Weltrend SemiconductorTPE:2436 -6.72%70 Operating Margin % is 3.81% as of Dec. 2025, which is 26% below its 10-year median of 5.14. GuruFocus rates TPE:2436 with a GF Score™ of 70/100 and a GF Value™ of NT$67.83 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,023 Semiconductors companies, Weltrend Semiconductor ranks better than 54.35% 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.
Weltrend Semiconductor Operating Margin % Related Terms
Weltrend Semiconductor Operating Margin % Historical Data
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The historical data trend for Weltrend 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:2436 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Weltrend 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.
Weltrend Semiconductor Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Weltrend Semiconductor's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Weltrend 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.
Weltrend 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.
Weltrend Semiconductor (TPE:2436) has a Operating Margin % of 3.81% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Weltrend Semiconductor and its competitors. This is 26% below median its historical median of 5.14. Over the past decade, Weltrend Semiconductor's Operating Margin % has ranged from 1.46 to 12.78. According to the industry distribution chart, Weltrend Semiconductor ranks #467 out of 1023 companies in the Semiconductors industry, placing it in the top 45.7%.
Is Weltrend Semiconductor's Operating Margin % too high?
Weltrend Semiconductor's current Operating Margin % of 3.81% is 26% below median its 10-year median of 5.14. Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 12.78. The Semiconductors industry median Operating Margin % is 5.24. Weltrend Semiconductor's value of 3.81% is 27.3% below this industry median. Based on the distribution chart, Weltrend Semiconductor ranks #467 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Weltrend Semiconductor has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Weltrend Semiconductor's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Weltrend Semiconductor ranks #467 out of 1023 companies for Operating Margin %. This puts Weltrend Semiconductor in the upper half of its industry. The industry median Operating Margin % is 5.24. Weltrend Semiconductor's value of 3.81% is 27.3% below this benchmark. Historically, Weltrend Semiconductor's own Operating Margin % has ranged from 1.46 to 12.78 over the past decade. While the company's 10-year median is 5.14 vs. the industry median of 5.24, Weltrend Semiconductor 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 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. Weltrend Semiconductor's current Operating Margin % of 3.81% is 27.3% 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 Weltrend 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. Weltrend Semiconductor's current Operating Margin % is 3.81%, which is 26% below median its own 10-year median of 5.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Weltrend Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Weltrend Semiconductor (TPE:2436) is currently considered Fairly Valued. The stock's GF Value™ is NT$67.83, compared to a current price of NT$70.80 — trading 4.4% above its estimated fair value. The current Operating Margin % is 3.81%, which is 26% below median its 10-year median of 5.14 and 27.3% below the Semiconductors industry median of 5.24. Weltrend Semiconductor's overall GF Score™ is 70/100 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 Weltrend Semiconductor (TPE:2436), the current Operating Margin % is 3.81% 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 Weltrend Semiconductor (TPE:2436) Overvalued in 2026?
Based on GuruFocus' analysis, Weltrend Semiconductor stock appears to be overvalued.
The current stock price of NT$70.80 is trading 4.4% above its estimated GF Value™ of NT$67.83.
GuruFocus considers Weltrend Semiconductor to be Fairly Valued.
Key valuation signals for TPE:2436:
Operating Margin %: 3.81% (26% below median its 10-year median of 5.14)
GF Value™: NT$67.83 vs. price of NT$70.80 (4.4% above fair value)
Industry Position: 27.3% below the Semiconductors median (#467 of 1023)
No single metric tells the full story. See the TPE:2436 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Weltrend Semiconductor Inc mainly engaging in research, development, production, testing, and sales of digital and analog hybrid special application integrated circuits, as well as digital and analog integrated circuits. The Group's reportable segments are its self-owned product segment and product agency segment. The majority of revenue comes from self-owned product segment. The Group mainly operates business in Taiwan, mainland China, and other regions of which majority of revenue comes from Mainland China. The Group's main products and services is Integrated circuits, Trading of integrated circuits, and Design and testing income of which majority of sales is from Integrated circuits.
70GF Score
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