Aichi ElectricNGO:6623 -2.02%67 Operating Margin % is 8.69% as of Mar. 2026, which is 32% above its 10-year median of 6.57. GuruFocus rates NGO:6623 with a GF Score™ of 67/100 and a GF Value™ of 円4,869.52 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,038 Industrial Products companies, Aichi Electric ranks better than 60.01% on this metric.
Aichi Electric operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Aichi Electric's Operating Margin % or its related term are showing as below:
NGO:6623'
s Operating Margin % Range Over the Past 10 Years
Min: 3.73 Med: 6.57 Max: 9.04
Current: 8.62
NGO:6623's Operating Margin % is ranked better than 60.01% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs NGO:6623: 8.62
Aichi Electric's 5-Year Average Operating Margin % Growth Rate was 6.60% per year.
Aichi Electric (NGO:6623) 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.
Aichi Electric Operating Margin % Related Terms
Aichi Electric Operating Margin % Historical Data
* Premium members only.
The historical data trend for Aichi Electric'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.
NGO:6623 vs VRT, BE: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Aichi Electric'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.
Aichi Electric Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Aichi Electric's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aichi Electric'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.
Aichi Electric'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.
Aichi Electric (NGO:6623) has a Operating Margin % of 8.69% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Aichi Electric and its competitors. This is 32% above median its historical median of 6.57. Over the past decade, Aichi Electric's Operating Margin % has ranged from 3.73 to 9.04. According to the industry distribution chart, Aichi Electric ranks #1215 out of 3038 companies in the Industrial Products industry, placing it in the top 40%.
Is Aichi Electric's Operating Margin % too high?
Aichi Electric's current Operating Margin % of 8.69% is 32% above median its 10-year median of 6.57. Over the past 10 years, this metric has ranged from a low of 3.73 to a high of 9.04. The Industrial Products industry median Operating Margin % is 6.53. Aichi Electric's value of 8.69% is 33.1% above this industry median. Based on the distribution chart, Aichi Electric ranks #1215 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Aichi Electric has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aichi Electric's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Aichi Electric ranks #1215 out of 3038 companies for Operating Margin %. This puts Aichi Electric in the upper half of its industry. The industry median Operating Margin % is 6.53. Aichi Electric's value of 8.69% is 33.1% above this benchmark. Historically, Aichi Electric's own Operating Margin % has ranged from 3.73 to 9.04 over the past decade. While the company's 10-year median is 6.57 vs. the industry median of 6.53, Aichi Electric 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Aichi Electric's current Operating Margin % of 8.69% is 33.1% 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 Aichi Electric and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aichi Electric's current Operating Margin % is 8.69%, which is 32% above median its own 10-year median of 6.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aichi Electric stock overvalued right now?
Based on GuruFocus' analysis, Aichi Electric (NGO:6623) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,869.52, compared to a current price of 円9,210.00 — trading 89.1% above its estimated fair value. The current Operating Margin % is 8.69%, which is 32% above median its 10-year median of 6.57 and 33.1% above the Industrial Products industry median of 6.53. Aichi Electric's overall GF Score™ is 67/100 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 Aichi Electric (NGO:6623), the current Operating Margin % is 8.69% 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 Aichi Electric (NGO:6623) Overvalued in 2026?
Based on GuruFocus' analysis, Aichi Electric stock appears to be overvalued.
The current stock price of 円9,210.00 is trading 89.1% above its estimated GF Value™ of 円4,869.52.
GuruFocus considers Aichi Electric to be Significantly Overvalued.
Key valuation signals for NGO:6623:
Operating Margin %: 8.69% (32% above median its 10-year median of 6.57)
GF Value™: 円4,869.52 vs. price of 円9,210.00 (89.1% above fair value)
Industry Position: 33.1% above the Industrial Products median (#1215 of 3038)
No single metric tells the full story. See the NGO:6623 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aichi Electric Co., Ltd is engaged in providing electric power products in Japan. The company's products offerings are A transformer, Motor, Applied equipment, Plant equipment, Power conversion equipment, and others. Its segments include: Power Equipment; and Rotating Machines.
67GF Score
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