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Seiko GroupFRA:89M -2.59%32 Operating Margin % is 2.35% as of Mar. 2026, which is 40% below its 10-year median of 3.92. GuruFocus rates FRA:89M with a GF Score™ of 32/100 and a GF Value™ of €13.79 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,041 Manufacturing - Apparel & Accessories companies, Seiko Group ranks better than 78.58% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Seiko Group's Operating Income for the
three
months ended in Mar. 2026 was €10 Mil. Seiko Group's Revenue for the
three
months ended in Mar. 2026 was €445 Mil. Therefore, Seiko Group's Operating Margin % for the quarter that ended in Mar. 2026 was 2.35%.
Good Sign:
Seiko Group Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Seiko Group's Operating Margin % or its related term are showing as below:
FRA:89M'
s Operating Margin % Range Over the Past 10 Years
Min: 1.08 Med: 3.92 Max: 10.66
Current: 10.66
FRA:89M's Operating Margin % is ranked better than 78.58% of 1041
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.39
vs FRA:89M: 10.66
Seiko Group's 5-Year Average Operating Margin % Growth Rate was 44.30% per year.
Seiko Group's Operating Income for the
three
months ended in Mar. 2026 was €10 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €210 Mil.
Seiko Group (FRA:89M) 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.
Seiko Group Operating Margin % Related Terms
Seiko Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Seiko Group'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.
FRA:89M vs NKE, DECK, ONON: Operating Margin % Comparison
For the Footwear & Accessories subindustry, Seiko Group'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.
Seiko Group Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Seiko Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Seiko Group'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.
Seiko Group'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.
Seiko Group (FRA:89M) has a Operating Margin % of 2.35% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Seiko Group and its competitors. This is 40% below median its historical median of 3.92. Over the past decade, Seiko Group's Operating Margin % has ranged from 1.08 to 10.66. According to the industry distribution chart, Seiko Group ranks #223 out of 1041 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 21.4%.
Is Seiko Group's Operating Margin % too high?
Seiko Group's current Operating Margin % of 2.35% is 40% below median its 10-year median of 3.92. Over the past 10 years, this metric has ranged from a low of 1.08 to a high of 10.66. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.39. Seiko Group's value of 2.35% is 46.5% below this industry median. Based on the distribution chart, Seiko Group ranks #223 out of 1041 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Seiko Group has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Seiko Group's Operating Margin % compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Seiko Group ranks #223 out of 1041 companies for Operating Margin %. This places Seiko Group in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.39. Seiko Group's value of 2.35% is 46.5% below this benchmark. Historically, Seiko Group's own Operating Margin % has ranged from 1.08 to 10.66 over the past decade. While the company's 10-year median is 3.92 vs. the industry median of 4.39, Seiko Group 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.39, based on 1,041 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. Seiko Group's current Operating Margin % of 2.35% is 46.5% 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 Seiko Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seiko Group's current Operating Margin % is 2.35%, which is 40% below median its own 10-year median of 3.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Seiko Group stock overvalued right now?
Based on GuruFocus' analysis, Seiko Group (FRA:89M) is currently considered Significantly Overvalued. The stock's GF Value™ is €13.79, compared to a current price of €56.50 — trading 309.7% above its estimated fair value. The current Operating Margin % is 2.35%, which is 40% below median its 10-year median of 3.92 and 46.5% below the Manufacturing - Apparel & Accessories industry median of 4.39. Seiko Group's overall GF Score™ is 32/100 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 Seiko Group (FRA:89M), the current Operating Margin % is 2.35% 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 Seiko Group (FRA:89M) Overvalued in 2026?
Based on GuruFocus' analysis, Seiko Group stock appears to be overvalued.
The current stock price of €56.50 is trading 309.7% above its estimated GF Value™ of €13.79.
GuruFocus considers Seiko Group to be Significantly Overvalued.
Key valuation signals for FRA:89M:
Operating Margin %: 2.35% (40% below median its 10-year median of 3.92)
GF Value™: €13.79 vs. price of €56.50 (309.7% above fair value)
Industry Position: 46.5% below the Manufacturing - Apparel & Accessories median (#223 of 1041)
No single metric tells the full story. See the FRA:89M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Seiko Group Corp is a Japanese manufacturer of watches and electronic devices. The company organizes itself into four segments, based on product type: watches, electronic devices, systems solutions, and others. The watches business, which contributes more than half of the company's revenue, manufactures men's and ladies' fashion watches. The electronic devices business, the next most significant contributor to revenue, produces components such as semiconductors, camera shutters, inkjet print heads, thermal printers, micro-batteries, and radiation-measuring equipment. Combined sales in the watches and electronic devices segments constitute the vast majority of consolidated revenue. The company derives approximately half its revenue domestically.
32GF Score
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