Tatung System TechnologiesROCO:8099 -1.70%81 Operating Margin % is 7.87% as of Dec. 2025, which is 87% above its 10-year median of 4.20. GuruFocus rates ROCO:8099 with a GF Score™ of 81/100 and a GF Value™ of NT$80.98 (Modestly Undervalued). Among 2,820 Software companies, Tatung System Technologies ranks better than 57.45% on this metric.
Tatung System Technologies (ROCO:8099) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Tatung System Technologies Operating Margin % Related Terms
Tatung System Technologies Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tatung System Technologies Operating Margin % Chart
ROCO:8099 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Tatung System Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tatung System Technologies Operating Margin % vs Software Industry
For the Software industry and Technology sector, Tatung System Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tatung System Technologies's Operating Margin % falls into.
Tatung System Technologies Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Tatung System Technologies's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tatung System Technologies (ROCO:8099) has a Operating Margin % of 7.87% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tatung System Technologies and its competitors. This is 87% above median its historical median of 4.20. Over the past decade, Tatung System Technologies' Operating Margin % has ranged from 2.71 to 6.14. According to the industry distribution chart, Tatung System Technologies ranks #1200 out of 2820 companies in the Software industry, placing it in the top 42.6%.
Is Tatung System Technologies' Operating Margin % too high?
Tatung System Technologies' current Operating Margin % of 7.87% is 87% above median its 10-year median of 4.20. Over the past 10 years, this metric has ranged from a low of 2.71 to a high of 6.14. The Software industry median Operating Margin % is 3.87. Tatung System Technologies' value of 7.87% is 103.6% above this industry median. Based on the distribution chart, Tatung System Technologies ranks #1200 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Tatung System Technologies has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tatung System Technologies' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Tatung System Technologies ranks #1200 out of 2820 companies for Operating Margin %. This puts Tatung System Technologies in the upper half of its industry. The industry median Operating Margin % is 3.87. Tatung System Technologies' value of 7.87% is 103.6% above this benchmark. Historically, Tatung System Technologies' own Operating Margin % has ranged from 2.71 to 6.14 over the past decade. While the company's 10-year median is 4.20 vs. the industry median of 3.87, Tatung System Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tatung System Technologies's current Operating Margin % of 7.87% is 103.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Tatung System Technologies and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tatung System Technologies's current Operating Margin % is 7.87%, which is 87% above median its own 10-year median of 4.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tatung System Technologies stock overvalued right now?
Based on GuruFocus' analysis, Tatung System Technologies (ROCO:8099) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$80.98, compared to a current price of NT$57.80 — trading 28.6% below its estimated fair value. The current Operating Margin % is 7.87%, which is 87% above median its 10-year median of 4.20 and 103.6% above the Software industry median of 3.87. Tatung System Technologies' overall GF Score™ is 81/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Tatung System Technologies (ROCO:8099), the current Operating Margin % is 7.87% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tatung System Technologies (ROCO:8099) Overvalued in 2026?
Based on GuruFocus' analysis, Tatung System Technologies stock appears to be undervalued.
The current stock price of NT$57.80 is trading 28.6% below its estimated GF Value™ of NT$80.98.
GuruFocus considers Tatung System Technologies to be Modestly Undervalued.
Key valuation signals for ROCO:8099:
Operating Margin %: 7.87% (87% above median its 10-year median of 4.20)
GF Value™: NT$80.98 vs. price of NT$57.80 (28.6% below fair value)
Industry Position: 103.6% above the Software median (#1200 of 2820)
No single metric tells the full story. See the ROCO:8099 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tatung System Technologies Inc is engaged in software and hardware sales related to computer, communications and cybersecurity; custom made system integration consulting and services; providing value-added industrial application solutions. Its solutions cover OneAi Solution, Cyber Security Zero Trust Architecture, Modern Data Center, Modern Work, and UC Collaboration. The company generates revenue from the distribution and maintenance of computers and peripherals, research, design, development, and sale of computer software/hardware, and informatization and digital transformation services.
81GF Score
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