Elan MicroelectronicsTPE:2458 -1.20%88 Operating Margin % is 23.06% as of Dec. 2025, which is 7% above its 10-year median of 21.59. GuruFocus rates TPE:2458 with a GF Score™ of 88/100 and a GF Value™ of NT$140.06 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,023 Semiconductors companies, Elan Microelectronics ranks better than 88.27% on this metric.
Elan Microelectronics (TPE:2458) 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.
Elan Microelectronics Operating Margin % Related Terms
Elan Microelectronics Operating Margin % Historical Data
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The historical data trend for Elan Microelectronics'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:2458 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Elan Microelectronics'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.
Elan Microelectronics Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Elan Microelectronics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Elan Microelectronics's Operating Margin % falls into.
Elan Microelectronics 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.
Elan Microelectronics'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.
Elan Microelectronics (TPE:2458) has a Operating Margin % of 23.06% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Elan Microelectronics and its competitors. This is near median its historical median of 21.59. Over the past decade, Elan Microelectronics' Operating Margin % has ranged from 11.47 to 30.87. According to the industry distribution chart, Elan Microelectronics ranks #120 out of 1023 companies in the Semiconductors industry, placing it in the top 11.7%.
Is Elan Microelectronics' Operating Margin % too high?
Elan Microelectronics' current Operating Margin % of 23.06% is near median its 10-year median of 21.59. Over the past 10 years, this metric has ranged from a low of 11.47 to a high of 30.87. The Semiconductors industry median Operating Margin % is 5.24. Elan Microelectronics' value of 23.06% is 340.1% above this industry median. Based on the distribution chart, Elan Microelectronics ranks #120 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Elan Microelectronics has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Elan Microelectronics' Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Elan Microelectronics ranks #120 out of 1023 companies for Operating Margin %. This places Elan Microelectronics in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Elan Microelectronics' value of 23.06% is 340.1% above this benchmark. Historically, Elan Microelectronics' own Operating Margin % has ranged from 11.47 to 30.87 over the past decade. While the company's 10-year median is 21.59 vs. the industry median of 5.24, Elan Microelectronics 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 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. Elan Microelectronics's current Operating Margin % of 23.06% is 340.1% 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 Elan Microelectronics 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. Elan Microelectronics's current Operating Margin % is 23.06%, which is near median its own 10-year median of 21.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elan Microelectronics stock overvalued right now?
Based on GuruFocus' analysis, Elan Microelectronics (TPE:2458) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$140.06, compared to a current price of NT$164.00 — trading 17.1% above its estimated fair value. The current Operating Margin % is 23.06%, which is near median its 10-year median of 21.59 and 340.1% above the Semiconductors industry median of 5.24. Elan Microelectronics' overall GF Score™ is 88/100 with 9 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 Elan Microelectronics (TPE:2458), the current Operating Margin % is 23.06% 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 Elan Microelectronics (TPE:2458) Overvalued in 2026?
Based on GuruFocus' analysis, Elan Microelectronics stock appears to be overvalued.
The current stock price of NT$164.00 is trading 17.1% above its estimated GF Value™ of NT$140.06.
GuruFocus considers Elan Microelectronics to be Modestly Overvalued.
Key valuation signals for TPE:2458:
Operating Margin %: 23.06% (near median its 10-year median of 21.59)
GF Value™: NT$140.06 vs. price of NT$164.00 (17.1% above fair value)
Industry Position: 340.1% above the Semiconductors median (#120 of 1023)
No single metric tells the full story. See the TPE:2458 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elan Microelectronics Corp is engaged in the manufacture and sale of embedded microcontrollers and systems, digital signal processors, computer peripheral control integrated circuits and systems, fingerprint recognition devices and credit card applications, and also provides research and development services. The Group operates through the Consumer Touch Control, Laptop Input Device, Investment, Sales and Retailing, and Other segments. The Laptop Input Device segment generates maximum revenue and engages in laptop input devices, while the Consumer Touch Control segment engages in microprocessors, digital signal processors, application-specific integrated circuits and modules. The Group generates maximum revenue from Hong Kong.
88GF Score
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