Murata Manufacturing CoFRA:MUR1 -7.13%72 Operating Margin % is 17.11% as of Mar. 2026, which is 2% above its 10-year median of 16.85. GuruFocus rates FRA:MUR1 with a GF Score™ of 72/100 and a GF Value™ of €19.18 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,472 Hardware companies, Murata Manufacturing Co ranks better than 86.65% on this metric.
Murata Manufacturing Co (FRA:MUR1) 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.
Murata Manufacturing Co Operating Margin % Related Terms
Murata Manufacturing Co Operating Margin % Historical Data
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The historical data trend for Murata Manufacturing 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.
FRA:MUR1 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Murata Manufacturing 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.
Murata Manufacturing Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Murata Manufacturing Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Murata Manufacturing Co's Operating Margin % falls into.
Murata Manufacturing Co Operating Margin % Calculation
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.
Murata Manufacturing Co'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.
Murata Manufacturing Co (FRA:MUR1) has a Operating Margin % of 17.11% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Murata Manufacturing Co and its competitors. This is near median its historical median of 16.85. Over the past decade, Murata Manufacturing Co's Operating Margin % has ranged from 11.90 to 23.40. According to the industry distribution chart, Murata Manufacturing Co ranks #330 out of 2472 companies in the Hardware industry, placing it in the top 13.3%.
Is Murata Manufacturing Co's Operating Margin % too high?
Murata Manufacturing Co's current Operating Margin % of 17.11% is near median its 10-year median of 16.85. Over the past 10 years, this metric has ranged from a low of 11.90 to a high of 23.40. The Hardware industry median Operating Margin % is 3.81. Murata Manufacturing Co's value of 17.11% is 349.1% above this industry median. Based on the distribution chart, Murata Manufacturing Co ranks #330 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Murata Manufacturing Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Murata Manufacturing Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Murata Manufacturing Co ranks #330 out of 2472 companies for Operating Margin %. This places Murata Manufacturing Co in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. Murata Manufacturing Co's value of 17.11% is 349.1% above this benchmark. Historically, Murata Manufacturing Co's own Operating Margin % has ranged from 11.90 to 23.40 over the past decade. While the company's 10-year median is 16.85 vs. the industry median of 3.81, Murata Manufacturing Co 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 3.81, based on 2,472 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. Murata Manufacturing Co's current Operating Margin % of 17.11% is 349.1% 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 Murata Manufacturing Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Murata Manufacturing Co's current Operating Margin % is 17.11%, which is near median its own 10-year median of 16.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Murata Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Murata Manufacturing Co (FRA:MUR1) is currently considered Significantly Overvalued. The stock's GF Value™ is €19.18, compared to a current price of €59.14 — trading 208.3% above its estimated fair value. The current Operating Margin % is 17.11%, which is near median its 10-year median of 16.85 and 349.1% above the Hardware industry median of 3.81. Murata Manufacturing Co's overall GF Score™ is 72/100 with 7 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 Murata Manufacturing Co (FRA:MUR1), the current Operating Margin % is 17.11% 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 Murata Manufacturing Co (FRA:MUR1) Overvalued in 2026?
Based on GuruFocus' analysis, Murata Manufacturing Co stock appears to be overvalued.
The current stock price of €59.14 is trading 208.3% above its estimated GF Value™ of €19.18.
GuruFocus considers Murata Manufacturing Co to be Significantly Overvalued.
Key valuation signals for FRA:MUR1:
Operating Margin %: 17.11% (near median its 10-year median of 16.85)
GF Value™: €19.18 vs. price of €59.14 (208.3% above fair value)
Industry Position: 349.1% above the Hardware median (#330 of 2472)
No single metric tells the full story. See the FRA:MUR1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Murata Manufacturing produces passive components for electronic devices. Passive components are necessary for all electronic circuits, used to enable wireless communication, store electricity and handle electric flow, remove electromagnetic noise from circuits, and so on. Thus, passive components are imperative for electronic circuits. For instance, one high-end smartphone contains more than 1,000 passive components. Murata Manufacturing is the world's leading supplier of passive components, such as MLCC and SAW filters.
72GF Score
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