Taiwan CogenerationTPE:8926 -0.36%75 Operating Margin % is 5.65% as of Dec. 2025, which is at its 10-year median of 5.65. GuruFocus rates TPE:8926 with a GF Score™ of 75/100 and a GF Value™ of NT$43.26 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 1,767 Construction companies, Taiwan Cogeneration ranks better than 58.29% 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.
Taiwan Cogeneration Operating Margin % Related Terms
Taiwan Cogeneration Operating Margin % Historical Data
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The historical data trend for Taiwan Cogeneration'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:8926 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Taiwan Cogeneration'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.
Taiwan Cogeneration Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Taiwan Cogeneration's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Cogeneration'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.
Taiwan Cogeneration'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.
Taiwan Cogeneration (TPE:8926) has a Operating Margin % of 5.65% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Taiwan Cogeneration and its competitors. This is near median its historical median of 5.65. Over the past decade, Taiwan Cogeneration's Operating Margin % has ranged from 0.41 to 13.03. According to the industry distribution chart, Taiwan Cogeneration ranks #737 out of 1767 companies in the Construction industry, placing it in the top 41.7%.
Is Taiwan Cogeneration's Operating Margin % too high?
Taiwan Cogeneration's current Operating Margin % of 5.65% is near median its 10-year median of 5.65. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 13.03. The Construction industry median Operating Margin % is 5.89. Taiwan Cogeneration's value of 5.65% is 4.1% below this industry median. Based on the distribution chart, Taiwan Cogeneration ranks #737 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Taiwan Cogeneration has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Cogeneration's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Taiwan Cogeneration ranks #737 out of 1767 companies for Operating Margin %. This puts Taiwan Cogeneration in the upper half of its industry. The industry median Operating Margin % is 5.89. Taiwan Cogeneration's value of 5.65% is 4.1% below this benchmark. Historically, Taiwan Cogeneration's own Operating Margin % has ranged from 0.41 to 13.03 over the past decade. While the company's 10-year median is 5.65 vs. the industry median of 5.89, Taiwan Cogeneration has consistently been below 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Taiwan Cogeneration's current Operating Margin % of 5.65% is 4.1% below 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 Taiwan Cogeneration and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Cogeneration's current Operating Margin % is 5.65%, which is near median its own 10-year median of 5.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Cogeneration stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Cogeneration (TPE:8926) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$43.26, compared to a current price of NT$81.90 — trading 89.3% above its estimated fair value. The current Operating Margin % is 5.65%, which is near median its 10-year median of 5.65 and 4.1% below the Construction industry median of 5.89. Taiwan Cogeneration's overall GF Score™ is 75/100 with 12 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 Taiwan Cogeneration (TPE:8926), the current Operating Margin % is 5.65% 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 Taiwan Cogeneration (TPE:8926) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Cogeneration stock appears to be overvalued.
The current stock price of NT$81.90 is trading 89.3% above its estimated GF Value™ of NT$43.26.
GuruFocus considers Taiwan Cogeneration to be Significantly Overvalued.
Key valuation signals for TPE:8926:
Operating Margin %: 5.65% (near median its 10-year median of 5.65)
GF Value™: NT$43.26 vs. price of NT$81.90 (89.3% above fair value)
Industry Position: 4.1% below the Construction median (#737 of 1767)
No single metric tells the full story. See the TPE:8926 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Cogeneration Corp is engaged in engineering, planning, design, procurement, installation, construction and financial planning of cogeneration systems, environmental protection and fuel procurement for cogeneration systems and related businesses. The Corporation also operates and manages cogeneration plants, provides research and development, technical and consultation services related to cogeneration, and manufactures, assembles, sells, leases, installs and repairs cogeneration equipment. In addition, it invests in cogeneration plants, trades related equipment, engages in power generation businesses other than utility, and performs electric equipment installation. Its revenues are generated from sales from cogeneration plants and revenue from consulting and construction services.
75GF Score
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