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Tess Holdings CoTSE:5074 -5.82%67 Operating Margin % is 15.88% as of Dec. 2025, which is 28% above its 10-year median of 12.36. GuruFocus rates TSE:5074 with a GF Score™ of 67/100 and a GF Value™ of 円624.79 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 419 Utilities - Independent Power Producers companies, Tess Holdings Co ranks worse than 60.14% on this metric.
Tess Holdings Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -11.1%.
The historical rank and industry rank for Tess Holdings Co's Operating Margin % or its related term are showing as below:
TSE:5074'
s Operating Margin % Range Over the Past 10 Years
Min: 5.09 Med: 12.36 Max: 19.95
Current: 7.33
TSE:5074's Operating Margin % is ranked worse than 60.14% of 419
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.47
vs TSE:5074: 7.33
Tess Holdings Co's 5-Year Average Operating Margin % Growth Rate was -11.10% per year.
Tess Holdings Co (TSE:5074) 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.
Tess Holdings Co Operating Margin % Related Terms
Tess Holdings Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Tess 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.
Tess Holdings Co Operating Margin % Competitor Comparison
For the Utilities - Renewable subindustry, Tess 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.
Tess Holdings Co Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Tess Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tess 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.
Tess Holdings Co's Operating Margin % for the fiscal year that ended in Jun. 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.
Tess Holdings Co (TSE:5074) has a Operating Margin % of 15.88% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tess Holdings Co and its competitors. This is 28% above median its historical median of 12.36. Over the past decade, Tess Holdings Co's Operating Margin % has ranged from 5.09 to 19.95. According to the industry distribution chart, Tess Holdings Co ranks #252 out of 419 companies in the Utilities - Independent Power Producers industry, placing it in the top 60.1%.
Is Tess Holdings Co's Operating Margin % too high?
Tess Holdings Co's current Operating Margin % of 15.88% is 28% above median its 10-year median of 12.36. Over the past 10 years, this metric has ranged from a low of 5.09 to a high of 19.95. The Utilities - Independent Power Producers industry median Operating Margin % is 13.47. Tess Holdings Co's value of 15.88% is 17.9% above this industry median. Based on the distribution chart, Tess Holdings Co ranks #252 out of 419 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Tess Holdings Co has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tess Holdings Co's Operating Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Tess Holdings Co ranks #252 out of 419 companies for Operating Margin %. This places Tess Holdings Co in the lower half of its industry. The industry median Operating Margin % is 13.47. Tess Holdings Co's value of 15.88% is 17.9% above this benchmark. Historically, Tess Holdings Co's own Operating Margin % has ranged from 5.09 to 19.95 over the past decade. While the company's 10-year median is 12.36 vs. the industry median of 13.47, Tess Holdings 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 an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.47, based on 419 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. Tess Holdings Co's current Operating Margin % of 15.88% is 17.9% 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 Tess Holdings Co and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tess Holdings Co's current Operating Margin % is 15.88%, which is 28% above median its own 10-year median of 12.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tess Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Tess Holdings Co (TSE:5074) is currently considered Modestly Overvalued. The stock's GF Value™ is 円624.79, compared to a current price of 円745.00 — trading 19.2% above its estimated fair value. The current Operating Margin % is 15.88%, which is 28% above median its 10-year median of 12.36 and 17.9% above the Utilities - Independent Power Producers industry median of 13.47. Tess Holdings Co's overall GF Score™ is 67/100 with 6 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 Tess Holdings Co (TSE:5074), the current Operating Margin % is 15.88% as of Dec. 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.
Is Tess Holdings Co (TSE:5074) Overvalued in 2026?
Based on GuruFocus' analysis, Tess Holdings Co stock appears to be overvalued.
The current stock price of 円745.00 is trading 19.2% above its estimated GF Value™ of 円624.79.
GuruFocus considers Tess Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:5074:
Operating Margin %: 15.88% (28% above median its 10-year median of 12.36)
GF Value™: 円624.79 vs. price of 円745.00 (19.2% above fair value)
Industry Position: 17.9% above the Utilities - Independent Power Producers median (#252 of 419)
No single metric tells the full story. See the TSE:5074 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tess Holdings Co Ltd is engaged in the development and electricity sales of renewable power plants and power retailing business. Further, it is also involved in the operation and maintenance of cogeneration and other environmental energy-saving systems.
67GF Score
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