Eternal Hospitality Group CoTSE:3193 +1.28%74 Operating Margin % is 5.68% as of Jan. 2026, which is 23% above its 10-year median of 4.60. GuruFocus rates TSE:3193 with a GF Score™ of 74/100 and a GF Value™ of 円4,247.22 (Significantly Undervalued). Among 365 Restaurants companies, Eternal Hospitality Group Co ranks better than 65.48% on this metric.
Eternal Hospitality Group Co (TSE:3193) 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.
Eternal Hospitality Group Co Operating Margin % Related Terms
Eternal Hospitality Group 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.
Eternal Hospitality Group Co Operating Margin % Chart
TSE:3193 vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Eternal Hospitality Group 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.
Eternal Hospitality Group Co Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Eternal Hospitality Group Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eternal Hospitality Group Co's Operating Margin % falls into.
Eternal Hospitality Group 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.
* 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.
Eternal Hospitality Group Co (TSE:3193) has a Operating Margin % of 5.68% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Eternal Hospitality Group Co and its competitors. This is 23% above median its historical median of 4.60. According to the industry distribution chart, Eternal Hospitality Group Co ranks #126 out of 365 companies in the Restaurants industry, placing it in the top 34.5%.
Is Eternal Hospitality Group Co's Operating Margin % too high?
Eternal Hospitality Group Co's current Operating Margin % of 5.68% is 23% above median its 10-year median of 4.60. The Restaurants industry median Operating Margin % is 4.26. Eternal Hospitality Group Co's value of 5.68% is 33.3% above this industry median. Based on the distribution chart, Eternal Hospitality Group Co ranks #126 out of 365 companies in the Restaurants industry, which is above the industry midpoint. Overall, Eternal Hospitality Group Co has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eternal Hospitality Group Co's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Eternal Hospitality Group Co ranks #126 out of 365 companies for Operating Margin %. This puts Eternal Hospitality Group Co in the upper half of its industry. The industry median Operating Margin % is 4.26. Eternal Hospitality Group Co's value of 5.68% is 33.3% above this benchmark. While the company's 10-year median is 4.60 vs. the industry median of 4.26, Eternal Hospitality Group 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 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. Eternal Hospitality Group Co's current Operating Margin % of 5.68% is 33.3% 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 Eternal Hospitality Group Co and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eternal Hospitality Group Co's current Operating Margin % is 5.68%, which is 23% above median its own 10-year median of 4.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eternal Hospitality Group Co stock overvalued right now?
Based on GuruFocus' analysis, Eternal Hospitality Group Co (TSE:3193) is currently considered Significantly Undervalued. The stock's GF Value™ is 円4,247.22, compared to a current price of 円2,694.00 — trading 36.6% below its estimated fair value. The current Operating Margin % is 5.68%, which is 23% above median its 10-year median of 4.60 and 33.3% above the Restaurants industry median of 4.26. Eternal Hospitality Group Co's overall GF Score™ is 74/100. 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 Eternal Hospitality Group Co (TSE:3193), the current Operating Margin % is 5.68% as of Jan. 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 Eternal Hospitality Group Co (TSE:3193) Overvalued in 2026?
Based on GuruFocus' analysis, Eternal Hospitality Group Co stock appears to be undervalued.
The current stock price of 円2,694.00 is trading 36.6% below its estimated GF Value™ of 円4,247.22.
GuruFocus considers Eternal Hospitality Group Co to be Significantly Undervalued.
Key valuation signals for TSE:3193:
Operating Margin %: 5.68% (23% above median its 10-year median of 4.60)
GF Value™: 円4,247.22 vs. price of 円2,694.00 (36.6% below fair value)
Industry Position: 33.3% above the Restaurants median (#126 of 365)
No single metric tells the full story. See the TSE:3193 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eternal Hospitality Group Co Ltd operates a chain of restaurants specializing in chicken-based dishes like yakitori, with its core brand being Yakitori-ya Torikizoku. The company's vision is to become a "Global YAKITORI Family" by expanding its chicken food business in Japan and developing other chicken-centric brands.
74GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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