Global Brands Manufacture (TPE:6191) 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.
Global Brands Manufacture Operating Margin % Related Terms
Global Brands Manufacture 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.
Global Brands Manufacture Operating Margin % Chart
TPE:6191 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Global Brands Manufacture'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.
Global Brands Manufacture Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Global Brands Manufacture's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Global Brands Manufacture's Operating Margin % falls into.
Global Brands Manufacture 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.
Global Brands Manufacture'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.
Global Brands Manufacture (TPE:6191) has a Operating Margin % of 7.61% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Global Brands Manufacture and its competitors. This is 27% below median its historical median of 10.41. Over the past decade, Global Brands Manufacture's Operating Margin % has ranged from 2.57 to 15.96. According to the industry distribution chart, Global Brands Manufacture ranks #575 out of 2472 companies in the Hardware industry, placing it in the top 23.3%.
Is Global Brands Manufacture's Operating Margin % too high?
Global Brands Manufacture's current Operating Margin % of 7.61% is 27% below median its 10-year median of 10.41. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 15.96. The Hardware industry median Operating Margin % is 3.81. Global Brands Manufacture's value of 7.61% is 99.7% above this industry median. Based on the distribution chart, Global Brands Manufacture ranks #575 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Global Brands Manufacture has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Global Brands Manufacture's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Global Brands Manufacture ranks #575 out of 2472 companies for Operating Margin %. This places Global Brands Manufacture in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. Global Brands Manufacture's value of 7.61% is 99.7% above this benchmark. Historically, Global Brands Manufacture's own Operating Margin % has ranged from 2.57 to 15.96 over the past decade. While the company's 10-year median is 10.41 vs. the industry median of 3.81, Global Brands Manufacture 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 3.81, 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. Global Brands Manufacture's current Operating Margin % of 7.61% is 99.7% 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 Global Brands Manufacture and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Global Brands Manufacture's current Operating Margin % is 7.61%, which is 27% below median its own 10-year median of 10.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Global Brands Manufacture stock overvalued right now?
Based on GuruFocus' analysis, Global Brands Manufacture (TPE:6191) is currently considered Fairly Valued. The stock's GF Value™ is NT$97.38, compared to a current price of NT$99.30 — trading 2% above its estimated fair value. The current Operating Margin % is 7.61%, which is 27% below median its 10-year median of 10.41 and 99.7% above the Hardware industry median of 3.81. Global Brands Manufacture's overall GF Score™ is 86/100 with 4 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 Global Brands Manufacture (TPE:6191), the current Operating Margin % is 7.61% 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 Global Brands Manufacture (TPE:6191) Overvalued in 2026?
Based on GuruFocus' analysis, Global Brands Manufacture stock appears to be overvalued.
The current stock price of NT$99.30 is trading 2% above its estimated GF Value™ of NT$97.38.
GuruFocus considers Global Brands Manufacture to be Fairly Valued.
Key valuation signals for TPE:6191:
Operating Margin %: 7.61% (27% below median its 10-year median of 10.41)
GF Value™: NT$97.38 vs. price of NT$99.30 (2% above fair value)
Industry Position: 99.7% above the Hardware median (#575 of 2472)
No single metric tells the full story. See the TPE:6191 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Global Brands Manufacture Ltd is mainly engaged in the manufacturer specializing in Printed Circuit Boards (PCB) and Electronic Manufacturing Services (EMS). The company serves a diverse range of markets, including information, communication, automobile, and consumer electronics. Its geographical segments are Asia, America, and Europe, of which the majority of its revenue comes from Asia.
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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