TSI Holdings CoTSE:3608 +1.59%83 Operating Margin % is 1.23% as of Feb. 2026, which is 12% below its 10-year median of 1.39. GuruFocus rates TSE:3608 with a GF Score™ of 83/100 and a GF Value™ of 円1,308.79 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,042 Manufacturing - Apparel & Accessories companies, TSI Holdings Co ranks worse than 58.73% on this metric.
The historical rank and industry rank for TSI Holdings Co's Operating Margin % or its related term are showing as below:
TSE:3608'
s Operating Margin % Range Over the Past 10 Years
Min: -8.83 Med: 1.39 Max: 3.16
Current: 2.59
TSE:3608's Operating Margin % is ranked worse than 58.73% of 1042
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.085
vs TSE:3608: 2.59
TSI Holdings Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
TSI Holdings Co (TSE:3608) 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.
TSI Holdings Co Operating Margin % Related Terms
TSI Holdings Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for TSI Holdings 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:3608 vs RL, LEVI, VFC: Operating Margin % Comparison
For the Apparel Manufacturing subindustry, TSI Holdings 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.
TSI Holdings Co Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, TSI Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TSI Holdings 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.
TSI Holdings Co's Operating Margin % for the fiscal year that ended in Feb. 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.
TSI Holdings Co (TSE:3608) has a Operating Margin % of 1.23% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on TSI Holdings Co and its competitors. This is 12% below median its historical median of 1.39. According to the industry distribution chart, TSI Holdings Co ranks #612 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 58.7%.
Is TSI Holdings Co's Operating Margin % too high?
TSI Holdings Co's current Operating Margin % of 1.23% is 12% below median its 10-year median of 1.39. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.09. TSI Holdings Co's value of 1.23% is 69.9% below this industry median. Based on the distribution chart, TSI Holdings Co ranks #612 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, TSI Holdings Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TSI Holdings Co's Operating Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, TSI Holdings Co ranks #612 out of 1042 companies for Operating Margin %. This places TSI Holdings Co in the lower half of its industry. The industry median Operating Margin % is 4.09. TSI Holdings Co's value of 1.23% is 69.9% below this benchmark. While the company's 10-year median is 1.39 vs. the industry median of 4.09, TSI Holdings Co 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 a Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.09, based on 1,042 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. TSI Holdings Co's current Operating Margin % of 1.23% is 69.9% 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 TSI Holdings Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TSI Holdings Co's current Operating Margin % is 1.23%, which is 12% below median its own 10-year median of 1.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TSI Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, TSI Holdings Co (TSE:3608) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,308.79, compared to a current price of 円1,149.00 — trading 12.2% below its estimated fair value. The current Operating Margin % is 1.23%, which is 12% below median its 10-year median of 1.39 and 69.9% below the Manufacturing - Apparel & Accessories industry median of 4.09. TSI Holdings Co's overall GF Score™ is 83/100 with 3 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 TSI Holdings Co (TSE:3608), the current Operating Margin % is 1.23% as of Feb. 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 TSI Holdings Co (TSE:3608) Overvalued in 2026?
Based on GuruFocus' analysis, TSI Holdings Co stock appears to be undervalued.
The current stock price of 円1,149.00 is trading 12.2% below its estimated GF Value™ of 円1,308.79.
GuruFocus considers TSI Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:3608:
Operating Margin %: 1.23% (12% below median its 10-year median of 1.39)
GF Value™: 円1,308.79 vs. price of 円1,149.00 (12.2% below fair value)
Industry Position: 69.9% below the Manufacturing - Apparel & Accessories median (#612 of 1042)
No single metric tells the full story. See the TSE:3608 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TSI Holdings Co Ltd is an apparel manufacturer that owns and licenses dozens of brands that it sells through department stores, other retail stores and shopping centers, and e-commerce channels. The majority of the company's sales are in Japan, with the remainder coming from China and other parts of Asia. TSI's highest-selling brands, which collectively account for more than half of the company's total revenue, include nano, Natural Beauty Basic, Margaret Howell, Pearly Gates, Rose Bud, Stussy, Proportion Body Dressing, Free's Mart, Human Woman, and Callaway Apparel.
83GF Score
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