Syscom Computer Engineering Co (TPE:2453) 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.
Syscom Computer Engineering Co Operating Margin % Related Terms
Syscom Computer Engineering 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.
Syscom Computer Engineering Co Operating Margin % Chart
TPE:2453 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Syscom Computer Engineering 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.
Syscom Computer Engineering Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Syscom Computer Engineering Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Syscom Computer Engineering Co's Operating Margin % falls into.
Syscom Computer Engineering 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.
Syscom Computer Engineering Co (TPE:2453) has a Operating Margin % of 4.56% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Syscom Computer Engineering Co and its competitors. This is 26% above median its historical median of 3.61. Over the past decade, Syscom Computer Engineering Co's Operating Margin % has ranged from 0.77 to 4.75. According to the industry distribution chart, Syscom Computer Engineering Co ranks #1329 out of 2818 companies in the Software industry, placing it in the top 47.2%.
Is Syscom Computer Engineering Co's Operating Margin % too high?
Syscom Computer Engineering Co's current Operating Margin % of 4.56% is 26% above median its 10-year median of 3.61. Over the past 10 years, this metric has ranged from a low of 0.77 to a high of 4.75. The Software industry median Operating Margin % is 3.87. Syscom Computer Engineering Co's value of 4.56% is 18% above this industry median. Based on the distribution chart, Syscom Computer Engineering Co ranks #1329 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Syscom Computer Engineering Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Syscom Computer Engineering Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Syscom Computer Engineering Co ranks #1329 out of 2818 companies for Operating Margin %. This puts Syscom Computer Engineering Co in the upper half of its industry. The industry median Operating Margin % is 3.87. Syscom Computer Engineering Co's value of 4.56% is 18% above this benchmark. Historically, Syscom Computer Engineering Co's own Operating Margin % has ranged from 0.77 to 4.75 over the past decade. While the company's 10-year median is 3.61 vs. the industry median of 3.87, Syscom Computer Engineering 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 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. Syscom Computer Engineering Co's current Operating Margin % of 4.56% is 18% 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 Syscom Computer Engineering Co and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Syscom Computer Engineering Co's current Operating Margin % is 4.56%, which is 26% above median its own 10-year median of 3.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Syscom Computer Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Syscom Computer Engineering Co (TPE:2453) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$66.71, compared to a current price of NT$56.60 — trading 15.2% below its estimated fair value. The current Operating Margin % is 4.56%, which is 26% above median its 10-year median of 3.61 and 18% above the Software industry median of 3.87. Syscom Computer Engineering Co's overall GF Score™ is 95/100 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 Syscom Computer Engineering Co (TPE:2453), the current Operating Margin % is 4.56% 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 Syscom Computer Engineering Co (TPE:2453) Overvalued in 2026?
Based on GuruFocus' analysis, Syscom Computer Engineering Co stock appears to be undervalued.
The current stock price of NT$56.60 is trading 15.2% below its estimated GF Value™ of NT$66.71.
GuruFocus considers Syscom Computer Engineering Co to be Modestly Undervalued.
Key valuation signals for TPE:2453:
Operating Margin %: 4.56% (26% above median its 10-year median of 3.61)
GF Value™: NT$66.71 vs. price of NT$56.60 (15.2% below fair value)
Industry Position: 18% above the Software median (#1329 of 2818)
No single metric tells the full story. See the TPE:2453 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Syscom Computer Engineering Co Business Description
Syscom Computer Engineering Co is an information technology service-providing company. The company mainly leases and sells computer systems and designs computer software. The company also provides services for the integration of computer information systems and maintenance of computer hardware. The company operates in geographical areas of Taiwan, China, the U.S.A., and Southeast Asia.
95GF Score
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