Nihon Dengi CoTSE:1723 +0.39%83 Operating Margin % is 23.70% as of Mar. 2026, which is 78% above its 10-year median of 13.30. GuruFocus rates TSE:1723 with a GF Score™ of 83/100 and a GF Value™ of 円955.50 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,472 Hardware companies, Nihon Dengi Co ranks better than 95.75% on this metric.
Nihon Dengi Co (TSE:1723) 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.
Nihon Dengi Co Operating Margin % Related Terms
Nihon Dengi Co Operating Margin % Historical Data
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The historical data trend for Nihon Dengi 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.
TSE:1723 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Nihon Dengi 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.
Nihon Dengi Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Nihon Dengi Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nihon Dengi 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.
Nihon Dengi 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.
Nihon Dengi Co (TSE:1723) has a Operating Margin % of 23.70% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nihon Dengi Co and its competitors. This is 78% above median its historical median of 13.30. Over the past decade, Nihon Dengi Co's Operating Margin % has ranged from 10.19 to 25.50. According to the industry distribution chart, Nihon Dengi Co ranks #105 out of 2472 companies in the Hardware industry, placing it in the top 4.2%.
Is Nihon Dengi Co's Operating Margin % too high?
Nihon Dengi Co's current Operating Margin % of 23.70% is 78% above median its 10-year median of 13.30. Over the past 10 years, this metric has ranged from a low of 10.19 to a high of 25.50. The Hardware industry median Operating Margin % is 3.81. Nihon Dengi Co's value of 23.70% is 522% above this industry median. Based on the distribution chart, Nihon Dengi Co ranks #105 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Nihon Dengi Co has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Dengi Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Nihon Dengi Co ranks #105 out of 2472 companies for Operating Margin %. This places Nihon Dengi Co in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. Nihon Dengi Co's value of 23.70% is 522% above this benchmark. Historically, Nihon Dengi Co's own Operating Margin % has ranged from 10.19 to 25.50 over the past decade. While the company's 10-year median is 13.30 vs. the industry median of 3.81, Nihon Dengi 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 3.81, 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. Nihon Dengi Co's current Operating Margin % of 23.70% is 522% 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 Nihon Dengi Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Dengi Co's current Operating Margin % is 23.70%, which is 78% above median its own 10-year median of 13.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Dengi Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Dengi Co (TSE:1723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円955.50, compared to a current price of 円2,305.00 — trading 141.2% above its estimated fair value. The current Operating Margin % is 23.70%, which is 78% above median its 10-year median of 13.30 and 522% above the Hardware industry median of 3.81. Nihon Dengi Co's overall GF Score™ is 83/100 with 1 warning sign 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 Nihon Dengi Co (TSE:1723), the current Operating Margin % is 23.70% 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 Nihon Dengi Co (TSE:1723) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Dengi Co stock appears to be overvalued.
The current stock price of 円2,305.00 is trading 141.2% above its estimated GF Value™ of 円955.50.
GuruFocus considers Nihon Dengi Co to be Significantly Overvalued.
Key valuation signals for TSE:1723:
Operating Margin %: 23.70% (78% above median its 10-year median of 13.30)
GF Value™: 円955.50 vs. price of 円2,305.00 (141.2% above fair value)
Industry Position: 522% above the Hardware median (#105 of 2472)
No single metric tells the full story. See the TSE:1723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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