Taihei Machinery WorksTSE:6342 -0.61%81 Operating Margin % is 3.08% as of Mar. 2026, which is 72% below its 10-year median of 11.19. GuruFocus rates TSE:6342 with a GF Score™ of 81/100 and a GF Value™ of 円2,519.38 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 282 Forest Products companies, Taihei Machinery Works ranks better than 82.98% on this metric.
Taihei Machinery Works (TSE:6342) 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.
Taihei Machinery Works Operating Margin % Related Terms
Taihei Machinery Works Operating Margin % Historical Data
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The historical data trend for Taihei Machinery Works'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:6342 vs SSD, UFPI, BCC: Operating Margin % Comparison
For the Lumber & Wood Production subindustry, Taihei Machinery Works'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.
Taihei Machinery Works Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Taihei Machinery Works's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taihei Machinery Works's Operating Margin % falls into.
Taihei Machinery Works 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.
Taihei Machinery Works'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.
Taihei Machinery Works (TSE:6342) has a Operating Margin % of 3.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Taihei Machinery Works and its competitors. This is 72% below median its historical median of 11.19. According to the industry distribution chart, Taihei Machinery Works ranks #48 out of 282 companies in the Forest Products industry, placing it in the top 17%.
Is Taihei Machinery Works' Operating Margin % too high?
Taihei Machinery Works' current Operating Margin % of 3.08% is 72% below median its 10-year median of 11.19. The Forest Products industry median Operating Margin % is 2.60. Taihei Machinery Works' value of 3.08% is 18.7% above this industry median. Based on the distribution chart, Taihei Machinery Works ranks #48 out of 282 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Taihei Machinery Works has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taihei Machinery Works' Operating Margin % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, Taihei Machinery Works ranks #48 out of 282 companies for Operating Margin %. This places Taihei Machinery Works in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.60. Taihei Machinery Works' value of 3.08% is 18.7% above this benchmark. While the company's 10-year median is 11.19 vs. the industry median of 2.60, Taihei Machinery Works 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.60, based on 282 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. Taihei Machinery Works's current Operating Margin % of 3.08% is 18.7% 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 Taihei Machinery Works and its competitors. For the Forest Products industry, the median Operating Margin % is 2.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taihei Machinery Works's current Operating Margin % is 3.08%, which is 72% below median its own 10-year median of 11.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taihei Machinery Works stock overvalued right now?
Based on GuruFocus' analysis, Taihei Machinery Works (TSE:6342) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,519.38, compared to a current price of 円2,792.00 — trading 10.8% above its estimated fair value. The current Operating Margin % is 3.08%, which is 72% below median its 10-year median of 11.19 and 18.7% above the Forest Products industry median of 2.60. Taihei Machinery Works' overall GF Score™ is 81/100 with 6 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 Taihei Machinery Works (TSE:6342), the current Operating Margin % is 3.08% 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 Taihei Machinery Works (TSE:6342) Overvalued in 2026?
Based on GuruFocus' analysis, Taihei Machinery Works stock appears to be overvalued.
The current stock price of 円2,792.00 is trading 10.8% above its estimated GF Value™ of 円2,519.38.
GuruFocus considers Taihei Machinery Works to be Modestly Overvalued.
Key valuation signals for TSE:6342:
Operating Margin %: 3.08% (72% below median its 10-year median of 11.19)
GF Value™: 円2,519.38 vs. price of 円2,792.00 (10.8% above fair value)
Industry Position: 18.7% above the Forest Products median (#48 of 282)
No single metric tells the full story. See the TSE:6342 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taihei Machinery Works Ltd is engaged in the manufacturing and sale of plywood and woodworking machines. It offers plywood plant equipment, LVL production machines, knife grinding machines, chargers, reeling apparatus and dryers among others.
81GF Score
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