ZoomTSE:6694 67 Operating Margin % is 0.96% as of Dec. 2025, which is 73% below its 10-year median of 3.54. GuruFocus rates TSE:6694 with a GF Score™ of 67/100 and a GF Value™ of 円772.17 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 2,472 Hardware companies, Zoom ranks worse than 68.77% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Zoom's Operating Income for the
six
months ended in Dec. 2025 was 円91 Mil. Zoom's Revenue for the
six
months ended in Dec. 2025 was 円9,455 Mil. Therefore, Zoom's Operating Margin % for the quarter that ended in Dec. 2025 was 0.96%.
The historical rank and industry rank for Zoom's Operating Margin % or its related term are showing as below:
TSE:6694'
s Operating Margin % Range Over the Past 10 Years
Min: -0.33 Med: 3.54 Max: 9.38
Current: -0.33
TSE:6694's Operating Margin % is ranked worse than 68.77% of 2472
companies
in the Hardware industry
Industry Median: 3.81
vs TSE:6694: -0.33
Zoom's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Zoom's Operating Income for the
six
months ended in Dec. 2025 was 円91 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円-57 Mil.
Warning Sign:
Zoom Corp has recorded a loss in operating income at least once over the past 3 years.
Zoom (TSE:6694) 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.
Zoom Operating Margin % Related Terms
Zoom Operating Margin % Historical Data
* Premium members only.
The historical data trend for Zoom'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.
For the Consumer Electronics subindustry, Zoom'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.
Zoom Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Zoom's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zoom'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.
Zoom'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.
Zoom (TSE:6694) has a Operating Margin % of 0.96% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zoom and its competitors. This is 73% below median its historical median of 3.54. According to the industry distribution chart, Zoom ranks #1700 out of 2472 companies in the Hardware industry, placing it in the top 68.8%.
Is Zoom's Operating Margin % too high?
Zoom's current Operating Margin % of 0.96% is 73% below median its 10-year median of 3.54. The Hardware industry median Operating Margin % is 3.81. Zoom's value of 0.96% is 74.8% below this industry median. Based on the distribution chart, Zoom ranks #1700 out of 2472 companies in the Hardware industry, which is below the industry midpoint. Overall, Zoom has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zoom's Operating Margin % compare to AAPL?
According to the Hardware industry distribution chart, Zoom ranks #1700 out of 2472 companies for Operating Margin %. This places Zoom in the lower half of its industry. The industry median Operating Margin % is 3.81. Zoom's value of 0.96% is 74.8% below this benchmark. While the company's 10-year median is 3.54 vs. the industry median of 3.81, Zoom has consistently been below 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 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. Zoom's current Operating Margin % of 0.96% is 74.8% below 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 Zoom 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. Zoom's current Operating Margin % is 0.96%, which is 73% below median its own 10-year median of 3.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoom stock overvalued right now?
Based on GuruFocus' analysis, Zoom (TSE:6694) is currently considered Modestly Undervalued. The stock's GF Value™ is 円772.17, compared to a current price of 円634.00 — trading 17.9% below its estimated fair value. The current Operating Margin % is 0.96%, which is 73% below median its 10-year median of 3.54 and 74.8% below the Hardware industry median of 3.81. Zoom's overall GF Score™ is 67/100 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 Zoom (TSE:6694), the current Operating Margin % is 0.96% 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 Zoom (TSE:6694) Overvalued in 2026?
Based on GuruFocus' analysis, Zoom stock appears to be undervalued.
The current stock price of 円634.00 is trading 17.9% below its estimated GF Value™ of 円772.17.
GuruFocus considers Zoom to be Modestly Undervalued.
Key valuation signals for TSE:6694:
Operating Margin %: 0.96% (73% below median its 10-year median of 3.54)
GF Value™: 円772.17 vs. price of 円634.00 (17.9% below fair value)
Industry Position: 74.8% below the Hardware median (#1700 of 2472)
No single metric tells the full story. See the TSE:6694 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoom Corp develops and distributes electronic musical devices. It produces recording devices, including a line of portable handy recorders as well as multi-effects processors, effects pedals, drum machines and samplers, mobile device accessory, audio interface, professional field recorder.
67GF 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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