Yokohama Rubber CoFRA:YRB -2.00%83 Operating Margin % is 8.56% as of Mar. 2026, which is 2% below its 10-year median of 8.70. GuruFocus rates FRA:YRB with a GF Score™ of 83/100 and a GF Value™ of €24.66 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Yokohama Rubber Co ranks better than 85.96% on this metric.
Yokohama Rubber Co (FRA:YRB) 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.
Yokohama Rubber Co Operating Margin % Related Terms
Yokohama Rubber Co Operating Margin % Historical Data
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The historical data trend for Yokohama Rubber 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:YRB vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Yokohama Rubber 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.
Yokohama Rubber Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Yokohama Rubber Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Yokohama Rubber 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.
Yokohama Rubber 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.
Yokohama Rubber Co (FRA:YRB) has a Operating Margin % of 8.56% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Yokohama Rubber Co and its competitors. This is near median its historical median of 8.70. Over the past decade, Yokohama Rubber Co's Operating Margin % has ranged from 6.53 to 12.63. According to the industry distribution chart, Yokohama Rubber Co ranks #186 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 14%.
Is Yokohama Rubber Co's Operating Margin % too high?
Yokohama Rubber Co's current Operating Margin % of 8.56% is near median its 10-year median of 8.70. Over the past 10 years, this metric has ranged from a low of 6.53 to a high of 12.63. The Vehicles & Parts industry median Operating Margin % is 4.86. Yokohama Rubber Co's value of 8.56% is 76.1% above this industry median. Based on the distribution chart, Yokohama Rubber Co ranks #186 out of 1325 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Yokohama Rubber Co has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yokohama Rubber Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Yokohama Rubber Co ranks #186 out of 1325 companies for Operating Margin %. This places Yokohama Rubber Co in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.86. Yokohama Rubber Co's value of 8.56% is 76.1% above this benchmark. Historically, Yokohama Rubber Co's own Operating Margin % has ranged from 6.53 to 12.63 over the past decade. While the company's 10-year median is 8.70 vs. the industry median of 4.86, Yokohama Rubber 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. Yokohama Rubber Co's current Operating Margin % of 8.56% is 76.1% 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 Yokohama Rubber Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yokohama Rubber Co's current Operating Margin % is 8.56%, which is near median its own 10-year median of 8.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yokohama Rubber Co stock overvalued right now?
Based on GuruFocus' analysis, Yokohama Rubber Co (FRA:YRB) is currently considered Significantly Overvalued. The stock's GF Value™ is €24.66, compared to a current price of €39.20 — trading 59% above its estimated fair value. The current Operating Margin % is 8.56%, which is near median its 10-year median of 8.70 and 76.1% above the Vehicles & Parts industry median of 4.86. Yokohama Rubber Co's overall GF Score™ is 83/100 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 Yokohama Rubber Co (FRA:YRB), the current Operating Margin % is 8.56% 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 Yokohama Rubber Co (FRA:YRB) Overvalued in 2026?
Based on GuruFocus' analysis, Yokohama Rubber Co stock appears to be overvalued.
The current stock price of €39.20 is trading 59% above its estimated GF Value™ of €24.66.
GuruFocus considers Yokohama Rubber Co to be Significantly Overvalued.
Key valuation signals for FRA:YRB:
Operating Margin %: 8.56% (near median its 10-year median of 8.70)
GF Value™: €24.66 vs. price of €39.20 (59% above fair value)
Industry Position: 76.1% above the Vehicles & Parts median (#186 of 1325)
No single metric tells the full story. See the FRA:YRB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yokohama Rubber Co Ltd makes and sells rubber tires, wheels, and other components in two primary segments based on product type: The tires segment, which generates the majority of revenue, sells rubber tires and wheels for automobiles under the Yokohama and Advan brand names; the multiple businesses segment sells hose and couplings, conveyor belts, marine hoses, pneumatic genders, sealants and adhesives, aerospace components, and electronic materials. The majority of revenue comes from Japan.
83GF Score
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