Formosan Rubber GroupTPE:2107 +1.37%73 Operating Margin % is 14.22% as of Dec. 2025, which is 17% below its 10-year median of 17.20. GuruFocus rates TPE:2107 with a GF Score™ of 73/100 and a GF Value™ of NT$24.47 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,584 Chemicals companies, Formosan Rubber Group ranks better than 91.67% on this metric.
Formosan Rubber Group (TPE:2107) 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.
Formosan Rubber Group Operating Margin % Related Terms
Formosan Rubber Group Operating Margin % Historical Data
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The historical data trend for Formosan Rubber Group'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:2107 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Formosan Rubber Group'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.
Formosan Rubber Group Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Formosan Rubber Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Formosan Rubber Group's Operating Margin % falls into.
Formosan Rubber Group 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.
Formosan Rubber Group'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.
Formosan Rubber Group (TPE:2107) has a Operating Margin % of 14.22% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Formosan Rubber Group and its competitors. This is 17% below median its historical median of 17.20. Over the past decade, Formosan Rubber Group's Operating Margin % has ranged from 7.12 to 24.70. According to the industry distribution chart, Formosan Rubber Group ranks #132 out of 1584 companies in the Chemicals industry, placing it in the top 8.3%.
Is Formosan Rubber Group's Operating Margin % too high?
Formosan Rubber Group's current Operating Margin % of 14.22% is 17% below median its 10-year median of 17.20. Over the past 10 years, this metric has ranged from a low of 7.12 to a high of 24.70. The Chemicals industry median Operating Margin % is 6.03. Formosan Rubber Group's value of 14.22% is 136% above this industry median. Based on the distribution chart, Formosan Rubber Group ranks #132 out of 1584 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Formosan Rubber Group has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formosan Rubber Group's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Formosan Rubber Group ranks #132 out of 1584 companies for Operating Margin %. This places Formosan Rubber Group in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Formosan Rubber Group's value of 14.22% is 136% above this benchmark. Historically, Formosan Rubber Group's own Operating Margin % has ranged from 7.12 to 24.70 over the past decade. While the company's 10-year median is 17.20 vs. the industry median of 6.03, Formosan Rubber Group 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 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. Formosan Rubber Group's current Operating Margin % of 14.22% is 136% 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 Formosan Rubber Group and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosan Rubber Group's current Operating Margin % is 14.22%, which is 17% below median its own 10-year median of 17.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosan Rubber Group stock overvalued right now?
Based on GuruFocus' analysis, Formosan Rubber Group (TPE:2107) is currently considered Fairly Valued. The stock's GF Value™ is NT$24.47, compared to a current price of NT$25.85 — trading 5.6% above its estimated fair value. The current Operating Margin % is 14.22%, which is 17% below median its 10-year median of 17.20 and 136% above the Chemicals industry median of 6.03. Formosan Rubber Group's overall GF Score™ is 73/100 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 Formosan Rubber Group (TPE:2107), the current Operating Margin % is 14.22% 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 Formosan Rubber Group (TPE:2107) Overvalued in 2026?
Based on GuruFocus' analysis, Formosan Rubber Group stock appears to be overvalued.
The current stock price of NT$25.85 is trading 5.6% above its estimated GF Value™ of NT$24.47.
GuruFocus considers Formosan Rubber Group to be Fairly Valued.
Key valuation signals for TPE:2107:
Operating Margin %: 14.22% (17% below median its 10-year median of 17.20)
GF Value™: NT$24.47 vs. price of NT$25.85 (5.6% above fair value)
Industry Position: 136% above the Chemicals median (#132 of 1584)
No single metric tells the full story. See the TPE:2107 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosan Rubber Group Inc produces and markets rubber sheets, plastic sheets, plastic foam sheets, and PVC resin sheets, as well as the relevant materials. It is also engaged in the property development business and the leasing, sale, and management operations for its own properties and land. Company has three revenue sources that includes Net sales revenue, Construction revenue, and Rental and logistics revenue.
73GF Score
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