Daikoku Denki Co (TSE:6430) 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.
Daikoku Denki Co Operating Margin % Related Terms
Daikoku Denki Co Operating Margin % Historical Data
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The historical data trend for Daikoku Denki 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:6430 vs DELL, SNDK, ANET: Operating Margin % Comparison
For the Computer Hardware subindustry, Daikoku Denki 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.
Daikoku Denki Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Daikoku Denki Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Daikoku Denki 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.
Daikoku Denki 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.
Daikoku Denki Co (TSE:6430) has a Operating Margin % of -3.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Daikoku Denki Co and its competitors. Over the past decade, Daikoku Denki Co's Operating Margin % has ranged from 2.57 to 22.28. According to the industry distribution chart, Daikoku Denki Co ranks #253 out of 2472 companies in the Hardware industry, placing it in the top 10.2%.
Is Daikoku Denki Co's Operating Margin % too high?
Daikoku Denki Co's current Operating Margin % is -3.06%. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 22.28. Based on the distribution chart, Daikoku Denki Co ranks #253 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Daikoku Denki Co has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Daikoku Denki Co's Operating Margin % compare to DELL and SNDK?
According to the Hardware industry distribution chart, Daikoku Denki Co ranks #253 out of 2472 companies for Operating Margin %. This places Daikoku Denki Co in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. Historically, Daikoku Denki Co's own Operating Margin % has ranged from 2.57 to 22.28 over the past decade. 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. 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 Daikoku Denki Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daikoku Denki Co's current Operating Margin % is -3.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daikoku Denki Co stock overvalued right now?
Based on GuruFocus' analysis, Daikoku Denki Co (TSE:6430) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,343.40, compared to a current price of 円2,130.00 — trading 36.3% below its estimated fair value. The current Operating Margin % is -3.06%. Daikoku Denki Co's overall GF Score™ is 73/100 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 Daikoku Denki Co (TSE:6430), the current Operating Margin % is -3.06% 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 Daikoku Denki Co (TSE:6430) Overvalued in 2026?
Based on GuruFocus' analysis, Daikoku Denki Co stock appears to be undervalued.
The current stock price of 円2,130.00 is trading 36.3% below its estimated GF Value™ of 円3,343.40.
GuruFocus considers Daikoku Denki Co to be Significantly Undervalued.
Key valuation signals for TSE:6430:
Operating Margin %: -3.06%
GF Value™: 円3,343.40 vs. price of 円2,130.00 (36.3% below fair value)
No single metric tells the full story. See the TSE:6430 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daikoku Denki Co Ltd engages in the development, manufacture, and sale of computer systems for pachinko parlors, and the manufacture and sale of pachinko and pachislot gaming machines. The group's reportable segments are Information Systems Business and Amusement Business. The majority of its revenue is generated from the Information Systems Business, which is mainly involved in the development of computer systems for pachinko parlors, prize customer management systems, and information disclosure systems. The Amusement Business engages in the development, manufacture, and sale of display units and control units for pachinko gaming machines, as well as the sale of pachinko slot machines. In addition, it also offers parts used in gaming machines.
73GF Score
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