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RP Optical LabXTAE:RPOL -7.84%16 Operating Margin % is 10.39% as of Mar. 2026, which is 53% below its 10-year median of 22.31. GuruFocus rates XTAE:RPOL with a GF Score™ of 16/100. The stock has 4 warning signs investors should review. Among 2,475 Hardware companies, RP Optical Lab ranks better than 87.96% on this metric.
RP Optical Lab (XTAE:RPOL) 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.
RP Optical Lab Operating Margin % Related Terms
RP Optical Lab Operating Margin % Historical Data
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The historical data trend for RP Optical Lab'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.
XTAE:RPOL vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, RP Optical Lab'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.
RP Optical Lab Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, RP Optical Lab's Operating Margin % distribution charts can be found below:
* The bar in red indicates where RP Optical Lab'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.
RP Optical Lab'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.
RP Optical Lab (XTAE:RPOL) has a Operating Margin % of 10.39% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on RP Optical Lab and its competitors. This is 53% below median its historical median of 22.31. Over the past decade, RP Optical Lab's Operating Margin % has ranged from 16.21 to 32.89. According to the industry distribution chart, RP Optical Lab ranks #298 out of 2475 companies in the Hardware industry, placing it in the top 12%.
Is RP Optical Lab's Operating Margin % too high?
RP Optical Lab's current Operating Margin % of 10.39% is 53% below median its 10-year median of 22.31. Over the past 10 years, this metric has ranged from a low of 16.21 to a high of 32.89. The Hardware industry median Operating Margin % is 3.84. RP Optical Lab's value of 10.39% is 170.6% above this industry median. Based on the distribution chart, RP Optical Lab ranks #298 out of 2475 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, RP Optical Lab has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does RP Optical Lab's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, RP Optical Lab ranks #298 out of 2475 companies for Operating Margin %. This places RP Optical Lab in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.84. RP Optical Lab's value of 10.39% is 170.6% above this benchmark. Historically, RP Optical Lab's own Operating Margin % has ranged from 16.21 to 32.89 over the past decade. While the company's 10-year median is 22.31 vs. the industry median of 3.84, RP Optical Lab 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 3.84, based on 2,475 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. RP Optical Lab's current Operating Margin % of 10.39% is 170.6% 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 RP Optical Lab and its competitors. For the Hardware industry, the median Operating Margin % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RP Optical Lab's current Operating Margin % is 10.39%, which is 53% below median its own 10-year median of 22.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RP Optical Lab stock overvalued right now?
RP Optical Lab (XTAE:RPOL) has a current Operating Margin % of 10.39%. The current Operating Margin % is 10.39%, which is 53% below median its 10-year median of 22.31 and 170.6% above the Hardware industry median of 3.84. RP Optical Lab's overall GF Score™ is 16/100 with 4 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 RP Optical Lab (XTAE:RPOL), the current Operating Margin % is 10.39% 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.
RP Optical Lab Ltd is engaged in developing and producing Electro-Optical modules. It is in the field of thermal imaging and is involved in the defense, homeland security, medical, and commercial markets. Its products and services are Opto-Mechanical Design, Lenses, Video Engine, Cameras & Cores, and Multi-Sensor Systems.
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