Chih Lien Industrial CoTPE:2024 63 Operating Margin % is 2.74% as of Dec. 2025, which is 36% below its 10-year median of 4.31. GuruFocus rates TPE:2024 with a GF Score™ of 63/100 and a GF Value™ of NT$16.89 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 610 Steel companies, Chih Lien Industrial Co ranks worse than 69.84% on this metric.
Chih Lien Industrial Co (TPE:2024) 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.
Chih Lien Industrial Co Operating Margin % Related Terms
Chih Lien Industrial Co Operating Margin % Historical Data
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The historical data trend for Chih Lien Industrial 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:2024 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Chih Lien Industrial 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.
Chih Lien Industrial Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Chih Lien Industrial Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chih Lien Industrial Co's Operating Margin % falls into.
Chih Lien Industrial 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.
Chih Lien Industrial 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.
Chih Lien Industrial Co (TPE:2024) has a Operating Margin % of 2.74% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Chih Lien Industrial Co and its competitors. This is 36% below median its historical median of 4.31. According to the industry distribution chart, Chih Lien Industrial Co ranks #426 out of 610 companies in the Steel industry, placing it in the top 69.8%.
Is Chih Lien Industrial Co's Operating Margin % too high?
Chih Lien Industrial Co's current Operating Margin % of 2.74% is 36% below median its 10-year median of 4.31. The Steel industry median Operating Margin % is 3.00. Chih Lien Industrial Co's value of 2.74% is 8.7% below this industry median. Based on the distribution chart, Chih Lien Industrial Co ranks #426 out of 610 companies in the Steel industry, which is below the industry midpoint. Overall, Chih Lien Industrial Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chih Lien Industrial Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Chih Lien Industrial Co ranks #426 out of 610 companies for Operating Margin %. This places Chih Lien Industrial Co in the lower half of its industry. The industry median Operating Margin % is 3.00. Chih Lien Industrial Co's value of 2.74% is 8.7% below this benchmark. While the company's 10-year median is 4.31 vs. the industry median of 3.00, Chih Lien Industrial 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 610 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. Chih Lien Industrial Co's current Operating Margin % of 2.74% is 8.7% 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 Chih Lien Industrial Co and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chih Lien Industrial Co's current Operating Margin % is 2.74%, which is 36% below median its own 10-year median of 4.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chih Lien Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Chih Lien Industrial Co (TPE:2024) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$16.89, compared to a current price of NT$13.60 — trading 19.5% below its estimated fair value. The current Operating Margin % is 2.74%, which is 36% below median its 10-year median of 4.31 and 8.7% below the Steel industry median of 3.00. Chih Lien Industrial Co's overall GF Score™ is 63/100 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 Chih Lien Industrial Co (TPE:2024), the current Operating Margin % is 2.74% 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 Chih Lien Industrial Co (TPE:2024) Overvalued in 2026?
Based on GuruFocus' analysis, Chih Lien Industrial Co stock appears to be undervalued.
The current stock price of NT$13.60 is trading 19.5% below its estimated GF Value™ of NT$16.89.
GuruFocus considers Chih Lien Industrial Co to be Modestly Undervalued.
Key valuation signals for TPE:2024:
Operating Margin %: 2.74% (36% below median its 10-year median of 4.31)
GF Value™: NT$16.89 vs. price of NT$13.60 (19.5% below fair value)
Industry Position: 8.7% below the Steel median (#426 of 610)
No single metric tells the full story. See the TPE:2024 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chih Lien Industrial Co Ltd operates in the steel industry. Company is mainly engaged in the manufacturing, processing and trading of steel wire and steel bars. The Company operates in a single industry and is mainly engaged in the manufacturing and processing of steel wire and steel bars with similar end-use products. The company has presence in Taiwan, China, Indonesia, Malaysia, and Other. The company generates majority of revenue from Taiwan.
63GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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