MERFTSE:3168 -2.08%51 Operating Margin % is 5.52% as of Feb. 2026, which is 384% above its 10-year median of 1.14. GuruFocus rates TSE:3168 with a GF Score™ of 51/100 and a GF Value™ of 円576.69 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 841 Metals & Mining companies, MERF ranks worse than 58.5% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. MERF's Operating Income for the
six
months ended in Feb. 2026 was 円2,516 Mil. MERF's Revenue for the
six
months ended in Feb. 2026 was 円45,592 Mil. Therefore, MERF's Operating Margin % for the quarter that ended in Feb. 2026 was 5.52%.
Warning Sign:
MERF Inc operating margin has been in a 5-year decline. The average rate of decline per year is -35.8%.
The historical rank and industry rank for MERF's Operating Margin % or its related term are showing as below:
TSE:3168'
s Operating Margin % Range Over the Past 10 Years
Min: -1.38 Med: 1.14 Max: 5.15
Current: 3.29
TSE:3168's Operating Margin % is ranked worse than 58.5% of 841
companies
in the Metals & Mining industry
Industry Median: 5.79
vs TSE:3168: 3.29
MERF's 5-Year Average Operating Margin % Growth Rate was -35.80% per year.
MERF's Operating Income for the
six
months ended in Feb. 2026 was 円2,516 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円2,797 Mil.
MERF (TSE:3168) 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.
MERF Operating Margin % Related Terms
MERF Operating Margin % Historical Data
* Premium members only.
The historical data trend for MERF'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.
For the Other Industrial Metals & Mining subindustry, MERF'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.
MERF Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, MERF's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MERF'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.
MERF's Operating Margin % for the fiscal year that ended in Aug. 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.
MERF (TSE:3168) has a Operating Margin % of 5.52% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on MERF and its competitors. This is 384% above median its historical median of 1.14. According to the industry distribution chart, MERF ranks #492 out of 841 companies in the Metals & Mining industry, placing it in the top 58.5%.
Is MERF's Operating Margin % too high?
MERF's current Operating Margin % of 5.52% is 384% above median its 10-year median of 1.14. The Metals & Mining industry median Operating Margin % is 5.79. MERF's value of 5.52% is 4.7% below this industry median. Based on the distribution chart, MERF ranks #492 out of 841 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, MERF has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MERF's Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, MERF ranks #492 out of 841 companies for Operating Margin %. This places MERF in the lower half of its industry. The industry median Operating Margin % is 5.79. MERF's value of 5.52% is 4.7% below this benchmark. While the company's 10-year median is 1.14 vs. the industry median of 5.79, MERF has consistently been below 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.79, based on 841 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. MERF's current Operating Margin % of 5.52% is 4.7% below 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 MERF and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MERF's current Operating Margin % is 5.52%, which is 384% above median its own 10-year median of 1.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MERF stock overvalued right now?
Based on GuruFocus' analysis, MERF (TSE:3168) is currently considered Significantly Overvalued. The stock's GF Value™ is 円576.69, compared to a current price of 円1,271.00 — trading 120.4% above its estimated fair value. The current Operating Margin % is 5.52%, which is 384% above median its 10-year median of 1.14 and 4.7% below the Metals & Mining industry median of 5.79. MERF's overall GF Score™ is 51/100 with 4 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 MERF (TSE:3168), the current Operating Margin % is 5.52% as of Feb. 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 MERF (TSE:3168) Overvalued in 2026?
Based on GuruFocus' analysis, MERF stock appears to be overvalued.
The current stock price of 円1,271.00 is trading 120.4% above its estimated GF Value™ of 円576.69.
GuruFocus considers MERF to be Significantly Overvalued.
Key valuation signals for TSE:3168:
Operating Margin %: 5.52% (384% above median its 10-year median of 1.14)
GF Value™: 円576.69 vs. price of 円1,271.00 (120.4% above fair value)
Industry Position: 4.7% below the Metals & Mining median (#492 of 841)
No single metric tells the full story. See the TSE:3168 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MERF Inc is engaged in recycling non-ferrous metals, focusing on copper and copper alloys. Its business activities are divided into two main segments: the Ingot Business, which involves the manufacturing of copper alloy ingots, and the Metal Recycling Raw Materials Business, which is engaged in metal recycling. It is also involved in the manufacturing and selling of art and craft products segment.
51GF Score
Get the complete analysis for TSE:3168
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:3168 has been successfully added to your 
