Daiwa Cycle CoTSE:5888 +1.46%18 Operating Margin % is 2.31% as of Jan. 2026, which is 56% below its 10-year median of 5.20. GuruFocus rates TSE:5888 with a GF Score™ of 18/100. Among 1,325 Vehicles & Parts companies, Daiwa Cycle Co ranks better than 62.19% on this metric.
Daiwa Cycle Co (TSE:5888) 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.
Daiwa Cycle Co Operating Margin % Related Terms
Daiwa Cycle Co Operating Margin % Historical Data
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The historical data trend for Daiwa Cycle 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:5888 vs BC, THO, PII: Operating Margin % Comparison
For the Recreational Vehicles subindustry, Daiwa Cycle 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.
Daiwa Cycle Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daiwa Cycle Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Daiwa Cycle 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.
Daiwa Cycle Co's Operating Margin % for the fiscal year that ended in Jan. 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.
Daiwa Cycle Co (TSE:5888) has a Operating Margin % of 2.31% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Daiwa Cycle Co and its competitors. This is 56% below median its historical median of 5.20. Over the past decade, Daiwa Cycle Co's Operating Margin % has ranged from 1.93 to 7.50. According to the industry distribution chart, Daiwa Cycle Co ranks #501 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 37.8%.
Is Daiwa Cycle Co's Operating Margin % too high?
Daiwa Cycle Co's current Operating Margin % of 2.31% is 56% below median its 10-year median of 5.20. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 7.50. The Vehicles & Parts industry median Operating Margin % is 4.86. Daiwa Cycle Co's value of 2.31% is 52.5% below this industry median. Based on the distribution chart, Daiwa Cycle Co ranks #501 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Daiwa Cycle Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Daiwa Cycle Co's Operating Margin % compare to BC and THO?
According to the Vehicles & Parts industry distribution chart, Daiwa Cycle Co ranks #501 out of 1325 companies for Operating Margin %. This puts Daiwa Cycle Co in the upper half of its industry. The industry median Operating Margin % is 4.86. Daiwa Cycle Co's value of 2.31% is 52.5% below this benchmark. Historically, Daiwa Cycle Co's own Operating Margin % has ranged from 1.93 to 7.50 over the past decade. While the company's 10-year median is 5.20 vs. the industry median of 4.86, Daiwa Cycle Co has consistently been below 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. Daiwa Cycle Co's current Operating Margin % of 2.31% is 52.5% below 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 Daiwa Cycle Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiwa Cycle Co's current Operating Margin % is 2.31%, which is 56% below median its own 10-year median of 5.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Cycle Co stock overvalued right now?
Daiwa Cycle Co (TSE:5888) has a current Operating Margin % of 2.31%. The current Operating Margin % is 2.31%, which is 56% below median its 10-year median of 5.20 and 52.5% below the Vehicles & Parts industry median of 4.86. Daiwa Cycle Co's overall GF Score™ is 18/100. 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 Daiwa Cycle Co (TSE:5888), the current Operating Margin % is 2.31% as of Jan. 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.
Daiwa Cycle Co Ltd is a specialty retail company that operates a chain of bicycle stores. The Company is engaged in the Sales of bicycles, bicycle parts and accessories as well as the provision of bicycle maintenance and repair. The company distributes its products and services directly to consumers through its directly managed physical locations, franchise partnerships, and e-commerce platforms.
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