Li Cheng Enterprise Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.5%.
The historical rank and industry rank for Li Cheng Enterprise Co's Operating Margin % or its related term are showing as below:
TPE:4426'
s Operating Margin % Range Over the Past 10 Years
Min: -68.08 Med: -6.54 Max: 35.86
Current: -44.41
TPE:4426's Operating Margin % is ranked worse than 95.45% of 1034
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.085
vs TPE:4426: -44.41
Li Cheng Enterprise Co's 5-Year Average Operating Margin % Growth Rate was -5.50% per year.
Li Cheng Enterprise Co Ltd had lost money in 92% of the time over the past 12quarters.
Li Cheng Enterprise Co (TPE:4426) 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.
Li Cheng Enterprise Co Operating Margin % Related Terms
Li Cheng Enterprise Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Li Cheng Enterprise 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.
Li Cheng Enterprise Co Operating Margin % Competitor Comparison
For the Textile Manufacturing subindustry, Li Cheng Enterprise 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.
Li Cheng Enterprise Co Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Li Cheng Enterprise Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Li Cheng Enterprise Co's Operating Margin % falls into.
Li Cheng Enterprise 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.
Li Cheng Enterprise 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.
Li Cheng Enterprise Co (TPE:4426) has a Operating Margin % of -50.01% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Li Cheng Enterprise Co and its competitors. According to the industry distribution chart, Li Cheng Enterprise Co ranks #987 out of 1034 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 95.5%.
Is Li Cheng Enterprise Co's Operating Margin % too high?
Li Cheng Enterprise Co's current Operating Margin % is -50.01%. Based on the distribution chart, Li Cheng Enterprise Co ranks #987 out of 1034 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Li Cheng Enterprise Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Li Cheng Enterprise Co's Operating Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Li Cheng Enterprise Co ranks #987 out of 1034 companies for Operating Margin %. This places Li Cheng Enterprise Co in the lower half of its industry. The industry median Operating Margin % is 4.09. 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.09, based on 1,034 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. 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 Li Cheng Enterprise Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Li Cheng Enterprise Co's current Operating Margin % is -50.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Li Cheng Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Li Cheng Enterprise Co (TPE:4426) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$10.89, compared to a current price of NT$8.26 — trading 24.2% below its estimated fair value. The current Operating Margin % is -50.01%. Li Cheng Enterprise Co's overall GF Score™ is 55/100 with 7 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 Li Cheng Enterprise Co (TPE:4426), the current Operating Margin % is -50.01% 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 Li Cheng Enterprise Co (TPE:4426) Overvalued in 2026?
Based on GuruFocus' analysis, Li Cheng Enterprise Co stock appears to be undervalued.
The current stock price of NT$8.26 is trading 24.2% below its estimated GF Value™ of NT$10.89.
GuruFocus considers Li Cheng Enterprise Co to be Modestly Undervalued.
Key valuation signals for TPE:4426:
Operating Margin %: -50.01%
GF Value™: NT$10.89 vs. price of NT$8.26 (24.2% below fair value)
No single metric tells the full story. See the TPE:4426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Li Cheng Enterprise Co Ltd is mainly engaged in the wholesale and retail of fabrics, garments, and accessories, as well as spinning, weaving, dyeing, and finishing activities. The company operates through a single reporting segment, the knitted fabric dyeing and finishing division, which is mainly engaged in the manufacture and sale of three-layer mesh fabrics. Its product lines include finished fabrics, raw yarn, and other products. Geographically, the company derives maximum revenue from Taiwan, followed by Vietnam, Mainland China, and other countries.
55GF 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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