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Nippon Gear CoTSE:6356 +0.31%71 Operating Margin % is 31.99% as of Mar. 2026, which is 244% above its 10-year median of 9.31. GuruFocus rates TSE:6356 with a GF Score™ of 71/100 and a GF Value™ of 円590.21 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,329 Vehicles & Parts companies, Nippon Gear Co ranks better than 97.74% on this metric.
Nippon Gear Co (TSE:6356) 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.
Nippon Gear Co Operating Margin % Related Terms
Nippon Gear Co Operating Margin % Historical Data
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The historical data trend for Nippon Gear 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:6356 vs ORLY, AZO, GPC: Operating Margin % Comparison
For the Auto Parts subindustry, Nippon Gear 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.
Nippon Gear Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Gear Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Gear 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.
Nippon Gear Co'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.
Nippon Gear Co (TSE:6356) has a Operating Margin % of 31.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Gear Co and its competitors. This is 244% above median its historical median of 9.31. Over the past decade, Nippon Gear Co's Operating Margin % has ranged from 1.57 to 26.07. According to the industry distribution chart, Nippon Gear Co ranks #30 out of 1329 companies in the Vehicles & Parts industry, placing it in the top 2.3%.
Is Nippon Gear Co's Operating Margin % too high?
Nippon Gear Co's current Operating Margin % of 31.99% is 244% above median its 10-year median of 9.31. Over the past 10 years, this metric has ranged from a low of 1.57 to a high of 26.07. The Vehicles & Parts industry median Operating Margin % is 4.87. Nippon Gear Co's value of 31.99% is 556.9% above this industry median. Based on the distribution chart, Nippon Gear Co ranks #30 out of 1329 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Gear Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gear Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nippon Gear Co ranks #30 out of 1329 companies for Operating Margin %. This places Nippon Gear Co in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.87. Nippon Gear Co's value of 31.99% is 556.9% above this benchmark. Historically, Nippon Gear Co's own Operating Margin % has ranged from 1.57 to 26.07 over the past decade. While the company's 10-year median is 9.31 vs. the industry median of 4.87, Nippon Gear 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.87, based on 1,329 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. Nippon Gear Co's current Operating Margin % of 31.99% is 556.9% 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 Nippon Gear Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Gear Co's current Operating Margin % is 31.99%, which is 244% above median its own 10-year median of 9.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gear Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gear Co (TSE:6356) is currently considered Significantly Overvalued. The stock's GF Value™ is 円590.21, compared to a current price of 円1,303.00 — trading 120.8% above its estimated fair value. The current Operating Margin % is 31.99%, which is 244% above median its 10-year median of 9.31 and 556.9% above the Vehicles & Parts industry median of 4.87. Nippon Gear Co's overall GF Score™ is 71/100 with 1 warning sign 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 Nippon Gear Co (TSE:6356), the current Operating Margin % is 31.99% 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 Nippon Gear Co (TSE:6356) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Gear Co stock appears to be overvalued.
The current stock price of 円1,303.00 is trading 120.8% above its estimated GF Value™ of 円590.21.
GuruFocus considers Nippon Gear Co to be Significantly Overvalued.
Key valuation signals for TSE:6356:
Operating Margin %: 31.99% (244% above median its 10-year median of 9.31)
GF Value™: 円590.21 vs. price of 円1,303.00 (120.8% above fair value)
Industry Position: 556.9% above the Vehicles & Parts median (#30 of 1329)
No single metric tells the full story. See the TSE:6356 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.
71GF Score
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