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TONE CoTSE:5967 +1.04%76 Operating Margin % is 12.90% as of Feb. 2026, which is 22% below its 10-year median of 16.62. GuruFocus rates TSE:5967 with a GF Score™ of 76/100 and a GF Value™ of 円610.90 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,035 Industrial Products companies, TONE Co ranks better than 86.85% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. TONE Co's Operating Income for the
three
months ended in Feb. 2026 was 円232 Mil. TONE Co's Revenue for the
three
months ended in Feb. 2026 was 円1,797 Mil. Therefore, TONE Co's Operating Margin % for the quarter that ended in Feb. 2026 was 12.90%.
Warning Sign:
TONE Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for TONE Co's Operating Margin % or its related term are showing as below:
TSE:5967'
s Operating Margin % Range Over the Past 10 Years
Min: 13.2 Med: 16.62 Max: 24.2
Current: 17.35
TSE:5967's Operating Margin % is ranked better than 86.85% of 3035
companies
in the Industrial Products industry
Industry Median: 6.5
vs TSE:5967: 17.35
TONE Co's 5-Year Average Operating Margin % Growth Rate was -2.90% per year.
TONE Co's Operating Income for the
three
months ended in Feb. 2026 was 円232 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円1,364 Mil.
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.
TONE Co Operating Margin % Related Terms
TONE Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for TONE 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:5967 vs SNA, RBC, SWK: Operating Margin % Comparison
For the Tools & Accessories subindustry, TONE 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.
TONE Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, TONE Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TONE 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.
TONE Co's Operating Margin % for the fiscal year that ended in May. 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.
TONE Co (TSE:5967) has a Operating Margin % of 12.90% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on TONE Co and its competitors. This is 22% below median its historical median of 16.62. Over the past decade, TONE Co's Operating Margin % has ranged from 13.20 to 24.20. According to the industry distribution chart, TONE Co ranks #399 out of 3035 companies in the Industrial Products industry, placing it in the top 13.1%.
Is TONE Co's Operating Margin % too high?
TONE Co's current Operating Margin % of 12.90% is 22% below median its 10-year median of 16.62. Over the past 10 years, this metric has ranged from a low of 13.20 to a high of 24.20. The Industrial Products industry median Operating Margin % is 6.50. TONE Co's value of 12.90% is 98.5% above this industry median. Based on the distribution chart, TONE Co ranks #399 out of 3035 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, TONE Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TONE Co's Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, TONE Co ranks #399 out of 3035 companies for Operating Margin %. This places TONE Co in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.50. TONE Co's value of 12.90% is 98.5% above this benchmark. Historically, TONE Co's own Operating Margin % has ranged from 13.20 to 24.20 over the past decade. While the company's 10-year median is 16.62 vs. the industry median of 6.50, TONE 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.50, based on 3,035 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. TONE Co's current Operating Margin % of 12.90% is 98.5% 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 TONE Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TONE Co's current Operating Margin % is 12.90%, which is 22% below median its own 10-year median of 16.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TONE Co stock overvalued right now?
Based on GuruFocus' analysis, TONE Co (TSE:5967) is currently considered Modestly Undervalued. The stock's GF Value™ is 円610.90, compared to a current price of 円487.00 — trading 20.3% below its estimated fair value. The current Operating Margin % is 12.90%, which is 22% below median its 10-year median of 16.62 and 98.5% above the Industrial Products industry median of 6.50. TONE Co's overall GF Score™ is 76/100 with 3 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 TONE Co (TSE:5967), the current Operating Margin % is 12.90% as of Feb. 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 TONE Co (TSE:5967) Overvalued in 2026?
Based on GuruFocus' analysis, TONE Co stock appears to be undervalued.
The current stock price of 円487.00 is trading 20.3% below its estimated GF Value™ of 円610.90.
GuruFocus considers TONE Co to be Modestly Undervalued.
Key valuation signals for TSE:5967:
Operating Margin %: 12.90% (22% below median its 10-year median of 16.62)
GF Value™: 円610.90 vs. price of 円487.00 (20.3% below fair value)
Industry Position: 98.5% above the Industrial Products median (#399 of 3035)
No single metric tells the full story. See the TSE:5967 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TONE Co Ltd is engaged in the manufacture of work tools for the professional automotive machine direction, and industrial construction and civil engineering development, manufacturing and sales of power tools and torque management devices.
76GF Score
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