Kokusai ElectricTSE:6525 -1.54%32 Operating Margin % is 15.02% as of Mar. 2026, which is 30% below its 10-year median of 21.48. GuruFocus rates TSE:6525 with a GF Score™ of 32/100 and a GF Value™ of 円4,169.54 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,023 Semiconductors companies, Kokusai Electric ranks better than 78.59% on this metric.
Kokusai Electric (TSE:6525) 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.
Kokusai Electric Operating Margin % Related Terms
Kokusai Electric Operating Margin % Historical Data
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The historical data trend for Kokusai Electric'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:6525 vs LRCX, AMAT, KLAC: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Kokusai Electric'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.
Kokusai Electric Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Kokusai Electric's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kokusai Electric'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.
Kokusai Electric'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.
Kokusai Electric (TSE:6525) has a Operating Margin % of 15.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kokusai Electric and its competitors. This is 30% below median its historical median of 21.48. Over the past decade, Kokusai Electric's Operating Margin % has ranged from 17.00 to 28.79. According to the industry distribution chart, Kokusai Electric ranks #219 out of 1023 companies in the Semiconductors industry, placing it in the top 21.4%.
Is Kokusai Electric's Operating Margin % too high?
Kokusai Electric's current Operating Margin % of 15.02% is 30% below median its 10-year median of 21.48. Over the past 10 years, this metric has ranged from a low of 17.00 to a high of 28.79. The Semiconductors industry median Operating Margin % is 5.18. Kokusai Electric's value of 15.02% is 190% above this industry median. Based on the distribution chart, Kokusai Electric ranks #219 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Kokusai Electric has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kokusai Electric's Operating Margin % compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, Kokusai Electric ranks #219 out of 1023 companies for Operating Margin %. This places Kokusai Electric in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.18. Kokusai Electric's value of 15.02% is 190% above this benchmark. Historically, Kokusai Electric's own Operating Margin % has ranged from 17.00 to 28.79 over the past decade. While the company's 10-year median is 21.48 vs. the industry median of 5.18, Kokusai Electric 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 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. Kokusai Electric's current Operating Margin % of 15.02% is 190% 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 Kokusai Electric and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kokusai Electric's current Operating Margin % is 15.02%, which is 30% below median its own 10-year median of 21.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kokusai Electric stock overvalued right now?
Based on GuruFocus' analysis, Kokusai Electric (TSE:6525) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,169.54, compared to a current price of 円9,128.00 — trading 118.9% above its estimated fair value. The current Operating Margin % is 15.02%, which is 30% below median its 10-year median of 21.48 and 190% above the Semiconductors industry median of 5.18. Kokusai Electric's overall GF Score™ is 32/100 with 5 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 Kokusai Electric (TSE:6525), the current Operating Margin % is 15.02% 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 Kokusai Electric (TSE:6525) Overvalued in 2026?
Based on GuruFocus' analysis, Kokusai Electric stock appears to be overvalued.
The current stock price of 円9,128.00 is trading 118.9% above its estimated GF Value™ of 円4,169.54.
GuruFocus considers Kokusai Electric to be Significantly Overvalued.
Key valuation signals for TSE:6525:
Operating Margin %: 15.02% (30% below median its 10-year median of 21.48)
GF Value™: 円4,169.54 vs. price of 円9,128.00 (118.9% above fair value)
Industry Position: 190% above the Semiconductors median (#219 of 1023)
No single metric tells the full story. See the TSE:6525 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kokusai Electric Corp is engaged in the semiconductor manufacturing equipment business. The company operates as a single business segment focused on the development, manufacture, and supply of semiconductor production equipment used in the fabrication of electronic components. The main products include batch film deposition equipment, treatment equipment for film quality improvement, units for measuring instruments and cleaning equipment, and others.
32GF Score
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