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Redwood GroupROCO:8426 +0.75%69 Operating Margin % is 14.66% as of Dec. 2025, which is 202% above its 10-year median of 4.86. GuruFocus rates ROCO:8426 with a GF Score™ of 69/100 and a GF Value™ of NT$50.08 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 431 Furnishings, Fixtures & Appliances companies, Redwood Group ranks better than 65.66% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Redwood Group's Operating Income for the
three
months ended in Dec. 2025 was NT$119 Mil. Redwood Group's Revenue for the
three
months ended in Dec. 2025 was NT$812 Mil. Therefore, Redwood Group's Operating Margin % for the quarter that ended in Dec. 2025 was 14.66%.
The historical rank and industry rank for Redwood Group's Operating Margin % or its related term are showing as below:
ROCO:8426'
s Operating Margin % Range Over the Past 10 Years
Min: -28.96 Med: 4.86 Max: 17.29
Current: 6.6
ROCO:8426's Operating Margin % is ranked better than 65.66% of 431
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 3.74
vs ROCO:8426: 6.60
Redwood Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Redwood Group's Operating Income for the
three
months ended in Dec. 2025 was NT$119 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was NT$179 Mil.
Redwood Group (ROCO:8426) 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.
Redwood Group Operating Margin % Related Terms
Redwood Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Redwood Group'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:8426 vs SN, SGI, MHK: Operating Margin % Comparison
For the Furnishings, Fixtures & Appliances subindustry, Redwood Group'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.
Redwood Group Operating Margin % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Redwood Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Redwood Group'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.
Redwood Group'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.
Redwood Group (ROCO:8426) has a Operating Margin % of 14.66% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Redwood Group and its competitors. This is 202% above median its historical median of 4.86. According to the industry distribution chart, Redwood Group ranks #148 out of 431 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 34.3%.
Is Redwood Group's Operating Margin % too high?
Redwood Group's current Operating Margin % of 14.66% is 202% above median its 10-year median of 4.86. The Furnishings, Fixtures & Appliances industry median Operating Margin % is 3.74. Redwood Group's value of 14.66% is 292% above this industry median. Based on the distribution chart, Redwood Group ranks #148 out of 431 companies in the Furnishings, Fixtures & Appliances industry, which is above the industry midpoint. Overall, Redwood Group has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Redwood Group's Operating Margin % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Redwood Group ranks #148 out of 431 companies for Operating Margin %. This puts Redwood Group in the upper half of its industry. The industry median Operating Margin % is 3.74. Redwood Group's value of 14.66% is 292% above this benchmark. While the company's 10-year median is 4.86 vs. the industry median of 3.74, Redwood Group 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 Furnishings, Fixtures & Appliances company?
The median Operating Margin % among Furnishings, Fixtures & Appliances companies is 3.74, based on 431 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. Redwood Group's current Operating Margin % of 14.66% is 292% 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 Redwood Group and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Operating Margin % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Group's current Operating Margin % is 14.66%, which is 202% above median its own 10-year median of 4.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Group stock overvalued right now?
Based on GuruFocus' analysis, Redwood Group (ROCO:8426) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$50.08, compared to a current price of NT$20.15 — trading 59.8% below its estimated fair value. The current Operating Margin % is 14.66%, which is 202% above median its 10-year median of 4.86 and 292% above the Furnishings, Fixtures & Appliances industry median of 3.74. Redwood Group's overall GF Score™ is 69/100 with 4 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 Redwood Group (ROCO:8426), the current Operating Margin % is 14.66% 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 Redwood Group (ROCO:8426) Overvalued in 2026?
Based on GuruFocus' analysis, Redwood Group stock appears to be undervalued.
The current stock price of NT$20.15 is trading 59.8% below its estimated GF Value™ of NT$50.08.
GuruFocus considers Redwood Group to be Significantly Undervalued.
Key valuation signals for ROCO:8426:
Operating Margin %: 14.66% (202% above median its 10-year median of 4.86)
GF Value™: NT$50.08 vs. price of NT$20.15 (59.8% below fair value)
Industry Position: 292% above the Furnishings, Fixtures & Appliances median (#148 of 431)
No single metric tells the full story. See the ROCO:8426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Redwood Group Ltd is a contract manufacturer of high-quality interior fittings. It is mainly engaged in the decoration of globally advance boutique brand stores. The Group operates in three principal geographical areas - Singapore, Malaysia, and the USA, other than that the company also operates in Asian, the Middle East, the Americas, and Europe.
69GF Score
Get the complete analysis for ROCO:8426
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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