Forest Water Environmental Eng'g Co (TPE:8473) 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.
Forest Water Environmental Eng'g Co Operating Margin % Related Terms
Forest Water Environmental Eng'g Co 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.
Forest Water Environmental Eng'g Co Operating Margin % Chart
TPE:8473 vs WM, RSG, WCN: Operating Margin % Comparison
For the Waste Management subindustry, Forest Water Environmental Eng'g Co'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.
Forest Water Environmental Eng'g Co Operating Margin % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Forest Water Environmental Eng'g Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Forest Water Environmental Eng'g Co's Operating Margin % falls into.
Forest Water Environmental Eng'g Co 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.
* 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.
Forest Water Environmental Eng'g Co (TPE:8473) has a Operating Margin % of 16.88% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Forest Water Environmental Eng'g Co and its competitors. This is near median its historical median of 16.62. Over the past decade, Forest Water Environmental Eng'g Co's Operating Margin % has ranged from 1.00 to 33.32. According to the industry distribution chart, Forest Water Environmental Eng'g Co ranks #58 out of 241 companies in the Waste Management industry, placing it in the top 24.1%.
Is Forest Water Environmental Eng'g Co's Operating Margin % too high?
Forest Water Environmental Eng'g Co's current Operating Margin % of 16.88% is near median its 10-year median of 16.62. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 33.32. The Waste Management industry median Operating Margin % is 6.61. Forest Water Environmental Eng'g Co's value of 16.88% is 155.4% above this industry median. Based on the distribution chart, Forest Water Environmental Eng'g Co ranks #58 out of 241 companies in the Waste Management industry, which is in the top quartile — a strong position relative to peers. Overall, Forest Water Environmental Eng'g Co has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Forest Water Environmental Eng'g Co's Operating Margin % compare to WM and RSG?
According to the Waste Management industry distribution chart, Forest Water Environmental Eng'g Co ranks #58 out of 241 companies for Operating Margin %. This places Forest Water Environmental Eng'g Co in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.61. Forest Water Environmental Eng'g Co's value of 16.88% is 155.4% above this benchmark. Historically, Forest Water Environmental Eng'g Co's own Operating Margin % has ranged from 1.00 to 33.32 over the past decade. While the company's 10-year median is 16.62 vs. the industry median of 6.61, Forest Water Environmental Eng'g Co 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 Waste Management company?
The median Operating Margin % among Waste Management companies is 6.61, based on 241 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. Forest Water Environmental Eng'g Co's current Operating Margin % of 16.88% is 155.4% 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 Forest Water Environmental Eng'g Co and its competitors. For the Waste Management industry, the median Operating Margin % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forest Water Environmental Eng'g Co's current Operating Margin % is 16.88%, which is near median its own 10-year median of 16.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forest Water Environmental Eng'g Co stock overvalued right now?
Based on GuruFocus' analysis, Forest Water Environmental Eng'g Co (TPE:8473) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$41.92, compared to a current price of NT$49.60 — trading 18.3% above its estimated fair value. The current Operating Margin % is 16.88%, which is near median its 10-year median of 16.62 and 155.4% above the Waste Management industry median of 6.61. Forest Water Environmental Eng'g Co's overall GF Score™ is 81/100 with 7 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 Forest Water Environmental Eng'g Co (TPE:8473), the current Operating Margin % is 16.88% 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 Forest Water Environmental Eng'g Co (TPE:8473) Overvalued in 2026?
Based on GuruFocus' analysis, Forest Water Environmental Eng'g Co stock appears to be overvalued.
The current stock price of NT$49.60 is trading 18.3% above its estimated GF Value™ of NT$41.92.
GuruFocus considers Forest Water Environmental Eng'g Co to be Modestly Overvalued.
Key valuation signals for TPE:8473:
Operating Margin %: 16.88% (near median its 10-year median of 16.62)
GF Value™: NT$41.92 vs. price of NT$49.60 (18.3% above fair value)
Industry Position: 155.4% above the Waste Management median (#58 of 241)
No single metric tells the full story. See the TPE:8473 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forest Water Environmental Eng'g Co Business Description
Forest Water Environmental Eng'g Co Ltd is engaged includes engineering projects for environmental protection, sewage treatment, waste treatment and recycling, and the recycling and decomposition of compostable food waste. It also provides the construction of a water purification plant, the construction of a sewage treatment plant in the scientific industrial park, and the construction of a sewage treatment plant.
81GF Score
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