China Wire & Cable CoTPE:1603 84 Operating Margin % is 6.41% as of Dec. 2025, which is 30% below its 10-year median of 9.19. GuruFocus rates TPE:1603 with a GF Score™ of 84/100 and a GF Value™ of NT$49.43 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,472 Hardware companies, China Wire & Cable Co ranks better than 77.39% on this metric.
China Wire & Cable Co (TPE:1603) 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.
China Wire & Cable Co Operating Margin % Related Terms
China Wire & Cable Co Operating Margin % Historical Data
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The historical data trend for China Wire & Cable 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:1603 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, China Wire & Cable 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.
China Wire & Cable Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, China Wire & Cable Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Wire & Cable Co's Operating Margin % falls into.
China Wire & Cable 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.
China Wire & Cable 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.
China Wire & Cable Co (TPE:1603) has a Operating Margin % of 6.41% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Wire & Cable Co and its competitors. This is 30% below median its historical median of 9.19. Over the past decade, China Wire & Cable Co's Operating Margin % has ranged from 4.71 to 12.26. According to the industry distribution chart, China Wire & Cable Co ranks #559 out of 2472 companies in the Hardware industry, placing it in the top 22.6%.
Is China Wire & Cable Co's Operating Margin % too high?
China Wire & Cable Co's current Operating Margin % of 6.41% is 30% below median its 10-year median of 9.19. Over the past 10 years, this metric has ranged from a low of 4.71 to a high of 12.26. The Hardware industry median Operating Margin % is 3.83. China Wire & Cable Co's value of 6.41% is 67.4% above this industry median. Based on the distribution chart, China Wire & Cable Co ranks #559 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, China Wire & Cable Co has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Wire & Cable Co's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, China Wire & Cable Co ranks #559 out of 2472 companies for Operating Margin %. This places China Wire & Cable Co in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.83. China Wire & Cable Co's value of 6.41% is 67.4% above this benchmark. Historically, China Wire & Cable Co's own Operating Margin % has ranged from 4.71 to 12.26 over the past decade. While the company's 10-year median is 9.19 vs. the industry median of 3.83, China Wire & Cable 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.83, based on 2,472 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. China Wire & Cable Co's current Operating Margin % of 6.41% is 67.4% 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 China Wire & Cable Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Wire & Cable Co's current Operating Margin % is 6.41%, which is 30% below median its own 10-year median of 9.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Wire & Cable Co stock overvalued right now?
Based on GuruFocus' analysis, China Wire & Cable Co (TPE:1603) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$49.43, compared to a current price of NT$32.35 — trading 34.6% below its estimated fair value. The current Operating Margin % is 6.41%, which is 30% below median its 10-year median of 9.19 and 67.4% above the Hardware industry median of 3.83. China Wire & Cable Co's overall GF Score™ is 84/100 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 China Wire & Cable Co (TPE:1603), the current Operating Margin % is 6.41% 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 China Wire & Cable Co (TPE:1603) Overvalued in 2026?
Based on GuruFocus' analysis, China Wire & Cable Co stock appears to be undervalued.
The current stock price of NT$32.35 is trading 34.6% below its estimated GF Value™ of NT$49.43.
GuruFocus considers China Wire & Cable Co to be Significantly Undervalued.
Key valuation signals for TPE:1603:
Operating Margin %: 6.41% (30% below median its 10-year median of 9.19)
GF Value™: NT$49.43 vs. price of NT$32.35 (34.6% below fair value)
Industry Position: 67.4% above the Hardware median (#559 of 2472)
No single metric tells the full story. See the TPE:1603 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Wire & Cable Co Ltd manufactures and distributes wires and cables. The company is engaged in the production, sales, processing, and installation services of electric wires and cables, aluminum doors, windows, and various aluminum products, and the import and export of various products, and the construction, rental, and sale of buildings. The company has two reporting segments the Cable Division, the Door and Window Division, and Other operating segments. The company derives its maximum revenue from Cable Division segment.
84GF Score
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