Young Fast Optoelectronics Co (TPE:3622) 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.
Young Fast Optoelectronics Co Operating Margin % Related Terms
Young Fast Optoelectronics 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.
Young Fast Optoelectronics Co Operating Margin % Chart
TPE:3622 vs APH, GLW: Operating Margin % Comparison
For the Electronic Components subindustry, Young Fast Optoelectronics 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.
Young Fast Optoelectronics Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Young Fast Optoelectronics Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Young Fast Optoelectronics Co's Operating Margin % falls into.
Young Fast Optoelectronics 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.
Young Fast Optoelectronics Co (TPE:3622) has a Operating Margin % of 17.10% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Young Fast Optoelectronics Co and its competitors. This is 1268% above median its historical median of 1.25. According to the industry distribution chart, Young Fast Optoelectronics Co ranks #91 out of 2471 companies in the Hardware industry, placing it in the top 3.7%.
Is Young Fast Optoelectronics Co's Operating Margin % too high?
Young Fast Optoelectronics Co's current Operating Margin % of 17.10% is 1268% above median its 10-year median of 1.25. The Hardware industry median Operating Margin % is 3.84. Young Fast Optoelectronics Co's value of 17.10% is 345.3% above this industry median. Based on the distribution chart, Young Fast Optoelectronics Co ranks #91 out of 2471 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Young Fast Optoelectronics Co has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Young Fast Optoelectronics Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Young Fast Optoelectronics Co ranks #91 out of 2471 companies for Operating Margin %. This places Young Fast Optoelectronics Co in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.84. Young Fast Optoelectronics Co's value of 17.10% is 345.3% above this benchmark. While the company's 10-year median is 1.25 vs. the industry median of 3.84, Young Fast Optoelectronics 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 3.84, 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. Young Fast Optoelectronics Co's current Operating Margin % of 17.10% is 345.3% 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 Young Fast Optoelectronics Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Young Fast Optoelectronics Co's current Operating Margin % is 17.10%, which is 1268% above median its own 10-year median of 1.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Young Fast Optoelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Young Fast Optoelectronics Co (TPE:3622) is currently considered Fairly Valued. The stock's GF Value™ is NT$58.28, compared to a current price of NT$56.20 — trading 3.6% below its estimated fair value. The current Operating Margin % is 17.10%, which is 1268% above median its 10-year median of 1.25 and 345.3% above the Hardware industry median of 3.84. Young Fast Optoelectronics Co's overall GF Score™ is 89/100 with 3 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 Young Fast Optoelectronics Co (TPE:3622), the current Operating Margin % is 17.10% 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 Young Fast Optoelectronics Co (TPE:3622) Overvalued in 2026?
Based on GuruFocus' analysis, Young Fast Optoelectronics Co stock appears to be undervalued.
The current stock price of NT$56.20 is trading 3.6% below its estimated GF Value™ of NT$58.28.
GuruFocus considers Young Fast Optoelectronics Co to be Fairly Valued.
Key valuation signals for TPE:3622:
Operating Margin %: 17.10% (1268% above median its 10-year median of 1.25)
GF Value™: NT$58.28 vs. price of NT$56.20 (3.6% below fair value)
Industry Position: 345.3% above the Hardware median (#91 of 2471)
No single metric tells the full story. See the TPE:3622 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Young Fast Optoelectronics Co Business Description
Young Fast Optoelectronics Co Ltd engages in the research and development, manufacturing, and sales of various types of touch panels. The reporting segments of the company are divided into the Electromechanical Business Group and the Optoelectronics Business Group. The majority of the company's revenue is generated from its Electromechanical Business Group, which is mainly engaged in the manufacture of power cable accessories, such as power generation, transmission, and distribution, as its main business. Geographically, it derives key revenue from Taiwan and the rest from the Americas and the Asia region.
89GF Score
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