Twoway CommunicationsTPE:8045 +0.66%90 Operating Margin % is 5.47% as of Dec. 2025, which is 11% below its 10-year median of 6.14. GuruFocus rates TPE:8045 with a GF Score™ of 90/100 and a GF Value™ of NT$58.93 (Fairly Valued). The stock has 8 warning signs investors should review. Among 2,471 Hardware companies, Twoway Communications ranks better than 62.73% on this metric.
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.
Twoway Communications Operating Margin % Related Terms
Twoway Communications Operating Margin % Historical Data
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The historical data trend for Twoway Communications'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:8045 vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Twoway Communications'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.
Twoway Communications Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Twoway Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Twoway Communications'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.
Twoway Communications'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.
Twoway Communications (TPE:8045) has a Operating Margin % of 5.47% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Twoway Communications and its competitors. This is 11% below median its historical median of 6.14. According to the industry distribution chart, Twoway Communications ranks #921 out of 2471 companies in the Hardware industry, placing it in the top 37.3%.
Is Twoway Communications' Operating Margin % too high?
Twoway Communications' current Operating Margin % of 5.47% is 11% below median its 10-year median of 6.14. The Hardware industry median Operating Margin % is 3.80. Twoway Communications' value of 5.47% is 43.9% above this industry median. Based on the distribution chart, Twoway Communications ranks #921 out of 2471 companies in the Hardware industry, which is above the industry midpoint. Overall, Twoway Communications has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Twoway Communications' Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Twoway Communications ranks #921 out of 2471 companies for Operating Margin %. This puts Twoway Communications in the upper half of its industry. The industry median Operating Margin % is 3.80. Twoway Communications' value of 5.47% is 43.9% above this benchmark. While the company's 10-year median is 6.14 vs. the industry median of 3.80, Twoway Communications 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. Twoway Communications's current Operating Margin % of 5.47% is 43.9% 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 Twoway Communications 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. Twoway Communications's current Operating Margin % is 5.47%, which is 11% below median its own 10-year median of 6.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Twoway Communications stock overvalued right now?
Based on GuruFocus' analysis, Twoway Communications (TPE:8045) is currently considered Fairly Valued. The stock's GF Value™ is NT$58.93, compared to a current price of NT$61.00 — trading 3.5% above its estimated fair value. The current Operating Margin % is 5.47%, which is 11% below median its 10-year median of 6.14 and 43.9% above the Hardware industry median of 3.80. Twoway Communications' overall GF Score™ is 90/100 with 8 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 Twoway Communications (TPE:8045), the current Operating Margin % is 5.47% 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 Twoway Communications (TPE:8045) Overvalued in 2026?
Based on GuruFocus' analysis, Twoway Communications stock appears to be overvalued.
The current stock price of NT$61.00 is trading 3.5% above its estimated GF Value™ of NT$58.93.
GuruFocus considers Twoway Communications to be Fairly Valued.
Key valuation signals for TPE:8045:
Operating Margin %: 5.47% (11% below median its 10-year median of 6.14)
GF Value™: NT$58.93 vs. price of NT$61.00 (3.5% above fair value)
Industry Position: 43.9% above the Hardware median (#921 of 2471)
No single metric tells the full story. See the TPE:8045 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Twoway Communications Inc is engaged in manufacturing and trading of communication products including cable TV head-ends, optical transceivers, amplifiers, connectors, and monitoring systems, as well as broadband network system planning, design, and contracting, and the installation of multimedia video equipment. The revenue of operating segments principally is derived from B-broadband internet equipment department, IOT department and department of labour and other services.
90GF Score
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