Largan Precision CoTPE:3008 -2.00%77 Operating Margin % is 36.75% as of Dec. 2025, which is 31% below its 10-year median of 53.27. GuruFocus rates TPE:3008 with a GF Score™ of 77/100 and a GF Value™ of NT$2,805.14 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,472 Hardware companies, Largan Precision Co ranks better than 98.99% on this metric.
Largan Precision Co (TPE:3008) 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.
Largan Precision Co Operating Margin % Related Terms
Largan Precision Co Operating Margin % Historical Data
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The historical data trend for Largan Precision 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:3008 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Largan Precision 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.
Largan Precision Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Largan Precision Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Largan Precision Co's Operating Margin % falls into.
Largan Precision 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.
Largan Precision 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.
Largan Precision Co (TPE:3008) has a Operating Margin % of 36.75% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Largan Precision Co and its competitors. This is 31% below median its historical median of 53.27. Over the past decade, Largan Precision Co's Operating Margin % has ranged from 36.48 to 60.41. According to the industry distribution chart, Largan Precision Co ranks #25 out of 2472 companies in the Hardware industry, placing it in the top 1%.
Is Largan Precision Co's Operating Margin % too high?
Largan Precision Co's current Operating Margin % of 36.75% is 31% below median its 10-year median of 53.27. Over the past 10 years, this metric has ranged from a low of 36.48 to a high of 60.41. The Hardware industry median Operating Margin % is 3.80. Largan Precision Co's value of 36.75% is 867.1% above this industry median. Based on the distribution chart, Largan Precision Co ranks #25 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Largan Precision Co has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Largan Precision Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Largan Precision Co ranks #25 out of 2472 companies for Operating Margin %. This places Largan Precision Co in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Largan Precision Co's value of 36.75% is 867.1% above this benchmark. Historically, Largan Precision Co's own Operating Margin % has ranged from 36.48 to 60.41 over the past decade. While the company's 10-year median is 53.27 vs. the industry median of 3.80, Largan Precision 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 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. Largan Precision Co's current Operating Margin % of 36.75% is 867.1% 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 Largan Precision Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Largan Precision Co's current Operating Margin % is 36.75%, which is 31% below median its own 10-year median of 53.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Largan Precision Co stock overvalued right now?
Based on GuruFocus' analysis, Largan Precision Co (TPE:3008) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$2,805.14, compared to a current price of NT$4,900.00 — trading 74.7% above its estimated fair value. The current Operating Margin % is 36.75%, which is 31% below median its 10-year median of 53.27 and 867.1% above the Hardware industry median of 3.80. Largan Precision Co's overall GF Score™ is 77/100 with 8 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 Largan Precision Co (TPE:3008), the current Operating Margin % is 36.75% 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 Largan Precision Co (TPE:3008) Overvalued in 2026?
Based on GuruFocus' analysis, Largan Precision Co stock appears to be overvalued.
The current stock price of NT$4,900.00 is trading 74.7% above its estimated GF Value™ of NT$2,805.14.
GuruFocus considers Largan Precision Co to be Significantly Overvalued.
Key valuation signals for TPE:3008:
Operating Margin %: 36.75% (31% below median its 10-year median of 53.27)
GF Value™: NT$2,805.14 vs. price of NT$4,900.00 (74.7% above fair value)
Industry Position: 867.1% above the Hardware median (#25 of 2472)
No single metric tells the full story. See the TPE:3008 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Largan Precision is the leader in optical lens technology and the world's largest handset lensmaker by value. The company boasts almost three decades of experience in the production of optical lenses, namely plastic aspherical lenses, which are widely used to manufacture smartphone cameras. It is a major supplier of high-end handset camera lenses to global smartphone brands such as Apple and Samsung. The firm also produces optical lenses for various applications, such as for automobiles, digital cameras, and extended reality headsets. Largan was co-founded in 1987 by Scott Lin, whose son Adam Lin serves as the current CEO and chair. Largan is headquartered and mainly operates in Taichung City, Taiwan, and employs around 8,000 people.
77GF Score
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