Universal Microelectronics CoTPE:2413 -2.13%53 Operating Margin % is 3.38% as of Dec. 2025, which is 504% above its 10-year median of 0.56. GuruFocus rates TPE:2413 with a GF Score™ of 53/100 and a GF Value™ of NT$18.94 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,471 Hardware companies, Universal Microelectronics Co ranks worse than 65.92% on this metric.
Universal Microelectronics Co (TPE:2413) 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.
Universal Microelectronics Co Operating Margin % Related Terms
Universal Microelectronics 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.
Universal Microelectronics Co Operating Margin % Chart
TPE:2413 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Universal Microelectronics 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.
Universal Microelectronics Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Universal Microelectronics Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Universal Microelectronics Co's Operating Margin % falls into.
Universal Microelectronics 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.
Universal Microelectronics Co (TPE:2413) has a Operating Margin % of 3.38% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Universal Microelectronics Co and its competitors. This is 504% above median its historical median of 0.56. According to the industry distribution chart, Universal Microelectronics Co ranks #1629 out of 2471 companies in the Hardware industry, placing it in the top 65.9%.
Is Universal Microelectronics Co's Operating Margin % too high?
Universal Microelectronics Co's current Operating Margin % of 3.38% is 504% above median its 10-year median of 0.56. The Hardware industry median Operating Margin % is 3.80. Universal Microelectronics Co's value of 3.38% is 11.1% below this industry median. Based on the distribution chart, Universal Microelectronics Co ranks #1629 out of 2471 companies in the Hardware industry, which is below the industry midpoint. Overall, Universal Microelectronics Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Microelectronics Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Universal Microelectronics Co ranks #1629 out of 2471 companies for Operating Margin %. This places Universal Microelectronics Co in the lower half of its industry. The industry median Operating Margin % is 3.80. Universal Microelectronics Co's value of 3.38% is 11.1% below this benchmark. While the company's 10-year median is 0.56 vs. the industry median of 3.80, Universal Microelectronics Co has consistently been below 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,471 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. Universal Microelectronics Co's current Operating Margin % of 3.38% is 11.1% below 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 Universal Microelectronics Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Microelectronics Co's current Operating Margin % is 3.38%, which is 504% above median its own 10-year median of 0.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Microelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Universal Microelectronics Co (TPE:2413) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$18.94, compared to a current price of NT$50.60 — trading 167.2% above its estimated fair value. The current Operating Margin % is 3.38%, which is 504% above median its 10-year median of 0.56 and 11.1% below the Hardware industry median of 3.80. Universal Microelectronics Co's overall GF Score™ is 53/100 with 6 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 Universal Microelectronics Co (TPE:2413), the current Operating Margin % is 3.38% 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 Universal Microelectronics Co (TPE:2413) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Microelectronics Co stock appears to be overvalued.
The current stock price of NT$50.60 is trading 167.2% above its estimated GF Value™ of NT$18.94.
GuruFocus considers Universal Microelectronics Co to be Significantly Overvalued.
Key valuation signals for TPE:2413:
Operating Margin %: 3.38% (504% above median its 10-year median of 0.56)
GF Value™: NT$18.94 vs. price of NT$50.60 (167.2% above fair value)
Industry Position: 11.1% below the Hardware median (#1629 of 2471)
No single metric tells the full story. See the TPE:2413 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Microelectronics Co Business Description
Universal Microelectronics Co Ltd is engaged in the manufacturing and selling of computer peripherals, connectors, wires, and other parts. Its operating segments include the Magnetic Component & Power Product Department, which is responsible for the production of electronic components and generates maximum revenue; the Information and Communication Product Department, which is responsible for the production of OEM and ODM information and communication products; the Optical Communication Product Office, which is responsible for the production of optical communication equipment products; and Others, which mainly involves the trading of raw materials and acting as a purchasing agent for commodities. It generates maximum revenue from the United States.
53GF Score
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