Chong Hong Construction CoTPE:5534 -0.51%78 Operating Margin % is 24.46% as of Dec. 2025, which is 19% below its 10-year median of 30.09. GuruFocus rates TPE:5534 with a GF Score™ of 78/100 and a GF Value™ of NT$72.28 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,745 Real Estate companies, Chong Hong Construction Co ranks better than 71.46% on this metric.
Chong Hong Construction Co (TPE:5534) 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.
Chong Hong Construction Co Operating Margin % Related Terms
Chong Hong Construction 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.
Chong Hong Construction Co Operating Margin % Chart
Chong Hong Construction Co Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, Chong Hong Construction 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.
Chong Hong Construction Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Chong Hong Construction Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chong Hong Construction Co's Operating Margin % falls into.
Chong Hong Construction 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.
Chong Hong Construction 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.
Chong Hong Construction Co (TPE:5534) has a Operating Margin % of 24.46% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Chong Hong Construction Co and its competitors. This is 19% below median its historical median of 30.09. Over the past decade, Chong Hong Construction Co's Operating Margin % has ranged from 23.37 to 38.27. According to the industry distribution chart, Chong Hong Construction Co ranks #498 out of 1745 companies in the Real Estate industry, placing it in the top 28.5%.
Is Chong Hong Construction Co's Operating Margin % too high?
Chong Hong Construction Co's current Operating Margin % of 24.46% is 19% below median its 10-year median of 30.09. Over the past 10 years, this metric has ranged from a low of 23.37 to a high of 38.27. The Real Estate industry median Operating Margin % is 13.21. Chong Hong Construction Co's value of 24.46% is 85.2% above this industry median. Based on the distribution chart, Chong Hong Construction Co ranks #498 out of 1745 companies in the Real Estate industry, which is above the industry midpoint. Overall, Chong Hong Construction Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chong Hong Construction Co's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Chong Hong Construction Co ranks #498 out of 1745 companies for Operating Margin %. This puts Chong Hong Construction Co in the upper half of its industry. The industry median Operating Margin % is 13.21. Chong Hong Construction Co's value of 24.46% is 85.2% above this benchmark. Historically, Chong Hong Construction Co's own Operating Margin % has ranged from 23.37 to 38.27 over the past decade. While the company's 10-year median is 30.09 vs. the industry median of 13.21, Chong Hong Construction 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 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. Chong Hong Construction Co's current Operating Margin % of 24.46% is 85.2% 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 Chong Hong Construction Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chong Hong Construction Co's current Operating Margin % is 24.46%, which is 19% below median its own 10-year median of 30.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chong Hong Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Chong Hong Construction Co (TPE:5534) is currently considered Fairly Valued. The stock's GF Value™ is NT$72.28, compared to a current price of NT$78.80 — trading 9% above its estimated fair value. The current Operating Margin % is 24.46%, which is 19% below median its 10-year median of 30.09 and 85.2% above the Real Estate industry median of 13.21. Chong Hong Construction Co's overall GF Score™ is 78/100 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 Chong Hong Construction Co (TPE:5534), the current Operating Margin % is 24.46% 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 Chong Hong Construction Co (TPE:5534) Overvalued in 2026?
Based on GuruFocus' analysis, Chong Hong Construction Co stock appears to be overvalued.
The current stock price of NT$78.80 is trading 9% above its estimated GF Value™ of NT$72.28.
GuruFocus considers Chong Hong Construction Co to be Fairly Valued.
Key valuation signals for TPE:5534:
Operating Margin %: 24.46% (19% below median its 10-year median of 30.09)
GF Value™: NT$72.28 vs. price of NT$78.80 (9% above fair value)
Industry Position: 85.2% above the Real Estate median (#498 of 1745)
No single metric tells the full story. See the TPE:5534 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chong Hong Construction Co Ltd mainly develops, sells, and leases residential and commercial property in Taiwan. The company derives revenue from the proceeds of lands, properties, contract fees, and rental income. Land revenue represents more than half of group income, followed by property revenue. The company operates through two segments. The Building segment is engaged in the construction of commercial buildings, public housing, and the lease of factories. The construction segment is engaged in building and construction projects.
78GF Score
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