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Ruentex Engineeringnstruction Co (TPE:2597) 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.
Ruentex Engineeringnstruction Co Operating Margin % Related Terms
Ruentex Engineeringnstruction 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.
Ruentex Engineeringnstruction Co Operating Margin % Chart
TPE:2597 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Ruentex Engineeringnstruction 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.
Ruentex Engineeringnstruction Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Ruentex Engineeringnstruction Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ruentex Engineeringnstruction Co's Operating Margin % falls into.
Ruentex Engineeringnstruction 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.
Ruentex Engineeringnstruction Co (TPE:2597) has a Operating Margin % of 15.82% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Ruentex Engineeringnstruction Co and its competitors. This is 69% above median its historical median of 9.36. Over the past decade, Ruentex Engineeringnstruction Co's Operating Margin % has ranged from 6.09 to 13.64. According to the industry distribution chart, Ruentex Engineeringnstruction Co ranks #335 out of 1765 companies in the Construction industry, placing it in the top 19%.
Is Ruentex Engineeringnstruction Co's Operating Margin % too high?
Ruentex Engineeringnstruction Co's current Operating Margin % of 15.82% is 69% above median its 10-year median of 9.36. Over the past 10 years, this metric has ranged from a low of 6.09 to a high of 13.64. The Construction industry median Operating Margin % is 5.89. Ruentex Engineeringnstruction Co's value of 15.82% is 168.6% above this industry median. Based on the distribution chart, Ruentex Engineeringnstruction Co ranks #335 out of 1765 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Ruentex Engineeringnstruction Co has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ruentex Engineeringnstruction Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Ruentex Engineeringnstruction Co ranks #335 out of 1765 companies for Operating Margin %. This places Ruentex Engineeringnstruction Co in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Ruentex Engineeringnstruction Co's value of 15.82% is 168.6% above this benchmark. Historically, Ruentex Engineeringnstruction Co's own Operating Margin % has ranged from 6.09 to 13.64 over the past decade. While the company's 10-year median is 9.36 vs. the industry median of 5.89, Ruentex Engineeringnstruction 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 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. Ruentex Engineeringnstruction Co's current Operating Margin % of 15.82% is 168.6% 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 Ruentex Engineeringnstruction 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. Ruentex Engineeringnstruction Co's current Operating Margin % is 15.82%, which is 69% above median its own 10-year median of 9.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ruentex Engineeringnstruction Co stock overvalued right now?
Based on GuruFocus' analysis, Ruentex Engineeringnstruction Co (TPE:2597) is currently considered Fairly Valued. The stock's GF Value™ is NT$162.91, compared to a current price of NT$163.50 — trading 0.4% above its estimated fair value. The current Operating Margin % is 15.82%, which is 69% above median its 10-year median of 9.36 and 168.6% above the Construction industry median of 5.89. Ruentex Engineeringnstruction Co's overall GF Score™ is 94/100 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 Ruentex Engineeringnstruction Co (TPE:2597), the current Operating Margin % is 15.82% 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 Ruentex Engineeringnstruction Co (TPE:2597) Overvalued in 2026?
Based on GuruFocus' analysis, Ruentex Engineeringnstruction Co stock appears to be overvalued.
The current stock price of NT$163.50 is trading 0.4% above its estimated GF Value™ of NT$162.91.
GuruFocus considers Ruentex Engineeringnstruction Co to be Fairly Valued.
Key valuation signals for TPE:2597:
Operating Margin %: 15.82% (69% above median its 10-year median of 9.36)
GF Value™: NT$162.91 vs. price of NT$163.50 (0.4% above fair value)
Industry Position: 168.6% above the Construction median (#335 of 1765)
No single metric tells the full story. See the TPE:2597 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ruentex Engineeringnstruction Co Business Description
Ruentex Engineering & Construction Co is a Taiwan-based company that engages in the contracting, designing, and constructing of construction and civil engineering. It designs and constructs projects like residential buildings, office buildings, school buildings, factories, and parking lots, among others. The company's segments include Construction Business Division, Building Materials Division, and Interior Decoration Design Division. It generates the majority of its revenue from the Construction Business Division.
94GF 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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