Nankang Rubber TireTPE:2101 63 Operating Margin % is 4.37% as of Dec. 2025, which is 34% below its 10-year median of 6.66. GuruFocus rates TPE:2101 with a GF Score™ of 63/100 and a GF Value™ of NT$44.74 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,321 Vehicles & Parts companies, Nankang Rubber Tire ranks better than 63.06% on this metric.
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.
Nankang Rubber Tire Operating Margin % Related Terms
Nankang Rubber Tire Operating Margin % Historical Data
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The historical data trend for Nankang Rubber Tire'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:2101 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Nankang Rubber Tire'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.
Nankang Rubber Tire Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nankang Rubber Tire's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nankang Rubber Tire's Operating Margin % falls into.
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.
Nankang Rubber Tire'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.
Nankang Rubber Tire (TPE:2101) has a Operating Margin % of 4.37% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nankang Rubber Tire and its competitors. This is 34% below median its historical median of 6.66. According to the industry distribution chart, Nankang Rubber Tire ranks #488 out of 1321 companies in the Vehicles & Parts industry, placing it in the top 36.9%.
Is Nankang Rubber Tire's Operating Margin % too high?
Nankang Rubber Tire's current Operating Margin % of 4.37% is 34% below median its 10-year median of 6.66. The Vehicles & Parts industry median Operating Margin % is 4.89. Nankang Rubber Tire's value of 4.37% is 10.6% below this industry median. Based on the distribution chart, Nankang Rubber Tire ranks #488 out of 1321 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Nankang Rubber Tire has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nankang Rubber Tire's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nankang Rubber Tire ranks #488 out of 1321 companies for Operating Margin %. This puts Nankang Rubber Tire in the upper half of its industry. The industry median Operating Margin % is 4.89. Nankang Rubber Tire's value of 4.37% is 10.6% below this benchmark. While the company's 10-year median is 6.66 vs. the industry median of 4.89, Nankang Rubber Tire 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.89, based on 1,321 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. Nankang Rubber Tire's current Operating Margin % of 4.37% is 10.6% 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 Nankang Rubber Tire and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nankang Rubber Tire's current Operating Margin % is 4.37%, which is 34% below median its own 10-year median of 6.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nankang Rubber Tire stock overvalued right now?
Based on GuruFocus' analysis, Nankang Rubber Tire (TPE:2101) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$44.74, compared to a current price of NT$34.00 — trading 24% below its estimated fair value. The current Operating Margin % is 4.37%, which is 34% below median its 10-year median of 6.66 and 10.6% below the Vehicles & Parts industry median of 4.89. Nankang Rubber Tire's overall GF Score™ is 63/100 with 9 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 Nankang Rubber Tire (TPE:2101), the current Operating Margin % is 4.37% 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 Nankang Rubber Tire (TPE:2101) Overvalued in 2026?
Based on GuruFocus' analysis, Nankang Rubber Tire stock appears to be undervalued.
The current stock price of NT$34.00 is trading 24% below its estimated GF Value™ of NT$44.74.
GuruFocus considers Nankang Rubber Tire to be Modestly Undervalued.
Key valuation signals for TPE:2101:
Operating Margin %: 4.37% (34% below median its 10-year median of 6.66)
GF Value™: NT$44.74 vs. price of NT$34.00 (24% below fair value)
Industry Position: 10.6% below the Vehicles & Parts median (#488 of 1321)
No single metric tells the full story. See the TPE:2101 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nankang Rubber Tire Corp Ltd manufactures and sells tires and rubber supplies. The products offered by the company include Motorsport, sedan series, suv & 4x4, snow series, all-season tire series, light truck series, truck/trailer series, and two-wheel series. The reportable segments of the company are: Tire - Taiwan, Tire - China, Construction Department, and others. The segments of the company include: Tire-Taiwan, Tire-China, Construction, Department and Other. It derives maximum revenue from Tire-Taiwan segment. Its geographical segments are Taiwan, the United States, Europe, Other regions in Asia, and Others. The company derives maximum revenue from Europe.
63GF Score
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