Brother IndustriesBRTHF +0.09%75 Operating Margin % is 6.53% as of Mar. 2026, which is 27% below its 10-year median of 8.98. GuruFocus rates BRTHF with a GF Score™ of 75/100 and a GF Value™ of $16.32 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,038 Industrial Products companies, Brother Industries ranks better than 60.43% 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.
Brother Industries Operating Margin % Related Terms
Brother Industries Operating Margin % Historical Data
* Premium members only.
The historical data trend for Brother Industries'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.
For the Business Equipment & Supplies subindustry, Brother Industries'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.
Brother Industries Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Brother Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Brother Industries'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.
Brother Industries's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Brother Industries (BRTHF) has a Operating Margin % of 6.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Brother Industries and its competitors. This is 27% below median its historical median of 8.98. Over the past decade, Brother Industries' Operating Margin % has ranged from 6.05 to 12.03. According to the industry distribution chart, Brother Industries ranks #1202 out of 3038 companies in the Industrial Products industry, placing it in the top 39.6%.
Is Brother Industries' Operating Margin % too high?
Brother Industries' current Operating Margin % of 6.53% is 27% below median its 10-year median of 8.98. Over the past 10 years, this metric has ranged from a low of 6.05 to a high of 12.03. The Industrial Products industry median Operating Margin % is 6.53. Brother Industries' value of 6.53% is 0% at this industry median. Based on the distribution chart, Brother Industries ranks #1202 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Brother Industries has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Brother Industries' Operating Margin % compare to competitors?
According to the Industrial Products industry distribution chart, Brother Industries ranks #1202 out of 3038 companies for Operating Margin %. This puts Brother Industries in the upper half of its industry. The industry median Operating Margin % is 6.53. Brother Industries' value of 6.53% is 0% at this benchmark. Historically, Brother Industries' own Operating Margin % has ranged from 6.05 to 12.03 over the past decade. While the company's 10-year median is 8.98 vs. the industry median of 6.53, Brother Industries has consistently been at 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Brother Industries's current Operating Margin % of 6.53% is 0% at 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 Brother Industries and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brother Industries's current Operating Margin % is 6.53%, which is 27% below median its own 10-year median of 8.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brother Industries stock overvalued right now?
Based on GuruFocus' analysis, Brother Industries (BRTHF) is currently considered Significantly Overvalued. The stock's GF Value™ is $16.32, compared to a current price of $21.51 — trading 31.8% above its estimated fair value. The current Operating Margin % is 6.53%, which is 27% below median its 10-year median of 8.98 and 0% at the Industrial Products industry median of 6.53. Brother Industries' overall GF Score™ is 75/100 with 5 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 Brother Industries (BRTHF), the current Operating Margin % is 6.53% 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 Brother Industries (BRTHF) Overvalued in 2026?
Based on GuruFocus' analysis, Brother Industries stock appears to be overvalued.
The current stock price of $21.51 is trading 31.8% above its estimated GF Value™ of $16.32.
GuruFocus considers Brother Industries to be Significantly Overvalued.
Key valuation signals for BRTHF:
Operating Margin %: 6.53% (27% below median its 10-year median of 8.98)
GF Value™: $16.32 vs. price of $21.51 (31.8% above fair value)
Industry Position: 0% at the Industrial Products median (#1202 of 3038)
No single metric tells the full story. See the BRTHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brother Industries Ltd is a Japan-based company mainly engaged in producing and selling office equipment, printing solutions, and related supplies. The company operates through seven segments. The Domino segment covers industrial printing equipment, while the Machinery segment handles machine tools, industrial sewing machines, and garment printers. The Network and Content segment involves karaoke equipment and IT systems, and the Nissei segment produces reducers and gears. The Others segment includes new construction and renovation of buildings, and investment in information systems. The Personal and Home segment makes household sewing machines, and Printing and Solutions focuses on telecommunications and printing equipment. It generates majority revenue from Printing & Solutions segment.
75GF Score
Get the complete analysis for BRTHF
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BRTHF has been successfully added to your 
