Tainan Enterprise (Cayman) CoTPE:5906 75 Operating Margin % is 3.12% as of Dec. 2025, which is 25% below its 10-year median of 4.15. GuruFocus rates TPE:5906 with a GF Score™ of 75/100 and a GF Value™ of NT$45.32 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,041 Manufacturing - Apparel & Accessories companies, Tainan Enterprise (Cayman) Co ranks worse than 59.65% on this metric.
Tainan Enterprise (Cayman) Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -15.7%.
The historical rank and industry rank for Tainan Enterprise (Cayman) Co's Operating Margin % or its related term are showing as below:
TPE:5906'
s Operating Margin % Range Over the Past 10 Years
Min: -12.32 Med: 4.15 Max: 8.42
Current: 2.5
TPE:5906's Operating Margin % is ranked worse than 59.65% of 1041
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.08
vs TPE:5906: 2.50
Tainan Enterprise (Cayman) Co (TPE:5906) 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.
Tainan Enterprise (Cayman) Co Operating Margin % Related Terms
Tainan Enterprise (Cayman) 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.
Tainan Enterprise (Cayman) Co Operating Margin % Chart
TPE:5906 vs RL, LEVI, VFC: Operating Margin % Comparison
For the Apparel Manufacturing subindustry, Tainan Enterprise (Cayman) 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.
Tainan Enterprise (Cayman) Co Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Tainan Enterprise (Cayman) Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tainan Enterprise (Cayman) Co's Operating Margin % falls into.
Tainan Enterprise (Cayman) 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.
Tainan Enterprise (Cayman) Co (TPE:5906) has a Operating Margin % of 3.12% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tainan Enterprise (Cayman) Co and its competitors. This is 25% below median its historical median of 4.15. According to the industry distribution chart, Tainan Enterprise (Cayman) Co ranks #621 out of 1041 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 59.7%.
Is Tainan Enterprise (Cayman) Co's Operating Margin % too high?
Tainan Enterprise (Cayman) Co's current Operating Margin % of 3.12% is 25% below median its 10-year median of 4.15. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Tainan Enterprise (Cayman) Co's value of 3.12% is 23.5% below this industry median. Based on the distribution chart, Tainan Enterprise (Cayman) Co ranks #621 out of 1041 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Tainan Enterprise (Cayman) Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tainan Enterprise (Cayman) Co's Operating Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Tainan Enterprise (Cayman) Co ranks #621 out of 1041 companies for Operating Margin %. This places Tainan Enterprise (Cayman) Co in the lower half of its industry. The industry median Operating Margin % is 4.08. Tainan Enterprise (Cayman) Co's value of 3.12% is 23.5% below this benchmark. While the company's 10-year median is 4.15 vs. the industry median of 4.08, Tainan Enterprise (Cayman) Co has consistently been below 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,041 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. Tainan Enterprise (Cayman) Co's current Operating Margin % of 3.12% is 23.5% below 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 Tainan Enterprise (Cayman) Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tainan Enterprise (Cayman) Co's current Operating Margin % is 3.12%, which is 25% below median its own 10-year median of 4.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tainan Enterprise (Cayman) Co stock overvalued right now?
Based on GuruFocus' analysis, Tainan Enterprise (Cayman) Co (TPE:5906) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$45.32, compared to a current price of NT$38.00 — trading 16.2% below its estimated fair value. The current Operating Margin % is 3.12%, which is 25% below median its 10-year median of 4.15 and 23.5% below the Manufacturing - Apparel & Accessories industry median of 4.08. Tainan Enterprise (Cayman) Co's overall GF Score™ is 75/100 with 8 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 Tainan Enterprise (Cayman) Co (TPE:5906), the current Operating Margin % is 3.12% 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 Tainan Enterprise (Cayman) Co (TPE:5906) Overvalued in 2026?
Based on GuruFocus' analysis, Tainan Enterprise (Cayman) Co stock appears to be undervalued.
The current stock price of NT$38.00 is trading 16.2% below its estimated GF Value™ of NT$45.32.
GuruFocus considers Tainan Enterprise (Cayman) Co to be Modestly Undervalued.
Key valuation signals for TPE:5906:
Operating Margin %: 3.12% (25% below median its 10-year median of 4.15)
GF Value™: NT$45.32 vs. price of NT$38.00 (16.2% below fair value)
Industry Position: 23.5% below the Manufacturing - Apparel & Accessories median (#621 of 1041)
No single metric tells the full story. See the TPE:5906 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tainan Enterprise (Cayman) Co Business Description
Tainan Enterprise (Cayman) Co Ltd and its subsidiaries mainly engage in professional investment services and trading of various garments, footwear, and department stores. The company carries brands such as Tony Wear, Tony Jeans, Tony Uomo, and Tjl, and also acts as an agent for European apparel brands including Camel Active from Germany, New Man, and U by Ungaro from France. Its segments include sports business, which generates maximum revenue, cultural and creative department store, and others.
75GF Score
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