Hirakawa HewtechTSE:5821 -2.64%74 Operating Margin % is 11.27% as of Mar. 2026, which is 27% above its 10-year median of 8.86. GuruFocus rates TSE:5821 with a GF Score™ of 74/100 and a GF Value™ of 円1,770.02 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 545 Conglomerates companies, Hirakawa Hewtech ranks better than 71.38% on this metric.
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.
Hirakawa Hewtech Operating Margin % Related Terms
Hirakawa Hewtech Operating Margin % Historical Data
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The historical data trend for Hirakawa Hewtech'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:5821 vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Hirakawa Hewtech'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.
Hirakawa Hewtech Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hirakawa Hewtech's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hirakawa Hewtech'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.
Hirakawa Hewtech'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.
Hirakawa Hewtech (TSE:5821) has a Operating Margin % of 11.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hirakawa Hewtech and its competitors. This is 27% above median its historical median of 8.86. Over the past decade, Hirakawa Hewtech's Operating Margin % has ranged from 5.69 to 11.50. According to the industry distribution chart, Hirakawa Hewtech ranks #156 out of 545 companies in the Conglomerates industry, placing it in the top 28.6%.
Is Hirakawa Hewtech's Operating Margin % too high?
Hirakawa Hewtech's current Operating Margin % of 11.27% is 27% above median its 10-year median of 8.86. Over the past 10 years, this metric has ranged from a low of 5.69 to a high of 11.50. The Conglomerates industry median Operating Margin % is 5.93. Hirakawa Hewtech's value of 11.27% is 90.1% above this industry median. Based on the distribution chart, Hirakawa Hewtech ranks #156 out of 545 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Hirakawa Hewtech has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hirakawa Hewtech's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hirakawa Hewtech ranks #156 out of 545 companies for Operating Margin %. This puts Hirakawa Hewtech in the upper half of its industry. The industry median Operating Margin % is 5.93. Hirakawa Hewtech's value of 11.27% is 90.1% above this benchmark. Historically, Hirakawa Hewtech's own Operating Margin % has ranged from 5.69 to 11.50 over the past decade. While the company's 10-year median is 8.86 vs. the industry median of 5.93, Hirakawa Hewtech 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 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. Hirakawa Hewtech's current Operating Margin % of 11.27% is 90.1% 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 Hirakawa Hewtech and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hirakawa Hewtech's current Operating Margin % is 11.27%, which is 27% above median its own 10-year median of 8.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hirakawa Hewtech stock overvalued right now?
Based on GuruFocus' analysis, Hirakawa Hewtech (TSE:5821) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,770.02, compared to a current price of 円3,685.00 — trading 108.2% above its estimated fair value. The current Operating Margin % is 11.27%, which is 27% above median its 10-year median of 8.86 and 90.1% above the Conglomerates industry median of 5.93. Hirakawa Hewtech's overall GF Score™ is 74/100 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 Hirakawa Hewtech (TSE:5821), the current Operating Margin % is 11.27% 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 Hirakawa Hewtech (TSE:5821) Overvalued in 2026?
Based on GuruFocus' analysis, Hirakawa Hewtech stock appears to be overvalued.
The current stock price of 円3,685.00 is trading 108.2% above its estimated GF Value™ of 円1,770.02.
GuruFocus considers Hirakawa Hewtech to be Significantly Overvalued.
Key valuation signals for TSE:5821:
Operating Margin %: 11.27% (27% above median its 10-year median of 8.86)
GF Value™: 円1,770.02 vs. price of 円3,685.00 (108.2% above fair value)
Industry Position: 90.1% above the Conglomerates median (#156 of 545)
No single metric tells the full story. See the TSE:5821 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hirakawa Hewtech Corp is a Japan-based company. It is mainly engaged in the manufacture and sale of electric wires, cables, electrical equipment, and medical equipment. The company is also engaged in the design, construction, supervision and contracting of electrical work and telecommunications construction. Electrical products offered by the company include micro coaxial cable, interface cable, broadcast cable, and high-frequency coaxial cable. Medical equipment offerings include industry tube and medical tube. Hirakawa Hewtech is also engaged in real estate management and leasing.
74GF Score
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