ERI HOLDINGS Co (TSE:6083) Operating Margin %: 21.67% (As of Feb. 2026) — 174% Above Median

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TSE:6083 ERI HOLDINGS Co Ltd TSE:6083
93 GF Score
Price 円1,694.00
GF Value 円1,082.76
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is ERI HOLDINGS Co Operating Margin %?

ERI HOLDINGS Co TSE:6083 +0.95% 93 Operating Margin % is 21.67% as of Feb. 2026, which is 174% above its 10-year median of 7.90. GuruFocus rates TSE:6083 with a GF Score™ of 93/100 and a GF Value™ of 円1,082.76 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,067 Business Services companies, ERI HOLDINGS Co ranks better than 86.88% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. ERI HOLDINGS Co's Operating Income for the three months ended in Feb. 2026 was 円1,354 Mil. ERI HOLDINGS Co's Revenue for the three months ended in Feb. 2026 was 円6,246 Mil. Therefore, ERI HOLDINGS Co's Operating Margin % for the quarter that ended in Feb. 2026 was 21.67%.

Good Sign:

ERI HOLDINGS Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for ERI HOLDINGS Co's Operating Margin % or its related term are showing as below:

TSE:6083' s Operating Margin % Range Over the Past 10 Years
Min: 2.55   Med: 7.9   Max: 20.01
Current: 20.01


TSE:6083's Operating Margin % is ranked better than
86.88% of 1067 companies
in the Business Services industry
Industry Median: 6.37 vs TSE:6083: 20.01

ERI HOLDINGS Co's 5-Year Average Operating Margin % Growth Rate was 30.10% per year.

ERI HOLDINGS Co's Operating Income for the three months ended in Feb. 2026 was 円1,354 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円4,944 Mil.


ERI HOLDINGS Co  (TSE:6083) 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 Nokia’s 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.


ERI HOLDINGS Co Operating Margin % Related Terms


ERI HOLDINGS Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for ERI HOLDINGS 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.

ERI HOLDINGS Co Operating Margin % Chart

ERI HOLDINGS Co Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.92 13.36 11.05 10.35 20.01

ERI HOLDINGS Co Quarterly Data
Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 May25 Aug25 Nov25 Feb26 May26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 16.13 20.29 21.67 21.26

TSE:6083 vs CTAS, CPRT, GPN: Operating Margin % Comparison

For the Specialty Business Services subindustry, ERI HOLDINGS 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.


ERI HOLDINGS Co Operating Margin % vs Business Services Industry

For the Business Services industry and Industrials sector, ERI HOLDINGS Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where ERI HOLDINGS Co's Operating Margin % falls into.


TSE:6083
93GF Score
ERI HOLDINGS Co Ltd TSE:6083
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ERI HOLDINGS Co Operating Margin % Calculation

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.

ERI HOLDINGS Co's Operating Margin % for the fiscal year that ended in May. 2026 is calculated as

Operating Margin %=Operating Income (A: May. 2026 ) / Revenue (A: May. 2026 )
=4943.79 / 24704.39
=20.01 %

ERI HOLDINGS Co's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2026 ) / Revenue (Q: Feb. 2026 )
=1353.595 / 6246
=21.67 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 21.67% mean?
ERI HOLDINGS Co (TSE:6083) has a Operating Margin % of 21.67% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ERI HOLDINGS Co and its competitors. This is 174% above median its historical median of 7.90. Over the past decade, ERI HOLDINGS Co's Operating Margin % has ranged from 2.55 to 20.01. According to the industry distribution chart, ERI HOLDINGS Co ranks #140 out of 1067 companies in the Business Services industry, placing it in the top 13.1%.
Is ERI HOLDINGS Co's Operating Margin % too high?
ERI HOLDINGS Co's current Operating Margin % of 21.67% is 174% above median its 10-year median of 7.90. Over the past 10 years, this metric has ranged from a low of 2.55 to a high of 20.01. The Business Services industry median Operating Margin % is 6.37. ERI HOLDINGS Co's value of 21.67% is 240.2% above this industry median. Based on the distribution chart, ERI HOLDINGS Co ranks #140 out of 1067 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, ERI HOLDINGS Co has a GF Score™ of 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ERI HOLDINGS Co's Operating Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, ERI HOLDINGS Co ranks #140 out of 1067 companies for Operating Margin %. This places ERI HOLDINGS Co in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.37. ERI HOLDINGS Co's value of 21.67% is 240.2% above this benchmark. Historically, ERI HOLDINGS Co's own Operating Margin % has ranged from 2.55 to 20.01 over the past decade. While the company's 10-year median is 7.90 vs. the industry median of 6.37, ERI HOLDINGS 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.37, based on 1,067 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. ERI HOLDINGS Co's current Operating Margin % of 21.67% is 240.2% 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 ERI HOLDINGS Co and its competitors. For the Business Services industry, the median Operating Margin % is 6.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ERI HOLDINGS Co's current Operating Margin % is 21.67%, which is 174% above median its own 10-year median of 7.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ERI HOLDINGS Co stock overvalued right now?
Based on GuruFocus' analysis, ERI HOLDINGS Co (TSE:6083) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,082.76, compared to a current price of 円1,694.00 — trading 56.5% above its estimated fair value. The current Operating Margin % is 21.67%, which is 174% above median its 10-year median of 7.90 and 240.2% above the Business Services industry median of 6.37. ERI HOLDINGS Co's overall GF Score™ is 93/100 with 2 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 ERI HOLDINGS Co (TSE:6083), the current Operating Margin % is 21.67% 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 ERI HOLDINGS Co (TSE:6083) Overvalued in 2026?

Based on GuruFocus' analysis, ERI HOLDINGS Co stock appears to be overvalued. The current stock price of 円1,694.00 is trading 56.5% above its estimated GF Value™ of 円1,082.76. GuruFocus considers ERI HOLDINGS Co to be Significantly Overvalued.

Key valuation signals for TSE:6083:

  • Operating Margin %: 21.67% (174% above median its 10-year median of 7.90)
  • GF Value™: 円1,082.76 vs. price of 円1,694.00 (56.5% above fair value)
  • GF Score™: 93/100 with 2 warning signs
  • Industry Position: 240.2% above the Business Services median (#140 of 1067)

No single metric tells the full story. See the TSE:6083 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ERI HOLDINGS Co Business Description

Address 8-10-24 Akasaka, Minato-ku, Sumitomo Real Estate Aoyama Building, South Wing, 6th floor, Tokyo, JPN, 107-0052
ERI HOLDINGS Co Ltd is engaged in providing business services. The business of the company includes confirmation inspection business based on building confirmation and building standard law, housing performance evaluation and related business, and solution business during construction which include due diligence and technical review. Its segments into three reportable segments: Inspection and related businesses, Housing performance evaluation and related businesses, and Solution businesses.
93GF Score

Get the complete analysis for TSE:6083

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,694.00
Price
円1,082.76
GF Value