Zig-ZagTSE:340A +1.16%20 Operating Margin % is 16.41% as of Nov. 2025, which is 18% below its 10-year median of 20.00. GuruFocus rates TSE:340A with a GF Score™ of 20/100. The stock has 1 warning sign investors should review. Among 1,070 Business Services companies, Zig-Zag ranks better than 83.83% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Zig-Zag's Operating Income for the
three
months ended in Nov. 2025 was 円57 Mil. Zig-Zag's Revenue for the
three
months ended in Nov. 2025 was 円350 Mil. Therefore, Zig-Zag's Operating Margin % for the quarter that ended in Nov. 2025 was 16.41%.
The historical rank and industry rank for Zig-Zag's Operating Margin % or its related term are showing as below:
TSE:340A'
s Operating Margin % Range Over the Past 10 Years
Min: 4.61 Med: 20 Max: 22.86
Current: 18.5
TSE:340A's Operating Margin % is ranked better than 83.83% of 1070
companies
in the Business Services industry
Industry Median: 6.365
vs TSE:340A: 18.50
Zig-Zag's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Zig-Zag's Operating Income for the
three
months ended in Nov. 2025 was 円57 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2025 was 円266 Mil.
Zig-Zag (TSE:340A) 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.
Zig-Zag Operating Margin % Related Terms
Zig-Zag Operating Margin % Historical Data
* Premium members only.
The historical data trend for Zig-Zag'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:340A vs CTAS, CPRT, ULS: Operating Margin % Comparison
For the Specialty Business Services subindustry, Zig-Zag'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.
Zig-Zag Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Zig-Zag's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zig-Zag'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.
Zig-Zag's Operating Margin % for the fiscal year that ended in May. 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.
Zig-Zag (TSE:340A) has a Operating Margin % of 16.41% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zig-Zag and its competitors. This is 18% below median its historical median of 20.00. Over the past decade, Zig-Zag's Operating Margin % has ranged from 4.61 to 22.86. According to the industry distribution chart, Zig-Zag ranks #173 out of 1070 companies in the Business Services industry, placing it in the top 16.2%.
Is Zig-Zag's Operating Margin % too high?
Zig-Zag's current Operating Margin % of 16.41% is 18% below median its 10-year median of 20.00. Over the past 10 years, this metric has ranged from a low of 4.61 to a high of 22.86. The Business Services industry median Operating Margin % is 6.37. Zig-Zag's value of 16.41% is 157.8% above this industry median. Based on the distribution chart, Zig-Zag ranks #173 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zig-Zag has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Zig-Zag's Operating Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Zig-Zag ranks #173 out of 1070 companies for Operating Margin %. This places Zig-Zag in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.37. Zig-Zag's value of 16.41% is 157.8% above this benchmark. Historically, Zig-Zag's own Operating Margin % has ranged from 4.61 to 22.86 over the past decade. While the company's 10-year median is 20.00 vs. the industry median of 6.37, Zig-Zag 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.37, based on 1,070 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. Zig-Zag's current Operating Margin % of 16.41% is 157.8% 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 Zig-Zag and its competitors. For the Business Services industry, the median Operating Margin % is 6.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zig-Zag's current Operating Margin % is 16.41%, which is 18% below median its own 10-year median of 20.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zig-Zag stock overvalued right now?
Zig-Zag (TSE:340A) has a current Operating Margin % of 16.41%. The current Operating Margin % is 16.41%, which is 18% below median its 10-year median of 20.00 and 157.8% above the Business Services industry median of 6.37. Zig-Zag's overall GF Score™ is 20/100 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 Zig-Zag (TSE:340A), the current Operating Margin % is 16.41% as of Nov. 2025. 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.
Zig-Zag Inc is engaged in provision of the purchasing agent service for overseas customers, WorldShopping, and the Cross-border EC support service for domestic EC-site, WorldShoppingBIZ.
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