Genius Electronic Optical CoTPE:3406 +2.67%92 Operating Margin % is 20.44% as of Dec. 2025, which is 7% above its 10-year median of 19.16. GuruFocus rates TPE:3406 with a GF Score™ of 92/100 and a GF Value™ of NT$496.23 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,471 Hardware companies, Genius Electronic Optical Co ranks better than 91.46% on this metric.
Genius Electronic Optical Co (TPE:3406) 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.
Genius Electronic Optical Co Operating Margin % Related Terms
Genius Electronic Optical 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.
Genius Electronic Optical Co Operating Margin % Chart
TPE:3406 vs SNDK, DELL, STX: Operating Margin % Comparison
For the Computer Hardware subindustry, Genius Electronic 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.
Genius Electronic Optical Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Genius Electronic Optical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Genius Electronic Optical Co's Operating Margin % falls into.
Genius Electronic Optical 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.
Genius Electronic Optical Co (TPE:3406) has a Operating Margin % of 20.44% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Genius Electronic Optical Co and its competitors. This is near median its historical median of 19.16. Over the past decade, Genius Electronic Optical Co's Operating Margin % has ranged from 2.25 to 28.62. According to the industry distribution chart, Genius Electronic Optical Co ranks #211 out of 2471 companies in the Hardware industry, placing it in the top 8.5%.
Is Genius Electronic Optical Co's Operating Margin % too high?
Genius Electronic Optical Co's current Operating Margin % of 20.44% is near median its 10-year median of 19.16. Over the past 10 years, this metric has ranged from a low of 2.25 to a high of 28.62. The Hardware industry median Operating Margin % is 3.82. Genius Electronic Optical Co's value of 20.44% is 435.1% above this industry median. Based on the distribution chart, Genius Electronic Optical Co ranks #211 out of 2471 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Genius Electronic Optical Co has a GF Score™ of 92/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Genius Electronic Optical Co's Operating Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Genius Electronic Optical Co ranks #211 out of 2471 companies for Operating Margin %. This places Genius Electronic Optical Co in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.82. Genius Electronic Optical Co's value of 20.44% is 435.1% above this benchmark. Historically, Genius Electronic Optical Co's own Operating Margin % has ranged from 2.25 to 28.62 over the past decade. While the company's 10-year median is 19.16 vs. the industry median of 3.82, Genius Electronic 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 3.82, based on 2,471 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. Genius Electronic Optical Co's current Operating Margin % of 20.44% is 435.1% 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 Genius Electronic Optical Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Genius Electronic Optical Co's current Operating Margin % is 20.44%, which is near median its own 10-year median of 19.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Genius Electronic Optical Co stock overvalued right now?
Based on GuruFocus' analysis, Genius Electronic Optical Co (TPE:3406) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$496.23, compared to a current price of NT$653.00 — trading 31.6% above its estimated fair value. The current Operating Margin % is 20.44%, which is near median its 10-year median of 19.16 and 435.1% above the Hardware industry median of 3.82. Genius Electronic Optical Co's overall GF Score™ is 92/100 with 2 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 Genius Electronic Optical Co (TPE:3406), the current Operating Margin % is 20.44% 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 Genius Electronic Optical Co (TPE:3406) Overvalued in 2026?
Based on GuruFocus' analysis, Genius Electronic Optical Co stock appears to be overvalued.
The current stock price of NT$653.00 is trading 31.6% above its estimated GF Value™ of NT$496.23.
GuruFocus considers Genius Electronic Optical Co to be Significantly Overvalued.
Key valuation signals for TPE:3406:
Operating Margin %: 20.44% (near median its 10-year median of 19.16)
GF Value™: NT$496.23 vs. price of NT$653.00 (31.6% above fair value)
Industry Position: 435.1% above the Hardware median (#211 of 2471)
No single metric tells the full story. See the TPE:3406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Genius Electronic Optical Co Ltd manufactures and sells optical instruments, molds, lighting equipment, and their spare parts, and acts as an agent of related export and import trade. Its segments include the Taiwan segment, responsible for the manufacturing and selling optical instrument, mold, and agent import and export; China segment responsible for the manufacturing and selling of optical lenses, lenses, optical components and other optoelectronic products and accessories pieces; Other segment engaged in selling, import and export, designing, manufacturing and the related business. It derives revenue from the Taiwan segment.
92GF Score
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