Asia Optical CoTPE:3019 -0.96%87 Operating Margin % is 5.86% as of Dec. 2025, which is 21% below its 10-year median of 7.46. GuruFocus rates TPE:3019 with a GF Score™ of 87/100 and a GF Value™ of NT$137.53 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, Asia Optical Co ranks better than 70.35% on this metric.
Asia Optical Co (TPE:3019) 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.
Asia Optical Co Operating Margin % Related Terms
Asia Optical Co Operating Margin % Historical Data
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The historical data trend for Asia Optical 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:3019 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Asia Optical 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.
Asia Optical Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Asia Optical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Asia Optical Co'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.
Asia Optical 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.
Asia Optical Co (TPE:3019) has a Operating Margin % of 5.86% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Asia Optical Co and its competitors. This is 21% below median its historical median of 7.46. Over the past decade, Asia Optical Co's Operating Margin % has ranged from 5.16 to 9.82. According to the industry distribution chart, Asia Optical Co ranks #733 out of 2472 companies in the Hardware industry, placing it in the top 29.7%.
Is Asia Optical Co's Operating Margin % too high?
Asia Optical Co's current Operating Margin % of 5.86% is 21% below median its 10-year median of 7.46. Over the past 10 years, this metric has ranged from a low of 5.16 to a high of 9.82. The Hardware industry median Operating Margin % is 3.80. Asia Optical Co's value of 5.86% is 54.2% above this industry median. Based on the distribution chart, Asia Optical Co ranks #733 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, Asia Optical Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asia Optical Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Asia Optical Co ranks #733 out of 2472 companies for Operating Margin %. This puts Asia Optical Co in the upper half of its industry. The industry median Operating Margin % is 3.80. Asia Optical Co's value of 5.86% is 54.2% above this benchmark. Historically, Asia Optical Co's own Operating Margin % has ranged from 5.16 to 9.82 over the past decade. While the company's 10-year median is 7.46 vs. the industry median of 3.80, Asia Optical 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. Asia Optical Co's current Operating Margin % of 5.86% is 54.2% 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 Asia Optical 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. Asia Optical Co's current Operating Margin % is 5.86%, which is 21% below median its own 10-year median of 7.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asia Optical Co stock overvalued right now?
Based on GuruFocus' analysis, Asia Optical Co (TPE:3019) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$137.53, compared to a current price of NT$155.50 — trading 13.1% above its estimated fair value. The current Operating Margin % is 5.86%, which is 21% below median its 10-year median of 7.46 and 54.2% above the Hardware industry median of 3.80. Asia Optical Co's overall GF Score™ is 87/100 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 Asia Optical Co (TPE:3019), the current Operating Margin % is 5.86% 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 Asia Optical Co (TPE:3019) Overvalued in 2026?
Based on GuruFocus' analysis, Asia Optical Co stock appears to be overvalued.
The current stock price of NT$155.50 is trading 13.1% above its estimated GF Value™ of NT$137.53.
GuruFocus considers Asia Optical Co to be Modestly Overvalued.
Key valuation signals for TPE:3019:
Operating Margin %: 5.86% (21% below median its 10-year median of 7.46)
GF Value™: NT$137.53 vs. price of NT$155.50 (13.1% above fair value)
Industry Position: 54.2% above the Hardware median (#733 of 2472)
No single metric tells the full story. See the TPE:3019 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asia Optical Co Inc is engaged in the manufacturing and sale of cameras, rangefinders, riflescopes, photocopier lens, scanner lens and optical components. The companies reportable segments included optical components, contact image sensor modules, optronics components, optronics products and digital camera. The majority of the revenue is generated from optical components. The company operates in two principal geographical areas Asia and America.
87GF Score
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