MITAC HoldingsTPE:3706 +0.23%86 Operating Margin % is 3.96% as of Dec. 2025, which is 217% above its 10-year median of 1.25. GuruFocus rates TPE:3706 with a GF Score™ of 86/100 and a GF Value™ of NT$130.01 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,471 Hardware companies, MITAC Holdings ranks better than 56.98% on this metric.
The historical rank and industry rank for MITAC Holdings's Operating Margin % or its related term are showing as below:
TPE:3706'
s Operating Margin % Range Over the Past 10 Years
Min: -1.91 Med: 1.25 Max: 5.09
Current: 5.09
TPE:3706's Operating Margin % is ranked better than 56.98% of 2471
companies
in the Hardware industry
Industry Median: 3.84
vs TPE:3706: 5.09
MITAC Holdings's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
MITAC Holdings's Operating Income for the
three
months ended in Dec. 2025 was NT$1,210 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was NT$5,374 Mil.
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.
MITAC Holdings Operating Margin % Related Terms
MITAC Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for MITAC Holdings'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:3706 vs SNDK, DELL, STX: Operating Margin % Comparison
For the Computer Hardware subindustry, MITAC Holdings'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.
MITAC Holdings Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, MITAC Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MITAC Holdings'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.
MITAC Holdings'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.
MITAC Holdings (TPE:3706) has a Operating Margin % of 3.96% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on MITAC Holdings and its competitors. This is 217% above median its historical median of 1.25. According to the industry distribution chart, MITAC Holdings ranks #1063 out of 2471 companies in the Hardware industry, placing it in the top 43%.
Is MITAC Holdings' Operating Margin % too high?
MITAC Holdings' current Operating Margin % of 3.96% is 217% above median its 10-year median of 1.25. The Hardware industry median Operating Margin % is 3.84. MITAC Holdings' value of 3.96% is 3.1% above this industry median. Based on the distribution chart, MITAC Holdings ranks #1063 out of 2471 companies in the Hardware industry, which is above the industry midpoint. Overall, MITAC Holdings has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MITAC Holdings' Operating Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, MITAC Holdings ranks #1063 out of 2471 companies for Operating Margin %. This puts MITAC Holdings in the upper half of its industry. The industry median Operating Margin % is 3.84. MITAC Holdings' value of 3.96% is 3.1% above this benchmark. While the company's 10-year median is 1.25 vs. the industry median of 3.84, MITAC Holdings 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. MITAC Holdings's current Operating Margin % of 3.96% is 3.1% 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 MITAC Holdings 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. MITAC Holdings's current Operating Margin % is 3.96%, which is 217% 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 MITAC Holdings stock overvalued right now?
Based on GuruFocus' analysis, MITAC Holdings (TPE:3706) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$130.01, compared to a current price of NT$88.20 — trading 32.2% below its estimated fair value. The current Operating Margin % is 3.96%, which is 217% above median its 10-year median of 1.25 and 3.1% above the Hardware industry median of 3.84. MITAC Holdings' overall GF Score™ is 86/100 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 MITAC Holdings (TPE:3706), the current Operating Margin % is 3.96% 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 MITAC Holdings (TPE:3706) Overvalued in 2026?
Based on GuruFocus' analysis, MITAC Holdings stock appears to be undervalued.
The current stock price of NT$88.20 is trading 32.2% below its estimated GF Value™ of NT$130.01.
GuruFocus considers MITAC Holdings to be Significantly Undervalued.
Key valuation signals for TPE:3706:
Operating Margin %: 3.96% (217% above median its 10-year median of 1.25)
GF Value™: NT$130.01 vs. price of NT$88.20 (32.2% below fair value)
Industry Position: 3.1% above the Hardware median (#1063 of 2471)
No single metric tells the full story. See the TPE:3706 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MITAC Holdings Corp is a holding company whose subsidiaries offer a range of electronics manufacturing services. It is engaged in designing, manufacturing, and distributing servers and storage products across various architectures in public cloud, private cloud, and hybrid cloud environments. The smart mobile device and cloud service business group builds application ecosystems that bridge cloud service and smart mobile devices. It serves industries such as finance, technology, retail, education, and manufacturing. The company brands include Mio, Magellan, Navman, and Tyan.
86GF 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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