Genie NetworksROCO:8298 80 Operating Margin % is 49.11% as of Dec. 2025, which is 580% above its 10-year median of 7.22. GuruFocus rates ROCO:8298 with a GF Score™ of 80/100 and a GF Value™ of NT$38.19 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,816 Software companies, Genie Networks ranks better than 92.97% on this metric.
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.
Genie Networks Operating Margin % Related Terms
Genie Networks Operating Margin % Historical Data
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The historical data trend for Genie Networks's Operating Margin % can be seen below:
* 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.
ROCO:8298 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Genie Networks'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.
Genie Networks Operating Margin % vs Software Industry
For the Software industry and Technology sector, Genie Networks's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Genie Networks's Operating Margin % falls into.
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.
Genie Networks'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.
Genie Networks (ROCO:8298) has a Operating Margin % of 49.11% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Genie Networks and its competitors. This is 580% above median its historical median of 7.22. According to the industry distribution chart, Genie Networks ranks #198 out of 2816 companies in the Software industry, placing it in the top 7%.
Is Genie Networks' Operating Margin % too high?
Genie Networks' current Operating Margin % of 49.11% is 580% above median its 10-year median of 7.22. The Software industry median Operating Margin % is 3.80. Genie Networks' value of 49.11% is 1194.1% above this industry median. Based on the distribution chart, Genie Networks ranks #198 out of 2816 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Genie Networks has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Genie Networks' Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Genie Networks ranks #198 out of 2816 companies for Operating Margin %. This places Genie Networks in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Genie Networks' value of 49.11% is 1194.1% above this benchmark. While the company's 10-year median is 7.22 vs. the industry median of 3.80, Genie Networks 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 3.80, based on 2,816 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. Genie Networks's current Operating Margin % of 49.11% is 1194.1% 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 Genie Networks and its competitors. For the Software industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Genie Networks's current Operating Margin % is 49.11%, which is 580% above median its own 10-year median of 7.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Genie Networks stock overvalued right now?
Based on GuruFocus' analysis, Genie Networks (ROCO:8298) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$38.19, compared to a current price of NT$51.00 — trading 33.5% above its estimated fair value. The current Operating Margin % is 49.11%, which is 580% above median its 10-year median of 7.22 and 1194.1% above the Software industry median of 3.80. Genie Networks' overall GF Score™ is 80/100 with 2 warning signs to review. 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 Genie Networks (ROCO:8298), the current Operating Margin % is 49.11% 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 Genie Networks (ROCO:8298) Overvalued in 2026?
Based on GuruFocus' analysis, Genie Networks stock appears to be overvalued.
The current stock price of NT$51.00 is trading 33.5% above its estimated GF Value™ of NT$38.19.
GuruFocus considers Genie Networks to be Significantly Overvalued.
Key valuation signals for ROCO:8298:
Operating Margin %: 49.11% (580% above median its 10-year median of 7.22)
GF Value™: NT$38.19 vs. price of NT$51.00 (33.5% above fair value)
Industry Position: 1194.1% above the Software median (#198 of 2816)
No single metric tells the full story. See the ROCO:8298 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Genie Networks Ltd is engaged in providing networking and security solutions in Taiwan. The company's solutions include network management systems, traffic analysis systems, broadband access control systems, network policy controllers, and traffic management with instant security violation detection for service providers and enterprises Its product offering includes GenieATM-6000-ISP, GenieATM-6000-MPLS and GenieATM6200.
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