Ping Ho Environmental Technology Co (TPE:6771) 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.
Ping Ho Environmental Technology Co Operating Margin % Related Terms
Ping Ho Environmental Technology 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.
Ping Ho Environmental Technology Co Operating Margin % Chart
TPE:6771 vs WM, RSG, WCN: Operating Margin % Comparison
For the Waste Management subindustry, Ping Ho Environmental Technology 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.
Ping Ho Environmental Technology Co Operating Margin % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Ping Ho Environmental Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ping Ho Environmental Technology Co's Operating Margin % falls into.
Ping Ho Environmental Technology 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.
Ping Ho Environmental Technology Co (TPE:6771) has a Operating Margin % of 21.23% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Ping Ho Environmental Technology Co and its competitors. This is 26% below median its historical median of 28.79. Over the past decade, Ping Ho Environmental Technology Co's Operating Margin % has ranged from 25.55 to 35.27. According to the industry distribution chart, Ping Ho Environmental Technology Co ranks #33 out of 239 companies in the Waste Management industry, placing it in the top 13.8%.
Is Ping Ho Environmental Technology Co's Operating Margin % too high?
Ping Ho Environmental Technology Co's current Operating Margin % of 21.23% is 26% below median its 10-year median of 28.79. Over the past 10 years, this metric has ranged from a low of 25.55 to a high of 35.27. The Waste Management industry median Operating Margin % is 6.55. Ping Ho Environmental Technology Co's value of 21.23% is 224.1% above this industry median. Based on the distribution chart, Ping Ho Environmental Technology Co ranks #33 out of 239 companies in the Waste Management industry, which is in the top quartile — a strong position relative to peers. Overall, Ping Ho Environmental Technology Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ping Ho Environmental Technology Co's Operating Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Ping Ho Environmental Technology Co ranks #33 out of 239 companies for Operating Margin %. This places Ping Ho Environmental Technology Co in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.55. Ping Ho Environmental Technology Co's value of 21.23% is 224.1% above this benchmark. Historically, Ping Ho Environmental Technology Co's own Operating Margin % has ranged from 25.55 to 35.27 over the past decade. While the company's 10-year median is 28.79 vs. the industry median of 6.55, Ping Ho Environmental Technology 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 Waste Management company?
The median Operating Margin % among Waste Management companies is 6.55, based on 239 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. Ping Ho Environmental Technology Co's current Operating Margin % of 21.23% is 224.1% 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 Ping Ho Environmental Technology Co and its competitors. For the Waste Management industry, the median Operating Margin % is 6.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ping Ho Environmental Technology Co's current Operating Margin % is 21.23%, which is 26% below median its own 10-year median of 28.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ping Ho Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Ping Ho Environmental Technology Co (TPE:6771) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$46.14, compared to a current price of NT$39.10 — trading 15.3% below its estimated fair value. The current Operating Margin % is 21.23%, which is 26% below median its 10-year median of 28.79 and 224.1% above the Waste Management industry median of 6.55. Ping Ho Environmental Technology Co's overall GF Score™ is 76/100 with 5 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 Ping Ho Environmental Technology Co (TPE:6771), the current Operating Margin % is 21.23% 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 Ping Ho Environmental Technology Co (TPE:6771) Overvalued in 2026?
Based on GuruFocus' analysis, Ping Ho Environmental Technology Co stock appears to be undervalued.
The current stock price of NT$39.10 is trading 15.3% below its estimated GF Value™ of NT$46.14.
GuruFocus considers Ping Ho Environmental Technology Co to be Modestly Undervalued.
Key valuation signals for TPE:6771:
Operating Margin %: 21.23% (26% below median its 10-year median of 28.79)
GF Value™: NT$46.14 vs. price of NT$39.10 (15.3% below fair value)
Industry Position: 224.1% above the Waste Management median (#33 of 239)
No single metric tells the full story. See the TPE:6771 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ping Ho Environmental Technology Co Business Description
Ping Ho Environmental Technology Co Ltd is engaged in wastewater treatment business. It has patent for a regenerating coagulant which converts waste acid liquid and iron-containing sludge into special iron coagulants required for chemical. The Company derives its operating income from revenue generated by the treatment of wastewater.
76GF Score
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