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Sunplus Technology CoTPE:2401 -0.97%75 Operating Margin % is 11.45% as of Jun. 2026, which is 464% above its 10-year median of 2.03. GuruFocus rates TPE:2401 with a GF Score™ of 75/100 and a GF Value™ of NT$29.94 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,026 Semiconductors companies, Sunplus Technology Co ranks worse than 59.84% on this metric.
Sunplus Technology Co (TPE:2401) 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.
Sunplus Technology Co Operating Margin % Related Terms
Sunplus Technology Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sunplus Technology Co'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:2401 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Sunplus Technology 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.
Sunplus Technology Co Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Sunplus Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sunplus Technology Co's Operating Margin % falls into.
Sunplus Technology 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.
Sunplus Technology Co'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.
Sunplus Technology Co (TPE:2401) has a Operating Margin % of 11.45% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sunplus Technology Co and its competitors. This is 464% above median its historical median of 2.03. According to the industry distribution chart, Sunplus Technology Co ranks #614 out of 1026 companies in the Semiconductors industry, placing it in the top 59.8%.
Is Sunplus Technology Co's Operating Margin % too high?
Sunplus Technology Co's current Operating Margin % of 11.45% is 464% above median its 10-year median of 2.03. The Semiconductors industry median Operating Margin % is 6.44. Sunplus Technology Co's value of 11.45% is 77.8% above this industry median. Based on the distribution chart, Sunplus Technology Co ranks #614 out of 1026 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Sunplus Technology Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sunplus Technology Co's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Sunplus Technology Co ranks #614 out of 1026 companies for Operating Margin %. This places Sunplus Technology Co in the lower half of its industry. The industry median Operating Margin % is 6.44. Sunplus Technology Co's value of 11.45% is 77.8% above this benchmark. While the company's 10-year median is 2.03 vs. the industry median of 6.44, Sunplus Technology 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 6.44, based on 1,026 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. Sunplus Technology Co's current Operating Margin % of 11.45% is 77.8% 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 Sunplus Technology Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 6.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunplus Technology Co's current Operating Margin % is 11.45%, which is 464% above median its own 10-year median of 2.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunplus Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Sunplus Technology Co (TPE:2401) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$29.94, compared to a current price of NT$25.50 — trading 14.8% below its estimated fair value. The current Operating Margin % is 11.45%, which is 464% above median its 10-year median of 2.03 and 77.8% above the Semiconductors industry median of 6.44. Sunplus Technology Co's overall GF Score™ is 75/100 with 2 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 Sunplus Technology Co (TPE:2401), the current Operating Margin % is 11.45% as of Jun. 2026. 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 Sunplus Technology Co (TPE:2401) Overvalued in 2026?
Based on GuruFocus' analysis, Sunplus Technology Co stock appears to be undervalued.
The current stock price of NT$25.50 is trading 14.8% below its estimated GF Value™ of NT$29.94.
GuruFocus considers Sunplus Technology Co to be Modestly Undervalued.
Key valuation signals for TPE:2401:
Operating Margin %: 11.45% (464% above median its 10-year median of 2.03)
GF Value™: NT$29.94 vs. price of NT$25.50 (14.8% below fair value)
Industry Position: 77.8% above the Semiconductors median (#614 of 1026)
No single metric tells the full story. See the TPE:2401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunplus Technology Co Ltd designs, produces, tests, and sells integrated circuits (ICs). Additionally, the company researches, develops, and sells various software applications and silicon intellectual property, and is also involved in the trading and agency business of integrated circuits. Its product offerings include digital audio-visual and intelligent acoustic chips for automotive applications, smart system-on-chip solutions for driver assistance systems, AIoT SoC development platforms, and open-source software to create efficient AI computing cores. The company's reportable segments are: IC design, which derives key revenue, Income from lease of property, and Other income. Geographically, it derives maximum revenue from Asia (excluding Taiwan), followed by Taiwan and other markets.
75GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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