Cheng Shin Rubber Industry CoTPE:2105 -0.68%70 Operating Margin % is 6.78% as of Dec. 2025, which is 12% below its 10-year median of 7.72. GuruFocus rates TPE:2105 with a GF Score™ of 70/100 and a GF Value™ of NT$42.43 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Cheng Shin Rubber Industry Co ranks better than 69.21% on this metric.
Cheng Shin Rubber Industry Co (TPE:2105) 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.
Cheng Shin Rubber Industry Co Operating Margin % Related Terms
Cheng Shin Rubber Industry 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.
Cheng Shin Rubber Industry Co Operating Margin % Chart
TPE:2105 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Cheng Shin Rubber Industry 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.
Cheng Shin Rubber Industry Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Cheng Shin Rubber Industry Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cheng Shin Rubber Industry Co's Operating Margin % falls into.
Cheng Shin Rubber Industry 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.
* 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.
Cheng Shin Rubber Industry Co (TPE:2105) has a Operating Margin % of 6.78% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Cheng Shin Rubber Industry Co and its competitors. This is 12% below median its historical median of 7.72. Over the past decade, Cheng Shin Rubber Industry Co's Operating Margin % has ranged from 6.40 to 15.91. According to the industry distribution chart, Cheng Shin Rubber Industry Co ranks #408 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 30.8%.
Is Cheng Shin Rubber Industry Co's Operating Margin % too high?
Cheng Shin Rubber Industry Co's current Operating Margin % of 6.78% is 12% below median its 10-year median of 7.72. Over the past 10 years, this metric has ranged from a low of 6.40 to a high of 15.91. The Vehicles & Parts industry median Operating Margin % is 4.86. Cheng Shin Rubber Industry Co's value of 6.78% is 39.5% above this industry median. Based on the distribution chart, Cheng Shin Rubber Industry Co ranks #408 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Cheng Shin Rubber Industry Co has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cheng Shin Rubber Industry Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Cheng Shin Rubber Industry Co ranks #408 out of 1325 companies for Operating Margin %. This puts Cheng Shin Rubber Industry Co in the upper half of its industry. The industry median Operating Margin % is 4.86. Cheng Shin Rubber Industry Co's value of 6.78% is 39.5% above this benchmark. Historically, Cheng Shin Rubber Industry Co's own Operating Margin % has ranged from 6.40 to 15.91 over the past decade. While the company's 10-year median is 7.72 vs. the industry median of 4.86, Cheng Shin Rubber Industry 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. Cheng Shin Rubber Industry Co's current Operating Margin % of 6.78% is 39.5% 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 Cheng Shin Rubber Industry Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Shin Rubber Industry Co's current Operating Margin % is 6.78%, which is 12% below median its own 10-year median of 7.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Shin Rubber Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Cheng Shin Rubber Industry Co (TPE:2105) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$42.43, compared to a current price of NT$29.40 — trading 30.7% below its estimated fair value. The current Operating Margin % is 6.78%, which is 12% below median its 10-year median of 7.72 and 39.5% above the Vehicles & Parts industry median of 4.86. Cheng Shin Rubber Industry Co's overall GF Score™ is 70/100 with 3 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 Cheng Shin Rubber Industry Co (TPE:2105), the current Operating Margin % is 6.78% 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 Cheng Shin Rubber Industry Co (TPE:2105) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Shin Rubber Industry Co stock appears to be undervalued.
The current stock price of NT$29.40 is trading 30.7% below its estimated GF Value™ of NT$42.43.
GuruFocus considers Cheng Shin Rubber Industry Co to be Significantly Undervalued.
Key valuation signals for TPE:2105:
Operating Margin %: 6.78% (12% below median its 10-year median of 7.72)
GF Value™: NT$42.43 vs. price of NT$29.40 (30.7% below fair value)
Industry Position: 39.5% above the Vehicles & Parts median (#408 of 1325)
No single metric tells the full story. See the TPE:2105 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Shin Rubber Industry Co Business Description
Cheng Shin Rubber Industry Co Ltd makes and sells rubber tires under the CST brand name. The company also sells rubber inner tubes and other rubber products. It includes the Processing, manufacturing, and trading of bicycle tires, electrical vehicle tires, reclaimed rubber, various rubbers, resin, and others. The Business organization is divided into Cheng Shin (Taiwan), MAXXIS (Taiwan) Trading, Cheng Shin (Xiamen), Cheng Shin (China), Petrel (Xiamen), Cheng Shin (Thailand), and other segments based on the nature of each company. The main sources of sales revenue are from manufacturing and sales of bicycle tires, electrical vehicle tires, reclaimed rubber, etc. Its geographical segments are Taiwan, China, the United States, and Others.
70GF Score
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