Hon PrecisionTPE:7769 -0.95%25 Operating Margin % is 43.39% as of Dec. 2025, which is 11% above its 10-year median of 38.93. GuruFocus rates TPE:7769 with a GF Score™ of 25/100. The stock has 1 warning sign investors should review. Among 1,020 Semiconductors companies, Hon Precision ranks better than 98.63% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Hon Precision's Operating Income for the
three
months ended in Dec. 2025 was NT$4,024 Mil. Hon Precision's Revenue for the
three
months ended in Dec. 2025 was NT$9,276 Mil. Therefore, Hon Precision's Operating Margin % for the quarter that ended in Dec. 2025 was 43.39%.
The historical rank and industry rank for Hon Precision's Operating Margin % or its related term are showing as below:
TPE:7769'
s Operating Margin % Range Over the Past 10 Years
Min: 35.12 Med: 38.93 Max: 49.54
Current: 49.54
TPE:7769's Operating Margin % is ranked better than 98.63% of 1020
companies
in the Semiconductors industry
Industry Median: 5.295
vs TPE:7769: 49.54
Hon Precision's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Hon Precision's Operating Income for the
three
months ended in Dec. 2025 was NT$4,024 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was NT$14,997 Mil.
Hon Precision (TPE:7769) 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.
Hon Precision Operating Margin % Related Terms
Hon Precision Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hon Precision'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:7769 vs AMAT, LRCX, KLAC: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Hon Precision'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.
Hon Precision Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Hon Precision's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hon Precision'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.
Hon Precision'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.
Hon Precision (TPE:7769) has a Operating Margin % of 43.39% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hon Precision and its competitors. This is 11% above median its historical median of 38.93. Over the past decade, Hon Precision's Operating Margin % has ranged from 35.12 to 49.54. According to the industry distribution chart, Hon Precision ranks #14 out of 1020 companies in the Semiconductors industry, placing it in the top 1.4%.
Is Hon Precision's Operating Margin % too high?
Hon Precision's current Operating Margin % of 43.39% is 11% above median its 10-year median of 38.93. Over the past 10 years, this metric has ranged from a low of 35.12 to a high of 49.54. The Semiconductors industry median Operating Margin % is 5.30. Hon Precision's value of 43.39% is 719.5% above this industry median. Based on the distribution chart, Hon Precision ranks #14 out of 1020 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Hon Precision has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Hon Precision's Operating Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Hon Precision ranks #14 out of 1020 companies for Operating Margin %. This places Hon Precision in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.30. Hon Precision's value of 43.39% is 719.5% above this benchmark. Historically, Hon Precision's own Operating Margin % has ranged from 35.12 to 49.54 over the past decade. While the company's 10-year median is 38.93 vs. the industry median of 5.30, Hon Precision 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 5.30, based on 1,020 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. Hon Precision's current Operating Margin % of 43.39% is 719.5% 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 Hon Precision and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hon Precision's current Operating Margin % is 43.39%, which is 11% above median its own 10-year median of 38.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hon Precision stock overvalued right now?
Hon Precision (TPE:7769) has a current Operating Margin % of 43.39%. The current Operating Margin % is 43.39%, which is 11% above median its 10-year median of 38.93 and 719.5% above the Semiconductors industry median of 5.30. Hon Precision's overall GF Score™ is 25/100 with 1 warning sign 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 Hon Precision (TPE:7769), the current Operating Margin % is 43.39% 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.
Hon Precision Inc is engaged in the design, manufacture, and sales of semiconductor automation equipment. The company focuses on equipment used in integrated circuit (IC) testing and handling, including final test (FT) handlers, system-level test (SLT) handlers, burn-in ovens, and temperature control solutions, along with related equipment and services.
25GF Score
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