Baolong International CoTPE:1906 +0.45%79 Operating Margin % is 7.26% as of Dec. 2025, which is 3057% above its 10-year median of 0.23. GuruFocus rates TPE:1906 with a GF Score™ of 79/100 and a GF Value™ of NT$12.32 (Fairly Valued). The stock has 8 warning signs investors should review. Among 283 Forest Products companies, Baolong International Co ranks better than 53% on this metric.
Baolong International Co (TPE:1906) 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.
Baolong International Co Operating Margin % Related Terms
Baolong International 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.
For the Paper & Paper Products subindustry, Baolong International 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.
Baolong International Co Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Baolong International Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Baolong International Co's Operating Margin % falls into.
Baolong International 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.
Baolong International 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.
Baolong International Co (TPE:1906) has a Operating Margin % of 7.26% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Baolong International Co and its competitors. This is 3057% above median its historical median of 0.23. According to the industry distribution chart, Baolong International Co ranks #133 out of 283 companies in the Forest Products industry, placing it in the top 47%.
Is Baolong International Co's Operating Margin % too high?
Baolong International Co's current Operating Margin % of 7.26% is 3057% above median its 10-year median of 0.23. The Forest Products industry median Operating Margin % is 2.60. Baolong International Co's value of 7.26% is 179.2% above this industry median. Based on the distribution chart, Baolong International Co ranks #133 out of 283 companies in the Forest Products industry, which is above the industry midpoint. Overall, Baolong International Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Baolong International Co's Operating Margin % compare to SLVM?
According to the Forest Products industry distribution chart, Baolong International Co ranks #133 out of 283 companies for Operating Margin %. This puts Baolong International Co in the upper half of its industry. The industry median Operating Margin % is 2.60. Baolong International Co's value of 7.26% is 179.2% above this benchmark. While the company's 10-year median is 0.23 vs. the industry median of 2.60, Baolong International 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.60, based on 283 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. Baolong International Co's current Operating Margin % of 7.26% is 179.2% 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 Baolong International Co and its competitors. For the Forest Products industry, the median Operating Margin % is 2.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baolong International Co's current Operating Margin % is 7.26%, which is 3057% above median its own 10-year median of 0.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Baolong International Co stock overvalued right now?
Based on GuruFocus' analysis, Baolong International Co (TPE:1906) is currently considered Fairly Valued. The stock's GF Value™ is NT$12.32, compared to a current price of NT$11.25 — trading 8.7% below its estimated fair value. The current Operating Margin % is 7.26%, which is 3057% above median its 10-year median of 0.23 and 179.2% above the Forest Products industry median of 2.60. Baolong International Co's overall GF Score™ is 79/100 with 8 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 Baolong International Co (TPE:1906), the current Operating Margin % is 7.26% 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 Baolong International Co (TPE:1906) Overvalued in 2026?
Based on GuruFocus' analysis, Baolong International Co stock appears to be undervalued.
The current stock price of NT$11.25 is trading 8.7% below its estimated GF Value™ of NT$12.32.
GuruFocus considers Baolong International Co to be Fairly Valued.
Key valuation signals for TPE:1906:
Operating Margin %: 7.26% (3057% above median its 10-year median of 0.23)
GF Value™: NT$12.32 vs. price of NT$11.25 (8.7% below fair value)
Industry Position: 179.2% above the Forest Products median (#133 of 283)
No single metric tells the full story. See the TPE:1906 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Baolong International Co Ltd primary business activity is international trade of containerboard. The company has only one operating segment. Its geographical segments include Taiwan, Asia, Africa, South America and Oceania. It generates the majority of its revenue from Asia.
79GF Score
Get the complete analysis for TPE:1906
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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