Taiwan Asia Semiconductor Corp had lost money in 83% of the time over the past 12quarters.
Taiwan Asia Semiconductor (TPE:2340) 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.
Taiwan Asia Semiconductor Operating Margin % Related Terms
Taiwan Asia Semiconductor 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.
Taiwan Asia Semiconductor Operating Margin % Chart
TPE:2340 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Taiwan Asia Semiconductor'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.
Taiwan Asia Semiconductor Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Asia Semiconductor's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Asia Semiconductor's Operating Margin % falls into.
Taiwan Asia Semiconductor 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.
Taiwan Asia Semiconductor'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.
Taiwan Asia Semiconductor (TPE:2340) has a Operating Margin % of -33.02% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Taiwan Asia Semiconductor and its competitors. According to the industry distribution chart, Taiwan Asia Semiconductor ranks #889 out of 1023 companies in the Semiconductors industry, placing it in the top 86.9%.
Is Taiwan Asia Semiconductor's Operating Margin % too high?
Taiwan Asia Semiconductor's current Operating Margin % is -33.02%. Based on the distribution chart, Taiwan Asia Semiconductor ranks #889 out of 1023 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Taiwan Asia Semiconductor has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Asia Semiconductor's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Asia Semiconductor ranks #889 out of 1023 companies for Operating Margin %. This places Taiwan Asia Semiconductor in the lower half of its industry. The industry median Operating Margin % is 5.24. 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.24, based on 1,023 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. 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 Taiwan Asia Semiconductor and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Asia Semiconductor's current Operating Margin % is -33.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Asia Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Asia Semiconductor (TPE:2340) is currently considered Fairly Valued. The stock's GF Value™ is NT$35.96, compared to a current price of NT$39.20 — trading 9% above its estimated fair value. The current Operating Margin % is -33.02%. Taiwan Asia Semiconductor's overall GF Score™ is 61/100 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 Taiwan Asia Semiconductor (TPE:2340), the current Operating Margin % is -33.02% 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 Taiwan Asia Semiconductor (TPE:2340) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Asia Semiconductor stock appears to be overvalued.
The current stock price of NT$39.20 is trading 9% above its estimated GF Value™ of NT$35.96.
GuruFocus considers Taiwan Asia Semiconductor to be Fairly Valued.
Key valuation signals for TPE:2340:
Operating Margin %: -33.02%
GF Value™: NT$35.96 vs. price of NT$39.20 (9% above fair value)
No single metric tells the full story. See the TPE:2340 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Asia Semiconductor Corp mainly engaged in the manufacture and sales of semiconductor components as well as research and development, design, manufacture and sales of systems products. The company's products include Sensing Devices, Power Devices, Emitting Devices, Consumer and wearable, Industry, Automotive, Home Appliance, Security, Display, Lighting.
61GF Score
Get the complete analysis for TPE:2340
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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