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The Nihon Seima Co Ltd has recorded a loss in operating income at least once over the past 3 years.
The Nihon Seima Co (TSE:3306) 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.
The Nihon Seima Co Operating Margin % Related Terms
The Nihon Seima Co Operating Margin % Historical Data
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The historical data trend for The Nihon Seima 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:3306 vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, The Nihon Seima 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.
The Nihon Seima Co Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, The Nihon Seima Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Nihon Seima 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.
The Nihon Seima 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.
The Nihon Seima Co (TSE:3306) has a Operating Margin % of -1.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Nihon Seima Co and its competitors. According to the industry distribution chart, The Nihon Seima Co ranks #445 out of 550 companies in the Conglomerates industry, placing it in the top 80.9%.
Is The Nihon Seima Co's Operating Margin % too high?
The Nihon Seima Co's current Operating Margin % is -1.13%. Based on the distribution chart, The Nihon Seima Co ranks #445 out of 550 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, The Nihon Seima Co has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Nihon Seima Co's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, The Nihon Seima Co ranks #445 out of 550 companies for Operating Margin %. This places The Nihon Seima Co in the lower half of its industry. The industry median Operating Margin % is 5.82. 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.82, based on 550 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. 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 The Nihon Seima Co and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Nihon Seima Co's current Operating Margin % is -1.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Nihon Seima Co stock overvalued right now?
Based on GuruFocus' analysis, The Nihon Seima Co (TSE:3306) is currently considered Significantly Overvalued. The stock's GF Value™ is 円329.02, compared to a current price of 円674.00 — trading 104.9% above its estimated fair value. The current Operating Margin % is -1.13%. The Nihon Seima Co's overall GF Score™ is 47/100 with 5 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 The Nihon Seima Co (TSE:3306), the current Operating Margin % is -1.13% 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 The Nihon Seima Co (TSE:3306) Overvalued in 2026?
Based on GuruFocus' analysis, The Nihon Seima Co stock appears to be overvalued.
The current stock price of 円674.00 is trading 104.9% above its estimated GF Value™ of 円329.02.
GuruFocus considers The Nihon Seima Co to be Significantly Overvalued.
Key valuation signals for TSE:3306:
Operating Margin %: -1.13%
GF Value™: 円329.02 vs. price of 円674.00 (104.9% above fair value)
No single metric tells the full story. See the TSE:3306 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Nihon Seima Co Ltd is engaged in the manufacture and sale of industrial materials and food products in Japan. It operates through the following business divisions: The Industrial Materials division offers jute products, packaging materials, and others. The Mat division is involved in the manufacture and sale of automobile floor mats and others. The Food divisions is engaged in the production and processing of spaghetti, sauce, and others.
47GF Score
Get the complete analysis for TSE:3306
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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