Naigai TecTSE:3374 -0.62%77 Operating Margin % is 5.27% as of Mar. 2026, which is 25% above its 10-year median of 4.21. GuruFocus rates TSE:3374 with a GF Score™ of 77/100 and a GF Value™ of 円2,199.58 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 3,027 Industrial Products companies, Naigai Tec ranks worse than 61.38% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Naigai Tec's Operating Income for the
six
months ended in Mar. 2026 was 円915 Mil. Naigai Tec's Revenue for the
six
months ended in Mar. 2026 was 円17,375 Mil. Therefore, Naigai Tec's Operating Margin % for the quarter that ended in Mar. 2026 was 5.27%.
Warning Sign:
Naigai Tec Corp operating margin has been in a 5-year decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for Naigai Tec's Operating Margin % or its related term are showing as below:
TSE:3374'
s Operating Margin % Range Over the Past 10 Years
Min: 2.3 Med: 4.21 Max: 5.65
Current: 4.3
TSE:3374's Operating Margin % is ranked worse than 61.38% of 3027
companies
in the Industrial Products industry
Industry Median: 6.53
vs TSE:3374: 4.30
Naigai Tec's 5-Year Average Operating Margin % Growth Rate was -2.30% per year.
Naigai Tec's Operating Income for the
six
months ended in Mar. 2026 was 円915 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,403 Mil.
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.
Naigai Tec Operating Margin % Related Terms
Naigai Tec Operating Margin % Historical Data
* Premium members only.
The historical data trend for Naigai Tec'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:3374 vs VRT, BE: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Naigai Tec'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.
Naigai Tec Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Naigai Tec's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Naigai Tec'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.
Naigai Tec'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.
Naigai Tec (TSE:3374) has a Operating Margin % of 5.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Naigai Tec and its competitors. This is 25% above median its historical median of 4.21. Over the past decade, Naigai Tec's Operating Margin % has ranged from 2.30 to 5.65. According to the industry distribution chart, Naigai Tec ranks #1858 out of 3027 companies in the Industrial Products industry, placing it in the top 61.4%.
Is Naigai Tec's Operating Margin % too high?
Naigai Tec's current Operating Margin % of 5.27% is 25% above median its 10-year median of 4.21. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 5.65. The Industrial Products industry median Operating Margin % is 6.53. Naigai Tec's value of 5.27% is 19.3% below this industry median. Based on the distribution chart, Naigai Tec ranks #1858 out of 3027 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Naigai Tec has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Naigai Tec's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Naigai Tec ranks #1858 out of 3027 companies for Operating Margin %. This places Naigai Tec in the lower half of its industry. The industry median Operating Margin % is 6.53. Naigai Tec's value of 5.27% is 19.3% below this benchmark. Historically, Naigai Tec's own Operating Margin % has ranged from 2.30 to 5.65 over the past decade. While the company's 10-year median is 4.21 vs. the industry median of 6.53, Naigai Tec 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,027 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. Naigai Tec's current Operating Margin % of 5.27% is 19.3% 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 Naigai Tec and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Naigai Tec's current Operating Margin % is 5.27%, which is 25% above median its own 10-year median of 4.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Naigai Tec stock overvalued right now?
Based on GuruFocus' analysis, Naigai Tec (TSE:3374) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,199.58, compared to a current price of 円3,210.00 — trading 45.9% above its estimated fair value. The current Operating Margin % is 5.27%, which is 25% above median its 10-year median of 4.21 and 19.3% below the Industrial Products industry median of 6.53. Naigai Tec's overall GF Score™ is 77/100 with 8 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 Naigai Tec (TSE:3374), the current Operating Margin % is 5.27% 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 Naigai Tec (TSE:3374) Overvalued in 2026?
Based on GuruFocus' analysis, Naigai Tec stock appears to be overvalued.
The current stock price of 円3,210.00 is trading 45.9% above its estimated GF Value™ of 円2,199.58.
GuruFocus considers Naigai Tec to be Significantly Overvalued.
Key valuation signals for TSE:3374:
Operating Margin %: 5.27% (25% above median its 10-year median of 4.21)
GF Value™: 円2,199.58 vs. price of 円3,210.00 (45.9% above fair value)
Industry Position: 19.3% below the Industrial Products median (#1858 of 3027)
No single metric tells the full story. See the TSE:3374 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Naigai Tec Corp is engaged in electronics parts design, manufacture, logistics, and after-sale service. It sales, purchase, import and export of pneumatic devices, pneumatic application devices, working machines, electric devices, electronic devices, and other tools. It provides its services to Japan, China, and South Korea. The reportable segments include: Sales business and Contract manufacturing business.
77GF Score
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