NikkatoTSE:5367 -0.15%58 Operating Margin % is 9.82% as of Mar. 2026, which is 7% above its 10-year median of 9.21. GuruFocus rates TSE:5367 with a GF Score™ of 58/100 and a GF Value™ of 円634.86 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 3,032 Industrial Products companies, Nikkato ranks better than 63.75% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Nikkato's Operating Income for the
three
months ended in Mar. 2026 was 円311 Mil. Nikkato's Revenue for the
three
months ended in Mar. 2026 was 円3,167 Mil. Therefore, Nikkato's Operating Margin % for the quarter that ended in Mar. 2026 was 9.82%.
Good Sign:
Nikkato Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Nikkato's Operating Margin % or its related term are showing as below:
TSE:5367'
s Operating Margin % Range Over the Past 10 Years
Min: 4.2 Med: 9.21 Max: 10.88
Current: 9.45
TSE:5367's Operating Margin % is ranked better than 63.75% of 3032
companies
in the Industrial Products industry
Industry Median: 6.535
vs TSE:5367: 9.45
Nikkato's 5-Year Average Operating Margin % Growth Rate was 7.80% per year.
Nikkato's Operating Income for the
three
months ended in Mar. 2026 was 円311 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,071 Mil.
Nikkato (TSE:5367) 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.
Nikkato Operating Margin % Related Terms
Nikkato Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nikkato'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:5367 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Nikkato'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.
Nikkato Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nikkato's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nikkato'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.
Nikkato'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.
Nikkato (TSE:5367) has a Operating Margin % of 9.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nikkato and its competitors. This is near median its historical median of 9.21. Over the past decade, Nikkato's Operating Margin % has ranged from 4.20 to 10.88. According to the industry distribution chart, Nikkato ranks #1099 out of 3032 companies in the Industrial Products industry, placing it in the top 36.2%.
Is Nikkato's Operating Margin % too high?
Nikkato's current Operating Margin % of 9.82% is near median its 10-year median of 9.21. Over the past 10 years, this metric has ranged from a low of 4.20 to a high of 10.88. The Industrial Products industry median Operating Margin % is 6.54. Nikkato's value of 9.82% is 50.3% above this industry median. Based on the distribution chart, Nikkato ranks #1099 out of 3032 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Nikkato has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nikkato's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Nikkato ranks #1099 out of 3032 companies for Operating Margin %. This puts Nikkato in the upper half of its industry. The industry median Operating Margin % is 6.54. Nikkato's value of 9.82% is 50.3% above this benchmark. Historically, Nikkato's own Operating Margin % has ranged from 4.20 to 10.88 over the past decade. While the company's 10-year median is 9.21 vs. the industry median of 6.54, Nikkato 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.54, based on 3,032 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. Nikkato's current Operating Margin % of 9.82% is 50.3% 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 Nikkato and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nikkato's current Operating Margin % is 9.82%, which is near median its own 10-year median of 9.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nikkato stock overvalued right now?
Based on GuruFocus' analysis, Nikkato (TSE:5367) is currently considered Significantly Overvalued. The stock's GF Value™ is 円634.86, compared to a current price of 円1,355.00 — trading 113.4% above its estimated fair value. The current Operating Margin % is 9.82%, which is near median its 10-year median of 9.21 and 50.3% above the Industrial Products industry median of 6.54. Nikkato's overall GF Score™ is 58/100 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 Nikkato (TSE:5367), the current Operating Margin % is 9.82% 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 Nikkato (TSE:5367) Overvalued in 2026?
Based on GuruFocus' analysis, Nikkato stock appears to be overvalued.
The current stock price of 円1,355.00 is trading 113.4% above its estimated GF Value™ of 円634.86.
GuruFocus considers Nikkato to be Significantly Overvalued.
Key valuation signals for TSE:5367:
Operating Margin %: 9.82% (near median its 10-year median of 9.21)
GF Value™: 円634.86 vs. price of 円1,355.00 (113.4% above fair value)
Industry Position: 50.3% above the Industrial Products median (#1099 of 3032)
No single metric tells the full story. See the TSE:5367 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nikkato Corp engages in the manufacture and sale of ceramics for industrial and laboratory use; measurement and control equipment; and various kinds of electric furnaces. The Ceramics products include functional ceramics, including thermal heating elements, oxygen sensors and ceramics filters; abrasion-resistant ceramics, including ball mills and crushing balls and components; heat-resistant ceramics, core tubes, transportation rollers and heat-treatment equipment and instruments; as well as physical and chemical ceramics, including evaporating dishes, crucibles and ceramics for experimental purposes. The firm also purchases and sells heating systems, including electric furnaces, vacuum furnaces and thermal treatment equipment; measuring systems, as well as measurement controllers.
58GF Score
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