Long Bon Development CoTPE:2514 80 Operating Margin % is 5.18% as of Dec. 2025, which is 83% above its 10-year median of 2.83. GuruFocus rates TPE:2514 with a GF Score™ of 80/100 and a GF Value™ of NT$19.16 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,765 Construction companies, Long Bon Development Co ranks worse than 54.5% on this metric.
Long Bon Development Co (TPE:2514) 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.
Long Bon Development Co Operating Margin % Related Terms
Long Bon Development Co Operating Margin % Historical Data
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The historical data trend for Long Bon Development Co'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:2514 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Long Bon Development 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.
Long Bon Development Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Long Bon Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Long Bon Development Co's Operating Margin % falls into.
Long Bon Development 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.
Long Bon Development Co'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.
Long Bon Development Co (TPE:2514) has a Operating Margin % of 5.18% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Long Bon Development Co and its competitors. This is 83% above median its historical median of 2.83. According to the industry distribution chart, Long Bon Development Co ranks #962 out of 1765 companies in the Construction industry, placing it in the top 54.5%.
Is Long Bon Development Co's Operating Margin % too high?
Long Bon Development Co's current Operating Margin % of 5.18% is 83% above median its 10-year median of 2.83. The Construction industry median Operating Margin % is 5.89. Long Bon Development Co's value of 5.18% is 12.1% below this industry median. Based on the distribution chart, Long Bon Development Co ranks #962 out of 1765 companies in the Construction industry, which is below the industry midpoint. Overall, Long Bon Development Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Long Bon Development Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Long Bon Development Co ranks #962 out of 1765 companies for Operating Margin %. This places Long Bon Development Co in the lower half of its industry. The industry median Operating Margin % is 5.89. Long Bon Development Co's value of 5.18% is 12.1% below this benchmark. While the company's 10-year median is 2.83 vs. the industry median of 5.89, Long Bon Development 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,765 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. Long Bon Development Co's current Operating Margin % of 5.18% is 12.1% 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 Long Bon Development Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Long Bon Development Co's current Operating Margin % is 5.18%, which is 83% above median its own 10-year median of 2.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Long Bon Development Co stock overvalued right now?
Based on GuruFocus' analysis, Long Bon Development Co (TPE:2514) is currently considered Possible Value Trap. The stock's GF Value™ is NT$19.16, compared to a current price of NT$12.95 — trading 32.4% below its estimated fair value. The current Operating Margin % is 5.18%, which is 83% above median its 10-year median of 2.83 and 12.1% below the Construction industry median of 5.89. Long Bon Development Co's overall GF Score™ is 80/100 with 4 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 Long Bon Development Co (TPE:2514), the current Operating Margin % is 5.18% 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 Long Bon Development Co (TPE:2514) Overvalued in 2026?
Based on GuruFocus' analysis, Long Bon Development Co stock appears to be undervalued.
The current stock price of NT$12.95 is trading 32.4% below its estimated GF Value™ of NT$19.16.
GuruFocus considers Long Bon Development Co to be Possible Value Trap.
Key valuation signals for TPE:2514:
Operating Margin %: 5.18% (83% above median its 10-year median of 2.83)
GF Value™: NT$19.16 vs. price of NT$12.95 (32.4% below fair value)
Industry Position: 12.1% below the Construction median (#962 of 1765)
No single metric tells the full story. See the TPE:2514 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Long Bon Development Co Ltd is a Taiwan-based company with operations in commercial property and car-park leasing, property developments, hotel management, and online shopping services. The company is also engaged in the management of the Qiaoyuan clubhouse, including guest rooms, conference rooms, and education and training rooms. Investment, Funeral, and Recreation were the group's four segments. Construction projects are the focus of the construction segment. The investment segment invests in financial instruments, while the funeral division provides funeral services and other services. Sports facilities are provided by the recreation segment. The majority of the revenue of the group is from the construction segment.
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