Taiyo Technolex Co (TSE:6663) 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.
Taiyo Technolex Co Operating Margin % Related Terms
Taiyo Technolex Co Operating Margin % Historical Data
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The historical data trend for Taiyo Technolex 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:6663 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Taiyo Technolex 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.
Taiyo Technolex Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Taiyo Technolex Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taiyo Technolex 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.
Taiyo Technolex 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.
Taiyo Technolex Co (TSE:6663) has a Operating Margin % of 9.33% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Taiyo Technolex Co and its competitors. According to the industry distribution chart, Taiyo Technolex Co ranks #1235 out of 2471 companies in the Hardware industry, placing it in the top 50%.
Is Taiyo Technolex Co's Operating Margin % too high?
Taiyo Technolex Co's current Operating Margin % is 9.33%. The Hardware industry median Operating Margin % is 3.80. Taiyo Technolex Co's value of 9.33% is 145.5% above this industry median. Based on the distribution chart, Taiyo Technolex Co ranks #1235 out of 2471 companies in the Hardware industry, which is above the industry midpoint. Overall, Taiyo Technolex Co has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Taiyo Technolex Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Taiyo Technolex Co ranks #1235 out of 2471 companies for Operating Margin %. This puts Taiyo Technolex Co in the upper half of its industry. The industry median Operating Margin % is 3.80. Taiyo Technolex Co's value of 9.33% is 145.5% above this benchmark. 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 3.80, based on 2,471 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. Taiyo Technolex Co's current Operating Margin % of 9.33% is 145.5% 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 Taiyo Technolex Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiyo Technolex Co's current Operating Margin % is 9.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiyo Technolex Co stock overvalued right now?
Based on GuruFocus' analysis, Taiyo Technolex Co (TSE:6663) is currently considered Fairly Valued. The stock's GF Value™ is 円335.22, compared to a current price of 円330.00 — trading 1.6% below its estimated fair value. The current Operating Margin % is 9.33% and 145.5% above the Hardware industry median of 3.80. Taiyo Technolex Co's overall GF Score™ is 64/100 with 8 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 Taiyo Technolex Co (TSE:6663), the current Operating Margin % is 9.33% 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 Taiyo Technolex Co (TSE:6663) Overvalued in 2026?
Based on GuruFocus' analysis, Taiyo Technolex Co stock appears to be undervalued.
The current stock price of 円330.00 is trading 1.6% below its estimated GF Value™ of 円335.22.
GuruFocus considers Taiyo Technolex Co to be Fairly Valued.
Key valuation signals for TSE:6663:
Operating Margin %: 9.33%
GF Value™: 円335.22 vs. price of 円330.00 (1.6% below fair value)
Industry Position: 145.5% above the Hardware median (#1235 of 2471)
No single metric tells the full story. See the TSE:6663 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiyo Technolex Co Ltd is a contract manufacturer in Japan. The company is involved in manufacture engraving and plating of various printing rolls, manufacture, engraving and plating of other rolls Manufacture and engraving of various stencils manufacture and processing of various building materials Sales of equipment related to the preceding items and manufacture and sale of various interior-related products.
64GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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