Hotai Finance CoTPE:6592 +3.90%86 Operating Margin % is 36.02% as of Dec. 2025, which is 19% above its 10-year median of 30.18. GuruFocus rates TPE:6592 with a GF Score™ of 86/100 and a GF Value™ of NT$81.32 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 410 Credit Services companies, Hotai Finance Co ranks better than 73.9% on this metric.
Hotai Finance Co (TPE:6592) 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.
Hotai Finance Co Operating Margin % Related Terms
Hotai Finance Co Operating Margin % Historical Data
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The historical data trend for Hotai Finance Co'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:6592 vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Hotai Finance 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.
Hotai Finance Co Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Hotai Finance Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hotai Finance Co'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.
Hotai Finance 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.
Hotai Finance Co (TPE:6592) has a Operating Margin % of 36.02% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hotai Finance Co and its competitors. This is 19% above median its historical median of 30.18. Over the past decade, Hotai Finance Co's Operating Margin % has ranged from 6.66 to 37.29. According to the industry distribution chart, Hotai Finance Co ranks #107 out of 410 companies in the Credit Services industry, placing it in the top 26.1%.
Is Hotai Finance Co's Operating Margin % too high?
Hotai Finance Co's current Operating Margin % of 36.02% is 19% above median its 10-year median of 30.18. Over the past 10 years, this metric has ranged from a low of 6.66 to a high of 37.29. The Credit Services industry median Operating Margin % is 17.47. Hotai Finance Co's value of 36.02% is 106.2% above this industry median. Based on the distribution chart, Hotai Finance Co ranks #107 out of 410 companies in the Credit Services industry, which is above the industry midpoint. Overall, Hotai Finance Co has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hotai Finance Co's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Hotai Finance Co ranks #107 out of 410 companies for Operating Margin %. This puts Hotai Finance Co in the upper half of its industry. The industry median Operating Margin % is 17.47. Hotai Finance Co's value of 36.02% is 106.2% above this benchmark. Historically, Hotai Finance Co's own Operating Margin % has ranged from 6.66 to 37.29 over the past decade. While the company's 10-year median is 30.18 vs. the industry median of 17.47, Hotai Finance 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.47, based on 410 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. Hotai Finance Co's current Operating Margin % of 36.02% is 106.2% 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 Hotai Finance Co and its competitors. For the Credit Services industry, the median Operating Margin % is 17.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotai Finance Co's current Operating Margin % is 36.02%, which is 19% above median its own 10-year median of 30.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotai Finance Co stock overvalued right now?
Based on GuruFocus' analysis, Hotai Finance Co (TPE:6592) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$81.32, compared to a current price of NT$61.30 — trading 24.6% below its estimated fair value. The current Operating Margin % is 36.02%, which is 19% above median its 10-year median of 30.18 and 106.2% above the Credit Services industry median of 17.47. Hotai Finance Co's overall GF Score™ is 86/100 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 Hotai Finance Co (TPE:6592), the current Operating Margin % is 36.02% 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 Hotai Finance Co (TPE:6592) Overvalued in 2026?
Based on GuruFocus' analysis, Hotai Finance Co stock appears to be undervalued.
The current stock price of NT$61.30 is trading 24.6% below its estimated GF Value™ of NT$81.32.
GuruFocus considers Hotai Finance Co to be Modestly Undervalued.
Key valuation signals for TPE:6592:
Operating Margin %: 36.02% (19% above median its 10-year median of 30.18)
GF Value™: NT$81.32 vs. price of NT$61.30 (24.6% below fair value)
Industry Position: 106.2% above the Credit Services median (#107 of 410)
No single metric tells the full story. See the TPE:6592 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hotai Finance Co Ltd is a Taiwan-based full-service financing company. It is engaged in the installment sales and leases of vehicles and equipment. The company offers products and services such as an Installment loan for a new car, used car, motorcycle & scooter, and others. The company's geographical segment consists of Taiwan and China. The company generates the majority of its revenue from Taiwan.
86GF Score
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