Cluster Technology CoTSE:4240 +0.32%78 Operating Margin % is 7.98% as of Mar. 2026, which is 31% above its 10-year median of 6.10. GuruFocus rates TSE:4240 with a GF Score™ of 78/100 and a GF Value™ of 円427.66 (Modestly Undervalued). Among 2,471 Hardware companies, Cluster Technology Co ranks better than 81.95% on this metric.
Cluster Technology Co (TSE:4240) 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.
Cluster Technology Co Operating Margin % Related Terms
Cluster Technology Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cluster Technology 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:4240 vs APH, GLW: Operating Margin % Comparison
For the Electronic Components subindustry, Cluster Technology 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.
Cluster Technology Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Cluster Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cluster Technology Co's Operating Margin % falls into.
Cluster Technology Co Operating Margin % Calculation
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.
Cluster Technology 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.
Cluster Technology Co (TSE:4240) has a Operating Margin % of 7.98% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cluster Technology Co and its competitors. This is 31% above median its historical median of 6.10. According to the industry distribution chart, Cluster Technology Co ranks #446 out of 2471 companies in the Hardware industry, placing it in the top 18%.
Is Cluster Technology Co's Operating Margin % too high?
Cluster Technology Co's current Operating Margin % of 7.98% is 31% above median its 10-year median of 6.10. The Hardware industry median Operating Margin % is 3.82. Cluster Technology Co's value of 7.98% is 108.9% above this industry median. Based on the distribution chart, Cluster Technology Co ranks #446 out of 2471 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Cluster Technology Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cluster Technology Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Cluster Technology Co ranks #446 out of 2471 companies for Operating Margin %. This places Cluster Technology Co in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.82. Cluster Technology Co's value of 7.98% is 108.9% above this benchmark. While the company's 10-year median is 6.10 vs. the industry median of 3.82, Cluster Technology 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.82, based on 2,471 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. Cluster Technology Co's current Operating Margin % of 7.98% is 108.9% 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 Cluster Technology Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cluster Technology Co's current Operating Margin % is 7.98%, which is 31% above median its own 10-year median of 6.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cluster Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Cluster Technology Co (TSE:4240) is currently considered Modestly Undervalued. The stock's GF Value™ is 円427.66, compared to a current price of 円317.00 — trading 25.9% below its estimated fair value. The current Operating Margin % is 7.98%, which is 31% above median its 10-year median of 6.10 and 108.9% above the Hardware industry median of 3.82. Cluster Technology Co's overall GF Score™ is 78/100. 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 Cluster Technology Co (TSE:4240), the current Operating Margin % is 7.98% 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 Cluster Technology Co (TSE:4240) Overvalued in 2026?
Based on GuruFocus' analysis, Cluster Technology Co stock appears to be undervalued.
The current stock price of 円317.00 is trading 25.9% below its estimated GF Value™ of 円427.66.
GuruFocus considers Cluster Technology Co to be Modestly Undervalued.
Key valuation signals for TSE:4240:
Operating Margin %: 7.98% (31% above median its 10-year median of 6.10)
GF Value™: 円427.66 vs. price of 円317.00 (25.9% below fair value)
Industry Position: 108.9% above the Hardware median (#446 of 2471)
No single metric tells the full story. See the TSE:4240 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cluster Technology Co Ltd develops and manufactures composite materials and Nano-micromachining including metal mold making. It also manufactures and sale molding dies, plastic molding materials. Its nanotechnology/microtechnology business products include sensor holders for autofocus of digital single lens reflex cameras, peripheral parts of image sensors, base parts of inkjet heads.
78GF Score
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