TOCALO CoTSE:3433 +0.94%91 Operating Margin % is 28.85% as of Mar. 2026, which is 35% above its 10-year median of 21.40. GuruFocus rates TSE:3433 with a GF Score™ of 91/100 and a GF Value™ of 円2,211.55 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,070 Business Services companies, TOCALO Co ranks better than 90.84% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. TOCALO Co's Operating Income for the
three
months ended in Mar. 2026 was 円4,578 Mil. TOCALO Co's Revenue for the
three
months ended in Mar. 2026 was 円15,869 Mil. Therefore, TOCALO Co's Operating Margin % for the quarter that ended in Mar. 2026 was 28.85%.
Good Sign:
TOCALO Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for TOCALO Co's Operating Margin % or its related term are showing as below:
TSE:3433'
s Operating Margin % Range Over the Past 10 Years
Min: 17.3 Med: 21.4 Max: 24.12
Current: 24.12
TSE:3433's Operating Margin % is ranked better than 90.84% of 1070
companies
in the Business Services industry
Industry Median: 6.33
vs TSE:3433: 24.12
TOCALO Co's 5-Year Average Operating Margin % Growth Rate was 0.30% per year.
TOCALO Co's Operating Income for the
three
months ended in Mar. 2026 was 円4,578 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円14,107 Mil.
TOCALO Co (TSE:3433) 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.
TOCALO Co Operating Margin % Related Terms
TOCALO Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for TOCALO 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:3433 vs CTAS, CPRT, GPN: Operating Margin % Comparison
For the Specialty Business Services subindustry, TOCALO 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.
TOCALO Co Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, TOCALO Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TOCALO 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.
TOCALO 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.
TOCALO Co (TSE:3433) has a Operating Margin % of 28.85% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on TOCALO Co and its competitors. This is 35% above median its historical median of 21.40. Over the past decade, TOCALO Co's Operating Margin % has ranged from 17.30 to 24.12. According to the industry distribution chart, TOCALO Co ranks #98 out of 1070 companies in the Business Services industry, placing it in the top 9.2%.
Is TOCALO Co's Operating Margin % too high?
TOCALO Co's current Operating Margin % of 28.85% is 35% above median its 10-year median of 21.40. Over the past 10 years, this metric has ranged from a low of 17.30 to a high of 24.12. The Business Services industry median Operating Margin % is 6.33. TOCALO Co's value of 28.85% is 355.8% above this industry median. Based on the distribution chart, TOCALO Co ranks #98 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, TOCALO Co has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TOCALO Co's Operating Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, TOCALO Co ranks #98 out of 1070 companies for Operating Margin %. This places TOCALO Co in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.33. TOCALO Co's value of 28.85% is 355.8% above this benchmark. Historically, TOCALO Co's own Operating Margin % has ranged from 17.30 to 24.12 over the past decade. While the company's 10-year median is 21.40 vs. the industry median of 6.33, TOCALO 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.33, 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. TOCALO Co's current Operating Margin % of 28.85% is 355.8% 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 TOCALO Co and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TOCALO Co's current Operating Margin % is 28.85%, which is 35% above median its own 10-year median of 21.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOCALO Co stock overvalued right now?
Based on GuruFocus' analysis, TOCALO Co (TSE:3433) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,211.55, compared to a current price of 円3,230.00 — trading 46.1% above its estimated fair value. The current Operating Margin % is 28.85%, which is 35% above median its 10-year median of 21.40 and 355.8% above the Business Services industry median of 6.33. TOCALO Co's overall GF Score™ is 91/100 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 TOCALO Co (TSE:3433), the current Operating Margin % is 28.85% 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 TOCALO Co (TSE:3433) Overvalued in 2026?
Based on GuruFocus' analysis, TOCALO Co stock appears to be overvalued.
The current stock price of 円3,230.00 is trading 46.1% above its estimated GF Value™ of 円2,211.55.
GuruFocus considers TOCALO Co to be Significantly Overvalued.
Key valuation signals for TSE:3433:
Operating Margin %: 28.85% (35% above median its 10-year median of 21.40)
GF Value™: 円2,211.55 vs. price of 円3,230.00 (46.1% above fair value)
Industry Position: 355.8% above the Business Services median (#98 of 1070)
No single metric tells the full story. See the TSE:3433 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOCALO Co Ltd develops surface modifying technologies in Japan and internationally. The company produces various functional coatings through thermal spraying technology, including vacuum plasma, atmospheric plasma, electric arc, and high-velocity oxy-fuel spraying, as well as powder, rod, and wire flame spraying processes. It also provides peripheral surface technologies, such as WIN KOTE, CDC-ZAC, and Lite Force coatings; and TD, PTA, and PVD processes.
91GF Score
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