Nippon Electric Glass CoNPPEY 55 Operating Margin % is 12.37% as of Dec. 2025, which is 52% above its 10-year median of 8.12. GuruFocus rates NPPEY with a GF Score™ of 55/100 and a GF Value™ of $11.44 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,472 Hardware companies, Nippon Electric Glass Co ranks better than 76.9% on this metric.
Nippon Electric Glass Co (OTCPK:NPPEY) 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.
Nippon Electric Glass Co Operating Margin % Related Terms
Nippon Electric Glass Co Operating Margin % Historical Data
* 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.
NPPEY vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Nippon Electric Glass 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.
Nippon Electric Glass Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Nippon Electric Glass Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Electric Glass Co's Operating Margin % falls into.
Nippon Electric Glass 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.
Nippon Electric Glass 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.
Nippon Electric Glass Co (NPPEY) has a Operating Margin % of 12.37% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Electric Glass Co and its competitors. This is 52% above median its historical median of 8.12. According to the industry distribution chart, Nippon Electric Glass Co ranks #571 out of 2472 companies in the Hardware industry, placing it in the top 23.1%.
Is Nippon Electric Glass Co's Operating Margin % too high?
Nippon Electric Glass Co's current Operating Margin % of 12.37% is 52% above median its 10-year median of 8.12. The Hardware industry median Operating Margin % is 3.80. Nippon Electric Glass Co's value of 12.37% is 225.5% above this industry median. Based on the distribution chart, Nippon Electric Glass Co ranks #571 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Electric Glass Co has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Electric Glass Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Nippon Electric Glass Co ranks #571 out of 2472 companies for Operating Margin %. This places Nippon Electric Glass Co in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Nippon Electric Glass Co's value of 12.37% is 225.5% above this benchmark. While the company's 10-year median is 8.12 vs. the industry median of 3.80, Nippon Electric Glass 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 3.80, 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. Nippon Electric Glass Co's current Operating Margin % of 12.37% is 225.5% 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 Nippon Electric Glass Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Electric Glass Co's current Operating Margin % is 12.37%, which is 52% above median its own 10-year median of 8.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Electric Glass Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Electric Glass Co (NPPEY) is currently considered Significantly Overvalued. The stock's GF Value™ is $11.44, compared to a current price of $18.77 — trading 64.1% above its estimated fair value. The current Operating Margin % is 12.37%, which is 52% above median its 10-year median of 8.12 and 225.5% above the Hardware industry median of 3.80. Nippon Electric Glass Co's overall GF Score™ is 55/100 with 2 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 Nippon Electric Glass Co (NPPEY), the current Operating Margin % is 12.37% as of Dec. 2025. 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 Nippon Electric Glass Co (NPPEY) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Electric Glass Co stock appears to be overvalued.
The current stock price of $18.77 is trading 64.1% above its estimated GF Value™ of $11.44.
GuruFocus considers Nippon Electric Glass Co to be Significantly Overvalued.
Key valuation signals for NPPEY:
Operating Margin %: 12.37% (52% above median its 10-year median of 8.12)
GF Value™: $11.44 vs. price of $18.77 (64.1% above fair value)
Industry Position: 225.5% above the Hardware median (#571 of 2472)
No single metric tells the full story. See the NPPEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Electric Glass Co Ltd is in the business of the production and sale of glass products and glassmaking machinery. Its business is divided into two categories: Electronics and Information Technology, and Performance Materials and Others. The company produces glass for flat panel displays, optical devices, chemical strengthening, electronic devices, solar cells, fiber, and building materials. The company generates the majority of its sales from the electronics and information technology category.
55GF Score
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