Merida Industry Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Merida Industry Co (TPE:9914) 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.
Merida Industry Co Operating Margin % Related Terms
Merida Industry Co Operating Margin % Historical Data
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The historical data trend for Merida Industry Co'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:9914 vs AS, HAS, LTH: Operating Margin % Comparison
For the Leisure subindustry, Merida Industry 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.
Merida Industry Co Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Merida Industry Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Merida Industry Co'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.
Merida Industry Co'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.
Merida Industry Co (TPE:9914) has a Operating Margin % of -0.80% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Merida Industry Co and its competitors. Over the past decade, Merida Industry Co's Operating Margin % has ranged from 4.59 to 11.17. According to the industry distribution chart, Merida Industry Co ranks #491 out of 844 companies in the Travel & Leisure industry, placing it in the top 58.2%.
Is Merida Industry Co's Operating Margin % too high?
Merida Industry Co's current Operating Margin % is -0.80%. Over the past 10 years, this metric has ranged from a low of 4.59 to a high of 11.17. Based on the distribution chart, Merida Industry Co ranks #491 out of 844 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Merida Industry Co has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Merida Industry Co's Operating Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Merida Industry Co ranks #491 out of 844 companies for Operating Margin %. This places Merida Industry Co in the lower half of its industry. The industry median Operating Margin % is 8.14. Historically, Merida Industry Co's own Operating Margin % has ranged from 4.59 to 11.17 over the past decade. 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 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. 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 Merida Industry Co and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merida Industry Co's current Operating Margin % is -0.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merida Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Merida Industry Co (TPE:9914) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$136.73, compared to a current price of NT$72.80 — trading 46.8% below its estimated fair value. The current Operating Margin % is -0.80%. Merida Industry Co's overall GF Score™ is 67/100 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 Merida Industry Co (TPE:9914), the current Operating Margin % is -0.80% 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.
Is Merida Industry Co (TPE:9914) Overvalued in 2026?
Based on GuruFocus' analysis, Merida Industry Co stock appears to be undervalued.
The current stock price of NT$72.80 is trading 46.8% below its estimated GF Value™ of NT$136.73.
GuruFocus considers Merida Industry Co to be Significantly Undervalued.
Key valuation signals for TPE:9914:
Operating Margin %: -0.80%
GF Value™: NT$136.73 vs. price of NT$72.80 (46.8% below fair value)
No single metric tells the full story. See the TPE:9914 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merida Industry Co Ltd is a manufacturer and distributor of bicycles and bicycle-related components, domiciled in Taiwan. The company produces bicycles for both recreational and professional use. Products include mountain bicycles, road and racing bicycles, bicycle motocross, or BMX, folding bicycles, children and youth bicycles, electric bicycles, helmets, components, and related parts and accessories. It distributes bicycles and components both domestically and internationally, and products are largely sold under the Merida brand name.
67GF Score
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