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Union Tool CoTSE:6278 -8.63%79 Operating Margin % is 17.39% as of Dec. 2025, which is 5% above its 10-year median of 16.64. GuruFocus rates TSE:6278 with a GF Score™ of 79/100 and a GF Value™ of 円7,748.96 (Significantly Overvalued). Among 3,031 Industrial Products companies, Union Tool Co ranks better than 94.46% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Union Tool Co's Operating Income for the
three
months ended in Dec. 2025 was 円2,113 Mil. Union Tool Co's Revenue for the
three
months ended in Dec. 2025 was 円12,150 Mil. Therefore, Union Tool Co's Operating Margin % for the quarter that ended in Dec. 2025 was 17.39%.
Good Sign:
Union Tool Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Union Tool Co's Operating Margin % or its related term are showing as below:
TSE:6278'
s Operating Margin % Range Over the Past 10 Years
Min: 12.55 Med: 16.64 Max: 22.91
Current: 22.91
TSE:6278's Operating Margin % is ranked better than 94.46% of 3031
companies
in the Industrial Products industry
Industry Median: 6.51
vs TSE:6278: 22.91
Union Tool Co's 5-Year Average Operating Margin % Growth Rate was 7.90% per year.
Union Tool Co's Operating Income for the
three
months ended in Dec. 2025 was 円2,113 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円10,061 Mil.
Union Tool Co (TSE:6278) 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.
Union Tool Co Operating Margin % Related Terms
Union Tool Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Union Tool 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:6278 vs SNA, RBC, LECO: Operating Margin % Comparison
For the Tools & Accessories subindustry, Union Tool 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.
Union Tool Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Union Tool Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Union Tool 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.
Union Tool Co's Operating Margin % for the fiscal year that ended in Dec. 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.
Union Tool Co (TSE:6278) has a Operating Margin % of 17.39% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Union Tool Co and its competitors. This is near median its historical median of 16.64. Over the past decade, Union Tool Co's Operating Margin % has ranged from 12.55 to 22.91. According to the industry distribution chart, Union Tool Co ranks #168 out of 3031 companies in the Industrial Products industry, placing it in the top 5.5%.
Is Union Tool Co's Operating Margin % too high?
Union Tool Co's current Operating Margin % of 17.39% is near median its 10-year median of 16.64. Over the past 10 years, this metric has ranged from a low of 12.55 to a high of 22.91. The Industrial Products industry median Operating Margin % is 6.51. Union Tool Co's value of 17.39% is 167.1% above this industry median. Based on the distribution chart, Union Tool Co ranks #168 out of 3031 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Union Tool Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Union Tool Co's Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Union Tool Co ranks #168 out of 3031 companies for Operating Margin %. This places Union Tool Co in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.51. Union Tool Co's value of 17.39% is 167.1% above this benchmark. Historically, Union Tool Co's own Operating Margin % has ranged from 12.55 to 22.91 over the past decade. While the company's 10-year median is 16.64 vs. the industry median of 6.51, Union Tool 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 6.51, based on 3,031 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. Union Tool Co's current Operating Margin % of 17.39% is 167.1% 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 Union Tool Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union Tool Co's current Operating Margin % is 17.39%, which is near median its own 10-year median of 16.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union Tool Co stock overvalued right now?
Based on GuruFocus' analysis, Union Tool Co (TSE:6278) is currently considered Significantly Overvalued. The stock's GF Value™ is 円7,748.96, compared to a current price of 円17,250.00 — trading 122.6% above its estimated fair value. The current Operating Margin % is 17.39%, which is near median its 10-year median of 16.64 and 167.1% above the Industrial Products industry median of 6.51. Union Tool Co's overall GF Score™ is 79/100. 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 Union Tool Co (TSE:6278), the current Operating Margin % is 17.39% as of Dec. 2025. 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 Union Tool Co (TSE:6278) Overvalued in 2026?
Based on GuruFocus' analysis, Union Tool Co stock appears to be overvalued.
The current stock price of 円17,250.00 is trading 122.6% above its estimated GF Value™ of 円7,748.96.
GuruFocus considers Union Tool Co to be Significantly Overvalued.
Key valuation signals for TSE:6278:
Operating Margin %: 17.39% (near median its 10-year median of 16.64)
GF Value™: 円7,748.96 vs. price of 円17,250.00 (122.6% above fair value)
Industry Position: 167.1% above the Industrial Products median (#168 of 3031)
No single metric tells the full story. See the TSE:6278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Union Tool Co is a designer and manufacturer of industrial cutting tools to a broad sector of the global industry. The company's key product includes carbide drill used in the manufacture of Printed Circuit Boards, found in all modern electronics. It also manufactures precision machinery including linear motion guides, diesinking end-mills, and digital measuring equipment for industrial use. The company has operations in Japan, Asia, North America and Europe.
79GF Score
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