Realtek SemiconductorTPE:2379 +1.37%92 Operating Margin % is 8.81% as of Dec. 2025, which is 18% below its 10-year median of 10.80. GuruFocus rates TPE:2379 with a GF Score™ of 92/100 and a GF Value™ of NT$569.23 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,023 Semiconductors companies, Realtek Semiconductor ranks better than 66.86% 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.
Realtek Semiconductor Operating Margin % Related Terms
Realtek Semiconductor Operating Margin % Historical Data
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The historical data trend for Realtek Semiconductor'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:2379 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Realtek 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.
Realtek Semiconductor Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Realtek Semiconductor's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Realtek Semiconductor'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.
Realtek 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.
Realtek Semiconductor (TPE:2379) has a Operating Margin % of 8.81% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Realtek Semiconductor and its competitors. This is 18% below median its historical median of 10.80. Over the past decade, Realtek Semiconductor's Operating Margin % has ranged from 7.02 to 16.42. According to the industry distribution chart, Realtek Semiconductor ranks #339 out of 1023 companies in the Semiconductors industry, placing it in the top 33.1%.
Is Realtek Semiconductor's Operating Margin % too high?
Realtek Semiconductor's current Operating Margin % of 8.81% is 18% below median its 10-year median of 10.80. Over the past 10 years, this metric has ranged from a low of 7.02 to a high of 16.42. The Semiconductors industry median Operating Margin % is 5.24. Realtek Semiconductor's value of 8.81% is 68.1% above this industry median. Based on the distribution chart, Realtek Semiconductor ranks #339 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Realtek Semiconductor has a GF Score™ of 92/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Realtek Semiconductor's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Realtek Semiconductor ranks #339 out of 1023 companies for Operating Margin %. This puts Realtek Semiconductor in the upper half of its industry. The industry median Operating Margin % is 5.24. Realtek Semiconductor's value of 8.81% is 68.1% above this benchmark. Historically, Realtek Semiconductor's own Operating Margin % has ranged from 7.02 to 16.42 over the past decade. While the company's 10-year median is 10.80 vs. the industry median of 5.24, Realtek Semiconductor 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 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. Realtek Semiconductor's current Operating Margin % of 8.81% is 68.1% 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 Realtek 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. Realtek Semiconductor's current Operating Margin % is 8.81%, which is 18% below median its own 10-year median of 10.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Realtek Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Realtek Semiconductor (TPE:2379) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$569.23, compared to a current price of NT$814.00 — trading 43% above its estimated fair value. The current Operating Margin % is 8.81%, which is 18% below median its 10-year median of 10.80 and 68.1% above the Semiconductors industry median of 5.24. Realtek Semiconductor's overall GF Score™ is 92/100 with 8 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 Realtek Semiconductor (TPE:2379), the current Operating Margin % is 8.81% 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 Realtek Semiconductor (TPE:2379) Overvalued in 2026?
Based on GuruFocus' analysis, Realtek Semiconductor stock appears to be overvalued.
The current stock price of NT$814.00 is trading 43% above its estimated GF Value™ of NT$569.23.
GuruFocus considers Realtek Semiconductor to be Significantly Overvalued.
Key valuation signals for TPE:2379:
Operating Margin %: 8.81% (18% below median its 10-year median of 10.80)
GF Value™: NT$569.23 vs. price of NT$814.00 (43% above fair value)
Industry Position: 68.1% above the Semiconductors median (#339 of 1023)
No single metric tells the full story. See the TPE:2379 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Realtek Semiconductor Corp is engaged in researching, developing, manufacturing, and selling various integrated circuits and related application software. The products of the company include Connected Media ICs, Communications Network ICs, Computer Peripheral ICs, Multimedia ICs, Smart Interconnect ICs and others. The company derives maximum revenue from the Asian region followed by Taiwan.
92GF Score
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