Fast Retailing CoFRCOF +2.25%91 Operating Margin % is 18.44% as of Feb. 2026, which is 61% above its 10-year median of 11.44. GuruFocus rates FRCOF with a GF Score™ of 91/100 and a GF Value™ of $339.36 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Fast Retailing Co ranks better than 92.55% on this metric.
Fast Retailing Co (OTCPK:FRCOF) 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.
Fast Retailing Co Operating Margin % Related Terms
Fast Retailing Co Operating Margin % Historical Data
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The historical data trend for Fast Retailing 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.
FRCOF vs TJX, ROST, BURL: Operating Margin % Comparison
For the Apparel Retail subindustry, Fast Retailing 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.
Fast Retailing Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Fast Retailing Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fast Retailing 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.
Fast Retailing Co's Operating Margin % for the fiscal year that ended in Aug. 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.
Fast Retailing Co (FRCOF) has a Operating Margin % of 18.44% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fast Retailing Co and its competitors. This is 61% above median its historical median of 11.44. Over the past decade, Fast Retailing Co's Operating Margin % has ranged from 7.13 to 17.99. According to the industry distribution chart, Fast Retailing Co ranks #84 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 7.4%.
Is Fast Retailing Co's Operating Margin % too high?
Fast Retailing Co's current Operating Margin % of 18.44% is 61% above median its 10-year median of 11.44. Over the past 10 years, this metric has ranged from a low of 7.13 to a high of 17.99. The Retail - Cyclical industry median Operating Margin % is 3.91. Fast Retailing Co's value of 18.44% is 372.2% above this industry median. Based on the distribution chart, Fast Retailing Co ranks #84 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Fast Retailing Co has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fast Retailing Co's Operating Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Fast Retailing Co ranks #84 out of 1128 companies for Operating Margin %. This places Fast Retailing Co in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Fast Retailing Co's value of 18.44% is 372.2% above this benchmark. Historically, Fast Retailing Co's own Operating Margin % has ranged from 7.13 to 17.99 over the past decade. While the company's 10-year median is 11.44 vs. the industry median of 3.91, Fast Retailing 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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. Fast Retailing Co's current Operating Margin % of 18.44% is 372.2% 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 Fast Retailing Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fast Retailing Co's current Operating Margin % is 18.44%, which is 61% above median its own 10-year median of 11.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fast Retailing Co stock overvalued right now?
Based on GuruFocus' analysis, Fast Retailing Co (FRCOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $339.36, compared to a current price of $517.31 — trading 52.4% above its estimated fair value. The current Operating Margin % is 18.44%, which is 61% above median its 10-year median of 11.44 and 372.2% above the Retail - Cyclical industry median of 3.91. Fast Retailing Co's overall GF Score™ is 91/100 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 Fast Retailing Co (FRCOF), the current Operating Margin % is 18.44% as of Feb. 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 Fast Retailing Co (FRCOF) Overvalued in 2026?
Based on GuruFocus' analysis, Fast Retailing Co stock appears to be overvalued.
The current stock price of $517.31 is trading 52.4% above its estimated GF Value™ of $339.36.
GuruFocus considers Fast Retailing Co to be Significantly Overvalued.
Key valuation signals for FRCOF:
Operating Margin %: 18.44% (61% above median its 10-year median of 11.44)
GF Value™: $339.36 vs. price of $517.31 (52.4% above fair value)
Industry Position: 372.2% above the Retail - Cyclical median (#84 of 1128)
No single metric tells the full story. See the FRCOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fast Retailing is Japan's largest apparel company. It operates casualwear retail chain Uniqlo, known for its high-quality functional apparel at reasonable prices. Fast Retailing is in charge of product design and sales and outsources almost all of its production to factories in places including China, Vietnam, Bangladesh, Indonesia, and India. It is ranked the second-largest apparel company by sales globally in 2024 per Euromonitor, thanks to the expansion of Uniqlo International. As of February 2025, it ran 3,616 stores globally. Other brands in its portfolio include GU and acquired brands like Theory, Comptoir des Cotonniers, and Princesse tam.tam. The Yanai family owned a 40.86% stake in the firm as of July 2025.
91GF Score
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