Froch Enterprise CoTPE:2030 -4.22%60 Operating Margin % is 2.61% as of Dec. 2025, which is 45% below its 10-year median of 4.72. GuruFocus rates TPE:2030 with a GF Score™ of 60/100 and a GF Value™ of NT$13.34 (Significantly Overvalued). The stock has 13 warning signs investors should review. Among 616 Steel companies, Froch Enterprise Co ranks worse than 56.98% on this metric.
Froch Enterprise Co (TPE:2030) 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.
Froch Enterprise Co Operating Margin % Related Terms
Froch Enterprise Co Operating Margin % Historical Data
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The historical data trend for Froch Enterprise 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:2030 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Froch Enterprise 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.
Froch Enterprise Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Froch Enterprise Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Froch Enterprise Co's Operating Margin % falls into.
Froch Enterprise 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.
Froch Enterprise 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.
Froch Enterprise Co (TPE:2030) has a Operating Margin % of 2.61% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Froch Enterprise Co and its competitors. This is 45% below median its historical median of 4.72. Over the past decade, Froch Enterprise Co's Operating Margin % has ranged from 1.95 to 11.33. According to the industry distribution chart, Froch Enterprise Co ranks #351 out of 616 companies in the Steel industry, placing it in the top 57%.
Is Froch Enterprise Co's Operating Margin % too high?
Froch Enterprise Co's current Operating Margin % of 2.61% is 45% below median its 10-year median of 4.72. Over the past 10 years, this metric has ranged from a low of 1.95 to a high of 11.33. The Steel industry median Operating Margin % is 3.00. Froch Enterprise Co's value of 2.61% is 13% below this industry median. Based on the distribution chart, Froch Enterprise Co ranks #351 out of 616 companies in the Steel industry, which is below the industry midpoint. Overall, Froch Enterprise Co has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Froch Enterprise Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Froch Enterprise Co ranks #351 out of 616 companies for Operating Margin %. This places Froch Enterprise Co in the lower half of its industry. The industry median Operating Margin % is 3.00. Froch Enterprise Co's value of 2.61% is 13% below this benchmark. Historically, Froch Enterprise Co's own Operating Margin % has ranged from 1.95 to 11.33 over the past decade. While the company's 10-year median is 4.72 vs. the industry median of 3.00, Froch Enterprise 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 616 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. Froch Enterprise Co's current Operating Margin % of 2.61% is 13% 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 Froch Enterprise 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. Froch Enterprise Co's current Operating Margin % is 2.61%, which is 45% below median its own 10-year median of 4.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Froch Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Froch Enterprise Co (TPE:2030) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$13.34, compared to a current price of NT$19.30 — trading 44.7% above its estimated fair value. The current Operating Margin % is 2.61%, which is 45% below median its 10-year median of 4.72 and 13% below the Steel industry median of 3.00. Froch Enterprise Co's overall GF Score™ is 60/100 with 13 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 Froch Enterprise Co (TPE:2030), the current Operating Margin % is 2.61% 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 Froch Enterprise Co (TPE:2030) Overvalued in 2026?
Based on GuruFocus' analysis, Froch Enterprise Co stock appears to be overvalued.
The current stock price of NT$19.30 is trading 44.7% above its estimated GF Value™ of NT$13.34.
GuruFocus considers Froch Enterprise Co to be Significantly Overvalued.
Key valuation signals for TPE:2030:
Operating Margin %: 2.61% (45% below median its 10-year median of 4.72)
GF Value™: NT$13.34 vs. price of NT$19.30 (44.7% above fair value)
Industry Position: 13% below the Steel median (#351 of 616)
No single metric tells the full story. See the TPE:2030 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Froch Enterprise Co Ltd is mainly manufactures and sells various stainless steel tube, steel tube, copper tube and aluminum tube. The company's reportable segments are Operating areas of the Republic of China, Operating areas of the People's Republic of China, and Operating areas of the Africa. The majority of revenue comes from Operating areas of the Republic of China segment. The company has presence in Asia, America, Europe, Middle East, and Others. The majority of revenue comes from Asia.
60GF Score
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