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Showa Manufacturing CoFSE:5953 49 Operating Margin % is 11.47% as of Mar. 2026, which is 256% above its 10-year median of 3.22. GuruFocus rates FSE:5953 with a GF Score™ of 49/100 and a GF Value™ of 円3,429.87 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,474 Hardware companies, Showa Manufacturing Co ranks better than 71.54% on this metric.
Showa Manufacturing Co (FSE:5953) 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.
Showa Manufacturing Co Operating Margin % Related Terms
Showa Manufacturing Co Operating Margin % Historical Data
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The historical data trend for Showa 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.
FSE:5953 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Showa 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.
Showa Manufacturing Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Showa Manufacturing Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Showa Manufacturing Co's Operating Margin % falls into.
Showa 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.
Showa 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.
Showa Manufacturing Co (FSE:5953) has a Operating Margin % of 11.47% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Showa Manufacturing Co and its competitors. This is 256% above median its historical median of 3.22. According to the industry distribution chart, Showa Manufacturing Co ranks #704 out of 2474 companies in the Hardware industry, placing it in the top 28.5%.
Is Showa Manufacturing Co's Operating Margin % too high?
Showa Manufacturing Co's current Operating Margin % of 11.47% is 256% above median its 10-year median of 3.22. The Hardware industry median Operating Margin % is 3.86. Showa Manufacturing Co's value of 11.47% is 197.5% above this industry median. Based on the distribution chart, Showa Manufacturing Co ranks #704 out of 2474 companies in the Hardware industry, which is above the industry midpoint. Overall, Showa Manufacturing Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Showa Manufacturing Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Showa Manufacturing Co ranks #704 out of 2474 companies for Operating Margin %. This puts Showa Manufacturing Co in the upper half of its industry. The industry median Operating Margin % is 3.86. Showa Manufacturing Co's value of 11.47% is 197.5% above this benchmark. While the company's 10-year median is 3.22 vs. the industry median of 3.86, Showa 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 3.86, based on 2,474 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. Showa Manufacturing Co's current Operating Margin % of 11.47% is 197.5% 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 Showa Manufacturing Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa Manufacturing Co's current Operating Margin % is 11.47%, which is 256% above median its own 10-year median of 3.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Showa Manufacturing Co (FSE:5953) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,429.87, compared to a current price of 円7,200.00 — trading 109.9% above its estimated fair value. The current Operating Margin % is 11.47%, which is 256% above median its 10-year median of 3.22 and 197.5% above the Hardware industry median of 3.86. Showa Manufacturing Co's overall GF Score™ is 49/100 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 Showa Manufacturing Co (FSE:5953), the current Operating Margin % is 11.47% 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 Showa Manufacturing Co (FSE:5953) Overvalued in 2026?
Based on GuruFocus' analysis, Showa Manufacturing Co stock appears to be overvalued.
The current stock price of 円7,200.00 is trading 109.9% above its estimated GF Value™ of 円3,429.87.
GuruFocus considers Showa Manufacturing Co to be Significantly Overvalued.
Key valuation signals for FSE:5953:
Operating Margin %: 11.47% (256% above median its 10-year median of 3.22)
GF Value™: 円3,429.87 vs. price of 円7,200.00 (109.9% above fair value)
Industry Position: 197.5% above the Hardware median (#704 of 2474)
No single metric tells the full story. See the FSE:5953 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Showa Manufacturing Co Ltd manufactures and sales heat source and hot water supply products. It also provides air conditioning, environmental products, casting products, and special heat source products. Casting products include boilers which are used in jet engine parts and nuclear reactor parts, general machinery, automobiles. Special heat source product includes high-clean heat treatment furnace and ultra-thin electric heater which performs drying, baking, and annealing of PDP, LCD, OLED. The company has three reportable segments: Materials Processing Business, Materials Processing Business, and Service Engineering Business.
49GF Score
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