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Eternal Materials CoTPE:1717 -8.90%66 Operating Margin % is 4.14% as of Dec. 2025, which is 22% below its 10-year median of 5.34. GuruFocus rates TPE:1717 with a GF Score™ of 66/100 and a GF Value™ of NT$31.09 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,578 Chemicals companies, Eternal Materials Co ranks worse than 59.51% on this metric.
Eternal Materials Co (TPE:1717) 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.
Eternal Materials Co Operating Margin % Related Terms
Eternal Materials Co Operating Margin % Historical Data
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The historical data trend for Eternal Materials 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:1717 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Eternal Materials 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.
Eternal Materials Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Eternal Materials Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eternal Materials Co's Operating Margin % falls into.
Eternal Materials 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.
Eternal Materials 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.
Eternal Materials Co (TPE:1717) has a Operating Margin % of 4.14% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Eternal Materials Co and its competitors. This is 22% below median its historical median of 5.34. Over the past decade, Eternal Materials Co's Operating Margin % has ranged from 4.22 to 8.43. According to the industry distribution chart, Eternal Materials Co ranks #939 out of 1578 companies in the Chemicals industry, placing it in the top 59.5%.
Is Eternal Materials Co's Operating Margin % too high?
Eternal Materials Co's current Operating Margin % of 4.14% is 22% below median its 10-year median of 5.34. Over the past 10 years, this metric has ranged from a low of 4.22 to a high of 8.43. The Chemicals industry median Operating Margin % is 6.03. Eternal Materials Co's value of 4.14% is 31.3% below this industry median. Based on the distribution chart, Eternal Materials Co ranks #939 out of 1578 companies in the Chemicals industry, which is below the industry midpoint. Overall, Eternal Materials Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Eternal Materials Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Eternal Materials Co ranks #939 out of 1578 companies for Operating Margin %. This places Eternal Materials Co in the lower half of its industry. The industry median Operating Margin % is 6.03. Eternal Materials Co's value of 4.14% is 31.3% below this benchmark. Historically, Eternal Materials Co's own Operating Margin % has ranged from 4.22 to 8.43 over the past decade. While the company's 10-year median is 5.34 vs. the industry median of 6.03, Eternal Materials Co has consistently been below 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,578 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. Eternal Materials Co's current Operating Margin % of 4.14% is 31.3% below 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 Eternal Materials Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eternal Materials Co's current Operating Margin % is 4.14%, which is 22% below median its own 10-year median of 5.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eternal Materials Co stock overvalued right now?
Based on GuruFocus' analysis, Eternal Materials Co (TPE:1717) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$31.09, compared to a current price of NT$64.50 — trading 107.5% above its estimated fair value. The current Operating Margin % is 4.14%, which is 22% below median its 10-year median of 5.34 and 31.3% below the Chemicals industry median of 6.03. Eternal Materials Co's overall GF Score™ is 66/100 with 7 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 Eternal Materials Co (TPE:1717), the current Operating Margin % is 4.14% 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 Eternal Materials Co (TPE:1717) Overvalued in 2026?
Based on GuruFocus' analysis, Eternal Materials Co stock appears to be overvalued.
The current stock price of NT$64.50 is trading 107.5% above its estimated GF Value™ of NT$31.09.
GuruFocus considers Eternal Materials Co to be Significantly Overvalued.
Key valuation signals for TPE:1717:
Operating Margin %: 4.14% (22% below median its 10-year median of 5.34)
GF Value™: NT$31.09 vs. price of NT$64.50 (107.5% above fair value)
Industry Position: 31.3% below the Chemicals median (#939 of 1578)
No single metric tells the full story. See the TPE:1717 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eternal Materials Co Ltd is mainly engaged in the research, manufacturing, processing, sale, and trading of diversified industrial synthetic resins, epoxy resin, acrylates, methacrylates, coating, molding compounds, copper clad laminates, film materials, photoresist materials, electronic chemical materials, composite materials, and bio-medical testing materials. The Company operates through the following segments: Resins Materials, which generates the maximum revenue and mainly operates a variety of industrial resins materials; Electronic Materials, which mainly operates electronic and optoelectronic industry raw materials and vacuum laminators; High Performance Materials, which mainly operates UV-light curing raw materials; and Others.
66GF Score
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