LINE Pay TaiwanTPE:7722 +9.97%47 Operating Margin % is 4.16% as of Dec. 2025, which is 56% below its 10-year median of 9.37. GuruFocus rates TPE:7722 with a GF Score™ of 47/100. The stock has 4 warning signs investors should review. Among 2,820 Software companies, LINE Pay Taiwan ranks better than 62.2% on this metric.
LINE Pay Taiwan (TPE:7722) 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.
LINE Pay Taiwan Operating Margin % Related Terms
LINE Pay Taiwan Operating Margin % Historical Data
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The historical data trend for LINE Pay Taiwan'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:7722 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, LINE Pay Taiwan'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.
LINE Pay Taiwan Operating Margin % vs Software Industry
For the Software industry and Technology sector, LINE Pay Taiwan's Operating Margin % distribution charts can be found below:
* The bar in red indicates where LINE Pay Taiwan'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.
LINE Pay Taiwan'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.
LINE Pay Taiwan (TPE:7722) has a Operating Margin % of 4.16% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on LINE Pay Taiwan and its competitors. This is 56% below median its historical median of 9.37. According to the industry distribution chart, LINE Pay Taiwan ranks #1066 out of 2820 companies in the Software industry, placing it in the top 37.8%.
Is LINE Pay Taiwan's Operating Margin % too high?
LINE Pay Taiwan's current Operating Margin % of 4.16% is 56% below median its 10-year median of 9.37. The Software industry median Operating Margin % is 3.87. LINE Pay Taiwan's value of 4.16% is 7.6% above this industry median. Based on the distribution chart, LINE Pay Taiwan ranks #1066 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, LINE Pay Taiwan has a GF Score™ of 47/100, reflecting its overall financial health beyond just this single metric.
How does LINE Pay Taiwan's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, LINE Pay Taiwan ranks #1066 out of 2820 companies for Operating Margin %. This puts LINE Pay Taiwan in the upper half of its industry. The industry median Operating Margin % is 3.87. LINE Pay Taiwan's value of 4.16% is 7.6% above this benchmark. While the company's 10-year median is 9.37 vs. the industry median of 3.87, LINE Pay Taiwan 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 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. LINE Pay Taiwan's current Operating Margin % of 4.16% is 7.6% 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 LINE Pay Taiwan and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LINE Pay Taiwan's current Operating Margin % is 4.16%, which is 56% below median its own 10-year median of 9.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LINE Pay Taiwan stock overvalued right now?
LINE Pay Taiwan (TPE:7722) has a current Operating Margin % of 4.16%. The current Operating Margin % is 4.16%, which is 56% below median its 10-year median of 9.37 and 7.6% above the Software industry median of 3.87. LINE Pay Taiwan's overall GF Score™ is 47/100 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 LINE Pay Taiwan (TPE:7722), the current Operating Margin % is 4.16% 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.
LINE Pay Taiwan Ltd is mainly engaged in data processing services, electronic information supply services and the third-party payment services. The company's service includes Signing up to be a LINE Pay member is easy, Convenient and Secure payments, Brand New Payment Experience. The Group only has a single operating segment, which engages in payment business. The company has presence in Taiwan and Korea. The company generates majority of revenue from Taiwan.
47GF Score
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