Advanced Power ElectronicsTPE:8261 +3.65%72 Operating Margin % is 25.66% as of Mar. 2026, which is 179% above its 10-year median of 9.19. GuruFocus rates TPE:8261 with a GF Score™ of 72/100 and a GF Value™ of NT$95.83 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,023 Semiconductors companies, Advanced Power Electronics ranks better than 90.42% on this metric.
Advanced Power Electronics (TPE:8261) 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.
Advanced Power Electronics Operating Margin % Related Terms
Advanced Power Electronics 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.
Advanced Power Electronics Operating Margin % Chart
TPE:8261 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Advanced Power Electronics'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.
Advanced Power Electronics Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Advanced Power Electronics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Advanced Power Electronics's Operating Margin % falls into.
Advanced Power Electronics 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.
Advanced Power Electronics'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.
Advanced Power Electronics (TPE:8261) has a Operating Margin % of 25.66% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Advanced Power Electronics and its competitors. This is 179% above median its historical median of 9.19. Over the past decade, Advanced Power Electronics' Operating Margin % has ranged from 1.59 to 25.66. According to the industry distribution chart, Advanced Power Electronics ranks #98 out of 1023 companies in the Semiconductors industry, placing it in the top 9.6%.
Is Advanced Power Electronics' Operating Margin % too high?
Advanced Power Electronics' current Operating Margin % of 25.66% is 179% above median its 10-year median of 9.19. Over the past 10 years, this metric has ranged from a low of 1.59 to a high of 25.66. The Semiconductors industry median Operating Margin % is 5.24. Advanced Power Electronics' value of 25.66% is 389.7% above this industry median. Based on the distribution chart, Advanced Power Electronics ranks #98 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Advanced Power Electronics has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Power Electronics' Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Advanced Power Electronics ranks #98 out of 1023 companies for Operating Margin %. This places Advanced Power Electronics in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Advanced Power Electronics' value of 25.66% is 389.7% above this benchmark. Historically, Advanced Power Electronics' own Operating Margin % has ranged from 1.59 to 25.66 over the past decade. While the company's 10-year median is 9.19 vs. the industry median of 5.24, Advanced Power Electronics 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 5.24, based on 1,023 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. Advanced Power Electronics's current Operating Margin % of 25.66% is 389.7% 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 Advanced Power Electronics and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Power Electronics's current Operating Margin % is 25.66%, which is 179% above median its own 10-year median of 9.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Power Electronics stock overvalued right now?
Based on GuruFocus' analysis, Advanced Power Electronics (TPE:8261) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$95.83, compared to a current price of NT$255.50 — trading 166.6% above its estimated fair value. The current Operating Margin % is 25.66%, which is 179% above median its 10-year median of 9.19 and 389.7% above the Semiconductors industry median of 5.24. Advanced Power Electronics' overall GF Score™ is 72/100 with 6 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 Advanced Power Electronics (TPE:8261), the current Operating Margin % is 25.66% as of Mar. 2026. 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 Advanced Power Electronics (TPE:8261) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Power Electronics stock appears to be overvalued.
The current stock price of NT$255.50 is trading 166.6% above its estimated GF Value™ of NT$95.83.
GuruFocus considers Advanced Power Electronics to be Significantly Overvalued.
Key valuation signals for TPE:8261:
Operating Margin %: 25.66% (179% above median its 10-year median of 9.19)
GF Value™: NT$95.83 vs. price of NT$255.50 (166.6% above fair value)
Industry Position: 389.7% above the Semiconductors median (#98 of 1023)
No single metric tells the full story. See the TPE:8261 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Power Electronics Corp, formerly Advance Power Electronics Co Ltd provides total solutions for new power requirements in MOSFETs, and IGBTs in Taiwan. It is mainly engaged in mainly deals with the design, testing, and trading, among others, of electronic elements, such as integrated circuits and semi-conductors. Geographically, the company operates in Taiwan, China and Others, of which it derives maximum revenue from Taiwan. The products of the company include: Power Mosfets; Super Junction; and Automotive. The company's products are broadly applied in the computing, consumer electronics, display, communications and industrial segments.
72GF Score
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