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.
Mercuries & Associates Operating Margin % Related Terms
Mercuries & Associates Operating Margin % Historical Data
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The historical data trend for Mercuries & Associates'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:2905 vs AFL, MET, PRU: Operating Margin % Comparison
For the Insurance - Life subindustry, Mercuries & Associates'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.
Mercuries & Associates Operating Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Mercuries & Associates's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mercuries & Associates's Operating Margin % falls into.
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.
Mercuries & Associates'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.
Mercuries & Associates (TPE:2905) has a Operating Margin % of -2.95% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Mercuries & Associates and its competitors. According to the industry distribution chart, Mercuries & Associates ranks #15 out of 64 companies in the Insurance industry, placing it in the top 23.4%.
Is Mercuries & Associates' Operating Margin % too high?
Mercuries & Associates' current Operating Margin % is -2.95%. Based on the distribution chart, Mercuries & Associates ranks #15 out of 64 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Mercuries & Associates has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mercuries & Associates' Operating Margin % compare to AFL and MET?
According to the Insurance industry distribution chart, Mercuries & Associates ranks #15 out of 64 companies for Operating Margin %. This places Mercuries & Associates in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 11.62. 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 an Insurance company?
The median Operating Margin % among Insurance companies is 11.62, based on 64 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. 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 Mercuries & Associates and its competitors. For the Insurance industry, the median Operating Margin % is 11.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercuries & Associates's current Operating Margin % is -2.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercuries & Associates stock overvalued right now?
Based on GuruFocus' analysis, Mercuries & Associates (TPE:2905) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$11.77, compared to a current price of NT$15.00 — trading 27.4% above its estimated fair value. The current Operating Margin % is -2.95%. Mercuries & Associates' overall GF Score™ is 68/100 with 7 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 Mercuries & Associates (TPE:2905), the current Operating Margin % is -2.95% 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 Mercuries & Associates (TPE:2905) Overvalued in 2026?
Based on GuruFocus' analysis, Mercuries & Associates stock appears to be overvalued.
The current stock price of NT$15.00 is trading 27.4% above its estimated GF Value™ of NT$11.77.
GuruFocus considers Mercuries & Associates to be Modestly Overvalued.
Key valuation signals for TPE:2905:
Operating Margin %: -2.95%
GF Value™: NT$11.77 vs. price of NT$15.00 (27.4% above fair value)
No single metric tells the full story. See the TPE:2905 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercuries & Associates Ltd is mainly engaged in finance and investment. The company is engaged in diversified businesses such as insurance, food and beverage, pharmaceutical, and IT integration. The segment of the company include Life insurance, Retail, Food and beverage, Food, IT service, Pharmaceutical, and Others. The company derives maximum revenue from the Life Insurance segment. Geographically, the company operates in domestic regions only.
68GF 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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