Hsing Ta Cement CoTPE:1109 -0.68%71 Operating Margin % is 8.27% as of Dec. 2025, which is 48% below its 10-year median of 15.85. GuruFocus rates TPE:1109 with a GF Score™ of 71/100 and a GF Value™ of NT$13.54 (Fairly Valued). The stock has 5 warning signs investors should review. Among 403 Building Materials companies, Hsing Ta Cement Co ranks better than 58.81% on this metric.
Hsing Ta Cement Co (TPE:1109) 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.
Hsing Ta Cement Co Operating Margin % Related Terms
Hsing Ta Cement Co Operating Margin % Historical Data
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The historical data trend for Hsing Ta Cement Co'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.
TPE:1109 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Hsing Ta Cement 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.
Hsing Ta Cement Co Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Hsing Ta Cement Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hsing Ta Cement Co'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.
Hsing Ta Cement Co'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.
Hsing Ta Cement Co (TPE:1109) has a Operating Margin % of 8.27% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hsing Ta Cement Co and its competitors. This is 48% below median its historical median of 15.85. Over the past decade, Hsing Ta Cement Co's Operating Margin % has ranged from 6.83 to 27.86. According to the industry distribution chart, Hsing Ta Cement Co ranks #166 out of 403 companies in the Building Materials industry, placing it in the top 41.2%.
Is Hsing Ta Cement Co's Operating Margin % too high?
Hsing Ta Cement Co's current Operating Margin % of 8.27% is 48% below median its 10-year median of 15.85. Over the past 10 years, this metric has ranged from a low of 6.83 to a high of 27.86. The Building Materials industry median Operating Margin % is 7.62. Hsing Ta Cement Co's value of 8.27% is 8.5% above this industry median. Based on the distribution chart, Hsing Ta Cement Co ranks #166 out of 403 companies in the Building Materials industry, which is above the industry midpoint. Overall, Hsing Ta Cement Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hsing Ta Cement Co's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Hsing Ta Cement Co ranks #166 out of 403 companies for Operating Margin %. This puts Hsing Ta Cement Co in the upper half of its industry. The industry median Operating Margin % is 7.62. Hsing Ta Cement Co's value of 8.27% is 8.5% above this benchmark. Historically, Hsing Ta Cement Co's own Operating Margin % has ranged from 6.83 to 27.86 over the past decade. While the company's 10-year median is 15.85 vs. the industry median of 7.62, Hsing Ta Cement 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.62, based on 403 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. Hsing Ta Cement Co's current Operating Margin % of 8.27% is 8.5% 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 Hsing Ta Cement Co and its competitors. For the Building Materials industry, the median Operating Margin % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hsing Ta Cement Co's current Operating Margin % is 8.27%, which is 48% below median its own 10-year median of 15.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hsing Ta Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Hsing Ta Cement Co (TPE:1109) is currently considered Fairly Valued. The stock's GF Value™ is NT$13.54, compared to a current price of NT$14.70 — trading 8.6% above its estimated fair value. The current Operating Margin % is 8.27%, which is 48% below median its 10-year median of 15.85 and 8.5% above the Building Materials industry median of 7.62. Hsing Ta Cement Co's overall GF Score™ is 71/100 with 5 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 Hsing Ta Cement Co (TPE:1109), the current Operating Margin % is 8.27% 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 Hsing Ta Cement Co (TPE:1109) Overvalued in 2026?
Based on GuruFocus' analysis, Hsing Ta Cement Co stock appears to be overvalued.
The current stock price of NT$14.70 is trading 8.6% above its estimated GF Value™ of NT$13.54.
GuruFocus considers Hsing Ta Cement Co to be Fairly Valued.
Key valuation signals for TPE:1109:
Operating Margin %: 8.27% (48% below median its 10-year median of 15.85)
GF Value™: NT$13.54 vs. price of NT$14.70 (8.6% above fair value)
Industry Position: 8.5% above the Building Materials median (#166 of 403)
No single metric tells the full story. See the TPE:1109 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hsing Ta Cement Co Ltd is engaged in quarrying, processing, warehousing, and distribution of minerals, manufacturing, processing, warehousing, and distribution of limestone chemicals, cement products and limestone related industry, treatment of general waste, sales and leasing of real estate, consultancy of building management, etc. It offers products such as Bootland Cement Type I Cement, Botland Type I Low Alkali Cement, Jinghao dry-mixed cement sand type III, and Others. The Company mainly operates businesses in Taiwan and China. It generates the majority of its revenue from China.
71GF Score
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