SECOM CoSOMLF 79 Operating Margin % is 14.30% as of Mar. 2026, which is 10% above its 10-year median of 13.03. GuruFocus rates SOMLF with a GF Score™ of 79/100 and a GF Value™ of $36.09 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,067 Business Services companies, SECOM Co ranks better than 72.91% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SECOM Co's Operating Income for the
three
months ended in Mar. 2026 was $313 Mil. SECOM Co's Revenue for the
three
months ended in Mar. 2026 was $2,187 Mil. Therefore, SECOM Co's Operating Margin % for the quarter that ended in Mar. 2026 was 14.30%.
Warning Sign:
SECOM Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for SECOM Co's Operating Margin % or its related term are showing as below:
SOMLF'
s Operating Margin % Range Over the Past 10 Years
Min: 12.03 Med: 13.03 Max: 14.12
Current: 12.76
SOMLF's Operating Margin % is ranked better than 72.91% of 1067
companies
in the Business Services industry
Industry Median: 6.3
vs SOMLF: 12.76
SECOM Co's 5-Year Average Operating Margin % Growth Rate was -1.60% per year.
SECOM Co's Operating Income for the
three
months ended in Mar. 2026 was $313 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $1,051 Mil.
SECOM Co (OTCPK:SOMLF) 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.
SECOM Co Operating Margin % Related Terms
SECOM Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for SECOM 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.
SOMLF vs ALLE, MSA, ADT: Operating Margin % Comparison
For the Security & Protection Services subindustry, SECOM 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.
SECOM Co Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, SECOM Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SECOM 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.
SECOM 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.
SECOM Co (SOMLF) has a Operating Margin % of 14.30% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SECOM Co and its competitors. This is 10% above median its historical median of 13.03. Over the past decade, SECOM Co's Operating Margin % has ranged from 12.03 to 14.12. According to the industry distribution chart, SECOM Co ranks #289 out of 1067 companies in the Business Services industry, placing it in the top 27.1%.
Is SECOM Co's Operating Margin % too high?
SECOM Co's current Operating Margin % of 14.30% is 10% above median its 10-year median of 13.03. Over the past 10 years, this metric has ranged from a low of 12.03 to a high of 14.12. The Business Services industry median Operating Margin % is 6.30. SECOM Co's value of 14.30% is 127% above this industry median. Based on the distribution chart, SECOM Co ranks #289 out of 1067 companies in the Business Services industry, which is above the industry midpoint. Overall, SECOM Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SECOM Co's Operating Margin % compare to ALLE and MSA?
According to the Business Services industry distribution chart, SECOM Co ranks #289 out of 1067 companies for Operating Margin %. This puts SECOM Co in the upper half of its industry. The industry median Operating Margin % is 6.30. SECOM Co's value of 14.30% is 127% above this benchmark. Historically, SECOM Co's own Operating Margin % has ranged from 12.03 to 14.12 over the past decade. While the company's 10-year median is 13.03 vs. the industry median of 6.30, SECOM 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.30, based on 1,067 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. SECOM Co's current Operating Margin % of 14.30% is 127% 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 SECOM Co and its competitors. For the Business Services industry, the median Operating Margin % is 6.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SECOM Co's current Operating Margin % is 14.30%, which is 10% above median its own 10-year median of 13.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SECOM Co stock overvalued right now?
Based on GuruFocus' analysis, SECOM Co (SOMLF) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.09, compared to a current price of $40.05 — trading 11% above its estimated fair value. The current Operating Margin % is 14.30%, which is 10% above median its 10-year median of 13.03 and 127% above the Business Services industry median of 6.30. SECOM Co's overall GF Score™ is 79/100 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 SECOM Co (SOMLF), the current Operating Margin % is 14.30% 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 SECOM Co (SOMLF) Overvalued in 2026?
Based on GuruFocus' analysis, SECOM Co stock appears to be overvalued.
The current stock price of $40.05 is trading 11% above its estimated GF Value™ of $36.09.
GuruFocus considers SECOM Co to be Modestly Overvalued.
Key valuation signals for SOMLF:
Operating Margin %: 14.30% (10% above median its 10-year median of 13.03)
GF Value™: $36.09 vs. price of $40.05 (11% above fair value)
Industry Position: 127% above the Business Services median (#289 of 1067)
No single metric tells the full story. See the SOMLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SECOM Co Ltd is a provider of security services and surveillance systems. The company operates seven business segments. BPO ICT segment provides information security, disaster response, data center, and EPO services. Disaster Prevention supplies fire alarms, extinguishing systems, and other equipment for offices, plants, tunnels, cultural properties, ships, and homes. Geospatial Information Services offers mapping and related services to governments in Japan and abroad. Insurance designs products reflecting risk reduction and specialized health coverage. Medical Services covers home care, nursing, senior residences, medical records, and equipment sales. Security Services delivers centralized systems for safety and monitoring. Others include real estate leasing and construction support.
79GF Score
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