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.
Tong Hsing Electronic Industries Operating Margin % Related Terms
Tong Hsing Electronic Industries 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.
TPE:6271 vs LRCX, AMAT, KLAC: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Tong Hsing Electronic Industries'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.
Tong Hsing Electronic Industries Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Tong Hsing Electronic Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tong Hsing Electronic Industries'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.
* 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.
Tong Hsing Electronic Industries (TPE:6271) has a Operating Margin % of 14.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tong Hsing Electronic Industries and its competitors. This is near median its historical median of 15.16. Over the past decade, Tong Hsing Electronic Industries' Operating Margin % has ranged from 12.10 to 25.41. According to the industry distribution chart, Tong Hsing Electronic Industries ranks #290 out of 1023 companies in the Semiconductors industry, placing it in the top 28.3%.
Is Tong Hsing Electronic Industries' Operating Margin % too high?
Tong Hsing Electronic Industries' current Operating Margin % of 14.31% is near median its 10-year median of 15.16. Over the past 10 years, this metric has ranged from a low of 12.10 to a high of 25.41. The Semiconductors industry median Operating Margin % is 5.24. Tong Hsing Electronic Industries' value of 14.31% is 173.1% above this industry median. Based on the distribution chart, Tong Hsing Electronic Industries ranks #290 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Tong Hsing Electronic Industries has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tong Hsing Electronic Industries' Operating Margin % compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, Tong Hsing Electronic Industries ranks #290 out of 1023 companies for Operating Margin %. This puts Tong Hsing Electronic Industries in the upper half of its industry. The industry median Operating Margin % is 5.24. Tong Hsing Electronic Industries' value of 14.31% is 173.1% above this benchmark. Historically, Tong Hsing Electronic Industries' own Operating Margin % has ranged from 12.10 to 25.41 over the past decade. While the company's 10-year median is 15.16 vs. the industry median of 5.24, Tong Hsing Electronic Industries 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.24, based on 1,023 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. Tong Hsing Electronic Industries's current Operating Margin % of 14.31% is 173.1% 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 Tong Hsing Electronic Industries and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tong Hsing Electronic Industries's current Operating Margin % is 14.31%, which is near median its own 10-year median of 15.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tong Hsing Electronic Industries stock overvalued right now?
Based on GuruFocus' analysis, Tong Hsing Electronic Industries (TPE:6271) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$132.63, compared to a current price of NT$255.00 — trading 92.3% above its estimated fair value. The current Operating Margin % is 14.31%, which is near median its 10-year median of 15.16 and 173.1% above the Semiconductors industry median of 5.24. Tong Hsing Electronic Industries' overall GF Score™ is 73/100 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 Tong Hsing Electronic Industries (TPE:6271), the current Operating Margin % is 14.31% 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 Tong Hsing Electronic Industries (TPE:6271) Overvalued in 2026?
Based on GuruFocus' analysis, Tong Hsing Electronic Industries stock appears to be overvalued.
The current stock price of NT$255.00 is trading 92.3% above its estimated GF Value™ of NT$132.63.
GuruFocus considers Tong Hsing Electronic Industries to be Significantly Overvalued.
Key valuation signals for TPE:6271:
Operating Margin %: 14.31% (near median its 10-year median of 15.16)
GF Value™: NT$132.63 vs. price of NT$255.00 (92.3% above fair value)
Industry Position: 173.1% above the Semiconductors median (#290 of 1023)
No single metric tells the full story. See the TPE:6271 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tong Hsing Electronic Industries Business Description
Tong Hsing Electronic Industries Ltd is a Taiwan-based company principally engaged in the manufacture and sale of RF modules, ceramic metalized substrate, hybrid modules & specialty packaging, and image products. The company generates the majority of its revenue from overseas markets, including Japan, Singapore, Malaysia, the United States, Switzerland, China, and Others. Its core product offerings include Image products, Hybrid modules and specialty packaging, Ceramic metalized substrate, RF module, and others.
73GF Score
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