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Solidwizard Technology Co (ROCO:8416) 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.
Solidwizard Technology Co Operating Margin % Related Terms
Solidwizard Technology Co 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.
Solidwizard Technology Co Operating Margin % Chart
ROCO:8416 vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, Solidwizard Technology Co'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.
Solidwizard Technology Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Solidwizard Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Solidwizard Technology Co's Operating Margin % falls into.
Solidwizard Technology Co 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.
Solidwizard Technology Co's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Solidwizard Technology Co (ROCO:8416) has a Operating Margin % of 24.69% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Solidwizard Technology Co and its competitors. This is near median its historical median of 26.53. Over the past decade, Solidwizard Technology Co's Operating Margin % has ranged from 21.94 to 28.07. According to the industry distribution chart, Solidwizard Technology Co ranks #241 out of 2820 companies in the Software industry, placing it in the top 8.5%.
Is Solidwizard Technology Co's Operating Margin % too high?
Solidwizard Technology Co's current Operating Margin % of 24.69% is near median its 10-year median of 26.53. Over the past 10 years, this metric has ranged from a low of 21.94 to a high of 28.07. The Software industry median Operating Margin % is 3.90. Solidwizard Technology Co's value of 24.69% is 533.1% above this industry median. Based on the distribution chart, Solidwizard Technology Co ranks #241 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Solidwizard Technology Co has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Solidwizard Technology Co's Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Solidwizard Technology Co ranks #241 out of 2820 companies for Operating Margin %. This places Solidwizard Technology Co in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.90. Solidwizard Technology Co's value of 24.69% is 533.1% above this benchmark. Historically, Solidwizard Technology Co's own Operating Margin % has ranged from 21.94 to 28.07 over the past decade. While the company's 10-year median is 26.53 vs. the industry median of 3.90, Solidwizard Technology Co 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 3.90, 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. Solidwizard Technology Co's current Operating Margin % of 24.69% is 533.1% 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 Solidwizard Technology Co and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solidwizard Technology Co's current Operating Margin % is 24.69%, which is near median its own 10-year median of 26.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solidwizard Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Solidwizard Technology Co (ROCO:8416) is currently considered Fairly Valued. The stock's GF Value™ is NT$178.05, compared to a current price of NT$166.50 — trading 6.5% below its estimated fair value. The current Operating Margin % is 24.69%, which is near median its 10-year median of 26.53 and 533.1% above the Software industry median of 3.90. Solidwizard Technology Co's overall GF Score™ is 89/100 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 Solidwizard Technology Co (ROCO:8416), the current Operating Margin % is 24.69% as of Sep. 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 Solidwizard Technology Co (ROCO:8416) Overvalued in 2026?
Based on GuruFocus' analysis, Solidwizard Technology Co stock appears to be undervalued.
The current stock price of NT$166.50 is trading 6.5% below its estimated GF Value™ of NT$178.05.
GuruFocus considers Solidwizard Technology Co to be Fairly Valued.
Key valuation signals for ROCO:8416:
Operating Margin %: 24.69% (near median its 10-year median of 26.53)
GF Value™: NT$178.05 vs. price of NT$166.50 (6.5% below fair value)
Industry Position: 533.1% above the Software median (#241 of 2820)
No single metric tells the full story. See the ROCO:8416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solidwizard Technology Co Ltd is engaged in the R&D of IT software, electronic information supply service and wholesale of IT software. The company offers software, hardware and software solutions covering CAID, CAD, RP/RE, CAE, CAM, PDM. It also provides consultancy coaching and customized services.
89GF Score
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