PCL TechnologiesTPE:4977 -1.62%74 Operating Margin % is 6.54% as of Dec. 2025, which is 49% below its 10-year median of 12.81. GuruFocus rates TPE:4977 with a GF Score™ of 74/100 and a GF Value™ of NT$97.47 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,472 Hardware companies, PCL Technologies ranks better than 65.05% on this metric.
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.
PCL Technologies Operating Margin % Related Terms
PCL Technologies Operating Margin % Historical Data
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The historical data trend for PCL Technologies'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:4977 vs DELL, SNDK, ANET: Operating Margin % Comparison
For the Computer Hardware subindustry, PCL Technologies'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.
PCL Technologies Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, PCL Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PCL Technologies'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.
PCL Technologies'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.
PCL Technologies (TPE:4977) has a Operating Margin % of 6.54% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on PCL Technologies and its competitors. This is 49% below median its historical median of 12.81. Over the past decade, PCL Technologies' Operating Margin % has ranged from 4.58 to 19.39. According to the industry distribution chart, PCL Technologies ranks #864 out of 2472 companies in the Hardware industry, placing it in the top 35%.
Is PCL Technologies' Operating Margin % too high?
PCL Technologies' current Operating Margin % of 6.54% is 49% below median its 10-year median of 12.81. Over the past 10 years, this metric has ranged from a low of 4.58 to a high of 19.39. The Hardware industry median Operating Margin % is 3.80. PCL Technologies' value of 6.54% is 72.1% above this industry median. Based on the distribution chart, PCL Technologies ranks #864 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, PCL Technologies has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PCL Technologies' Operating Margin % compare to DELL and SNDK?
According to the Hardware industry distribution chart, PCL Technologies ranks #864 out of 2472 companies for Operating Margin %. This puts PCL Technologies in the upper half of its industry. The industry median Operating Margin % is 3.80. PCL Technologies' value of 6.54% is 72.1% above this benchmark. Historically, PCL Technologies' own Operating Margin % has ranged from 4.58 to 19.39 over the past decade. While the company's 10-year median is 12.81 vs. the industry median of 3.80, PCL Technologies 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. PCL Technologies's current Operating Margin % of 6.54% is 72.1% 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 PCL Technologies 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. PCL Technologies's current Operating Margin % is 6.54%, which is 49% below median its own 10-year median of 12.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PCL Technologies stock overvalued right now?
Based on GuruFocus' analysis, PCL Technologies (TPE:4977) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$97.47, compared to a current price of NT$182.50 — trading 87.2% above its estimated fair value. The current Operating Margin % is 6.54%, which is 49% below median its 10-year median of 12.81 and 72.1% above the Hardware industry median of 3.80. PCL Technologies' overall GF Score™ is 74/100 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 PCL Technologies (TPE:4977), the current Operating Margin % is 6.54% 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 PCL Technologies (TPE:4977) Overvalued in 2026?
Based on GuruFocus' analysis, PCL Technologies stock appears to be overvalued.
The current stock price of NT$182.50 is trading 87.2% above its estimated GF Value™ of NT$97.47.
GuruFocus considers PCL Technologies to be Significantly Overvalued.
Key valuation signals for TPE:4977:
Operating Margin %: 6.54% (49% below median its 10-year median of 12.81)
GF Value™: NT$97.47 vs. price of NT$182.50 (87.2% above fair value)
Industry Position: 72.1% above the Hardware median (#864 of 2472)
No single metric tells the full story. See the TPE:4977 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PCL Technologies Inc is engaged in the manufacture, research, and sale of optical components, electro-mechanical components, and modules serving data communications, telecom, cloud computing, and networking markets. The products are sold in Taiwan and internationally. It generates revenue from Singapore. The Group mainly operates in research, development, manufacture, and sale of optical transceiver products and other optical components. The Group operates in three principal geographical areas: Mainland China, Taiwan, and Malaysia.
74GF Score
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