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Transcend InformationTPE:2451 -2.17%79 Operating Margin % is 55.60% as of Dec. 2025, which is 237% above its 10-year median of 16.48. GuruFocus rates TPE:2451 with a GF Score™ of 79/100 and a GF Value™ of NT$162.42 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,477 Hardware companies, Transcend Information ranks better than 99.07% on this metric.
Transcend Information (TPE:2451) 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.
Transcend Information Operating Margin % Related Terms
Transcend Information Operating Margin % Historical Data
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The historical data trend for Transcend Information'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:2451 vs SNDK, DELL, STX: Operating Margin % Comparison
For the Computer Hardware subindustry, Transcend Information'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.
Transcend Information Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Transcend Information's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Transcend Information's Operating Margin % falls into.
Transcend Information 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.
Transcend Information'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.
Transcend Information (TPE:2451) has a Operating Margin % of 55.60% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Transcend Information and its competitors. This is 237% above median its historical median of 16.48. Over the past decade, Transcend Information's Operating Margin % has ranged from 10.60 to 38.28. According to the industry distribution chart, Transcend Information ranks #23 out of 2477 companies in the Hardware industry, placing it in the top 0.90000000000001%.
Is Transcend Information's Operating Margin % too high?
Transcend Information's current Operating Margin % of 55.60% is 237% above median its 10-year median of 16.48. Over the past 10 years, this metric has ranged from a low of 10.60 to a high of 38.28. The Hardware industry median Operating Margin % is 3.82. Transcend Information's value of 55.60% is 1355.5% above this industry median. Based on the distribution chart, Transcend Information ranks #23 out of 2477 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Transcend Information has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Transcend Information's Operating Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Transcend Information ranks #23 out of 2477 companies for Operating Margin %. This places Transcend Information in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.82. Transcend Information's value of 55.60% is 1355.5% above this benchmark. Historically, Transcend Information's own Operating Margin % has ranged from 10.60 to 38.28 over the past decade. While the company's 10-year median is 16.48 vs. the industry median of 3.82, Transcend Information 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.82, based on 2,477 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. Transcend Information's current Operating Margin % of 55.60% is 1355.5% 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 Transcend Information and its competitors. For the Hardware industry, the median Operating Margin % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Transcend Information's current Operating Margin % is 55.60%, which is 237% above median its own 10-year median of 16.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Transcend Information stock overvalued right now?
Based on GuruFocus' analysis, Transcend Information (TPE:2451) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$162.42, compared to a current price of NT$247.50 — trading 52.4% above its estimated fair value. The current Operating Margin % is 55.60%, which is 237% above median its 10-year median of 16.48 and 1355.5% above the Hardware industry median of 3.82. Transcend Information's overall GF Score™ is 79/100 with 1 warning sign 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 Transcend Information (TPE:2451), the current Operating Margin % is 55.60% 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 Transcend Information (TPE:2451) Overvalued in 2026?
Based on GuruFocus' analysis, Transcend Information stock appears to be overvalued.
The current stock price of NT$247.50 is trading 52.4% above its estimated GF Value™ of NT$162.42.
GuruFocus considers Transcend Information to be Significantly Overvalued.
Key valuation signals for TPE:2451:
Operating Margin %: 55.60% (237% above median its 10-year median of 16.48)
GF Value™: NT$162.42 vs. price of NT$247.50 (52.4% above fair value)
Industry Position: 1355.5% above the Hardware median (#23 of 2477)
No single metric tells the full story. See the TPE:2451 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Transcend Information Inc is engaged in manufacturing, processing and sales of computer software and hardware, peripheral equipment and other computer components. Its product portfolio includes solid-state drives, body cameras, personal cloud storage, memory cards, USB flash drives, memory modules, card readers, and multimedia products. The company generates revenue in the Americas, Europe, Taiwan, and other countries in the Asia-Pacific region.
79GF 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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