Mitac Digital TechnologyTPE:7821 -0.35%20 Operating Margin % is 4.80% as of Dec. 2025, which is 146% above its 10-year median of 1.95. GuruFocus rates TPE:7821 with a GF Score™ of 20/100. The stock has 2 warning signs investors should review. Among 2,471 Hardware companies, Mitac Digital Technology ranks better than 56.5% on this metric.
Mitac Digital Technology (TPE:7821) 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.
Mitac Digital Technology Operating Margin % Related Terms
Mitac Digital Technology 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:7821 vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Mitac Digital Technology'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.
Mitac Digital Technology Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Mitac Digital Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mitac Digital Technology's Operating Margin % falls into.
Mitac Digital Technology 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.
Mitac Digital Technology'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.
Mitac Digital Technology (TPE:7821) has a Operating Margin % of 4.80% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Mitac Digital Technology and its competitors. This is 146% above median its historical median of 1.95. Over the past decade, Mitac Digital Technology's Operating Margin % has ranged from 1.25 to 5.00. According to the industry distribution chart, Mitac Digital Technology ranks #1075 out of 2471 companies in the Hardware industry, placing it in the top 43.5%.
Is Mitac Digital Technology's Operating Margin % too high?
Mitac Digital Technology's current Operating Margin % of 4.80% is 146% above median its 10-year median of 1.95. Over the past 10 years, this metric has ranged from a low of 1.25 to a high of 5.00. The Hardware industry median Operating Margin % is 3.80. Mitac Digital Technology's value of 4.80% is 26.3% above this industry median. Based on the distribution chart, Mitac Digital Technology ranks #1075 out of 2471 companies in the Hardware industry, which is above the industry midpoint. Overall, Mitac Digital Technology has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Mitac Digital Technology's Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Mitac Digital Technology ranks #1075 out of 2471 companies for Operating Margin %. This puts Mitac Digital Technology in the upper half of its industry. The industry median Operating Margin % is 3.80. Mitac Digital Technology's value of 4.80% is 26.3% above this benchmark. Historically, Mitac Digital Technology's own Operating Margin % has ranged from 1.25 to 5.00 over the past decade. While the company's 10-year median is 1.95 vs. the industry median of 3.80, Mitac Digital Technology 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,471 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. Mitac Digital Technology's current Operating Margin % of 4.80% is 26.3% 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 Mitac Digital Technology and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mitac Digital Technology's current Operating Margin % is 4.80%, which is 146% above median its own 10-year median of 1.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitac Digital Technology stock overvalued right now?
Mitac Digital Technology (TPE:7821) has a current Operating Margin % of 4.80%. The current Operating Margin % is 4.80%, which is 146% above median its 10-year median of 1.95 and 26.3% above the Hardware industry median of 3.80. Mitac Digital Technology's overall GF Score™ is 20/100 with 2 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 Mitac Digital Technology (TPE:7821), the current Operating Margin % is 4.80% 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.
Mitac Digital Technology Corp is a holding company that is engaged in the development, design, manufacturing, and sales of automotive electronics, smart IoT, and industrial computer products. Geographically, the company generates maximum revenue from USA, while it also has its presence in Taiwan, Europe and Others.
20GF Score
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