Asaka Riken CoTSE:5724 -2.04%50 Operating Margin % is 13.59% as of Mar. 2026, which is 260% above its 10-year median of 3.77. GuruFocus rates TSE:5724 with a GF Score™ of 50/100 and a GF Value™ of 円1,265.83 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 841 Metals & Mining companies, Asaka Riken Co ranks better than 58.62% on this metric.
Asaka Riken Co (TSE:5724) 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.
Asaka Riken Co Operating Margin % Related Terms
Asaka Riken Co Operating Margin % Historical Data
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The historical data trend for Asaka Riken 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.
Asaka Riken Co Operating Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Asaka Riken 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.
Asaka Riken Co Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Asaka Riken Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Asaka Riken 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.
Asaka Riken Co's Operating Margin % for the fiscal year that ended in Sep. 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.
Asaka Riken Co (TSE:5724) has a Operating Margin % of 13.59% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Asaka Riken Co and its competitors. This is 260% above median its historical median of 3.77. Over the past decade, Asaka Riken Co's Operating Margin % has ranged from 1.15 to 10.09. According to the industry distribution chart, Asaka Riken Co ranks #348 out of 841 companies in the Metals & Mining industry, placing it in the top 41.4%.
Is Asaka Riken Co's Operating Margin % too high?
Asaka Riken Co's current Operating Margin % of 13.59% is 260% above median its 10-year median of 3.77. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 10.09. The Metals & Mining industry median Operating Margin % is 5.79. Asaka Riken Co's value of 13.59% is 134.7% above this industry median. Based on the distribution chart, Asaka Riken Co ranks #348 out of 841 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Asaka Riken Co has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asaka Riken Co's Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Asaka Riken Co ranks #348 out of 841 companies for Operating Margin %. This puts Asaka Riken Co in the upper half of its industry. The industry median Operating Margin % is 5.79. Asaka Riken Co's value of 13.59% is 134.7% above this benchmark. Historically, Asaka Riken Co's own Operating Margin % has ranged from 1.15 to 10.09 over the past decade. While the company's 10-year median is 3.77 vs. the industry median of 5.79, Asaka Riken 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.79, based on 841 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. Asaka Riken Co's current Operating Margin % of 13.59% is 134.7% 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 Asaka Riken Co and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asaka Riken Co's current Operating Margin % is 13.59%, which is 260% above median its own 10-year median of 3.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asaka Riken Co stock overvalued right now?
Based on GuruFocus' analysis, Asaka Riken Co (TSE:5724) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,265.83, compared to a current price of 円2,395.00 — trading 89.2% above its estimated fair value. The current Operating Margin % is 13.59%, which is 260% above median its 10-year median of 3.77 and 134.7% above the Metals & Mining industry median of 5.79. Asaka Riken Co's overall GF Score™ is 50/100 with 4 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 Asaka Riken Co (TSE:5724), the current Operating Margin % is 13.59% 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 Asaka Riken Co (TSE:5724) Overvalued in 2026?
Based on GuruFocus' analysis, Asaka Riken Co stock appears to be overvalued.
The current stock price of 円2,395.00 is trading 89.2% above its estimated GF Value™ of 円1,265.83.
GuruFocus considers Asaka Riken Co to be Significantly Overvalued.
Key valuation signals for TSE:5724:
Operating Margin %: 13.59% (260% above median its 10-year median of 3.77)
GF Value™: 円1,265.83 vs. price of 円2,395.00 (89.2% above fair value)
Industry Position: 134.7% above the Metals & Mining median (#348 of 841)
No single metric tells the full story. See the TSE:5724 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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