Renesas ElectronicsTSE:6723 -1.07%74 Operating Margin % is 23.81% as of Mar. 2026, which is 58% above its 10-year median of 15.10. GuruFocus rates TSE:6723 with a GF Score™ of 74/100 and a GF Value™ of 円2,308.19 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,023 Semiconductors companies, Renesas Electronics ranks better than 81.62% on this metric.
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.
Renesas Electronics Operating Margin % Related Terms
Renesas Electronics Operating Margin % Historical Data
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The historical data trend for Renesas Electronics'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:6723 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Renesas Electronics'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.
Renesas Electronics Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Renesas Electronics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Renesas Electronics'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.
Renesas Electronics'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.
Renesas Electronics (TSE:6723) has a Operating Margin % of 23.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Renesas Electronics and its competitors. This is 58% above median its historical median of 15.10. Over the past decade, Renesas Electronics' Operating Margin % has ranged from 0.87 to 28.26. According to the industry distribution chart, Renesas Electronics ranks #188 out of 1023 companies in the Semiconductors industry, placing it in the top 18.4%.
Is Renesas Electronics' Operating Margin % too high?
Renesas Electronics' current Operating Margin % of 23.81% is 58% above median its 10-year median of 15.10. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 28.26. The Semiconductors industry median Operating Margin % is 5.24. Renesas Electronics' value of 23.81% is 354.4% above this industry median. Based on the distribution chart, Renesas Electronics ranks #188 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Renesas Electronics has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Renesas Electronics' Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Renesas Electronics ranks #188 out of 1023 companies for Operating Margin %. This places Renesas Electronics in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Renesas Electronics' value of 23.81% is 354.4% above this benchmark. Historically, Renesas Electronics' own Operating Margin % has ranged from 0.87 to 28.26 over the past decade. While the company's 10-year median is 15.10 vs. the industry median of 5.24, Renesas Electronics 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 5.24, 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. Renesas Electronics's current Operating Margin % of 23.81% is 354.4% 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 Renesas Electronics and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renesas Electronics's current Operating Margin % is 23.81%, which is 58% above median its own 10-year median of 15.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renesas Electronics stock overvalued right now?
Based on GuruFocus' analysis, Renesas Electronics (TSE:6723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,308.19, compared to a current price of 円4,703.00 — trading 103.8% above its estimated fair value. The current Operating Margin % is 23.81%, which is 58% above median its 10-year median of 15.10 and 354.4% above the Semiconductors industry median of 5.24. Renesas Electronics' overall GF Score™ is 74/100 with 6 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 Renesas Electronics (TSE:6723), the current Operating Margin % is 23.81% 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 Renesas Electronics (TSE:6723) Overvalued in 2026?
Based on GuruFocus' analysis, Renesas Electronics stock appears to be overvalued.
The current stock price of 円4,703.00 is trading 103.8% above its estimated GF Value™ of 円2,308.19.
GuruFocus considers Renesas Electronics to be Significantly Overvalued.
Key valuation signals for TSE:6723:
Operating Margin %: 23.81% (58% above median its 10-year median of 15.10)
GF Value™: 円2,308.19 vs. price of 円4,703.00 (103.8% above fair value)
Industry Position: 354.4% above the Semiconductors median (#188 of 1023)
No single metric tells the full story. See the TSE:6723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renesas Electronics is a Japanese broad-based integrated device manufacturer involved in the design and manufacturing of microcontrollers and analog chips, used across automotive, industrial, enterprise, and consumer industries. Headquartered in Tokyo, the company was created through the combination of electronics business units from NEC Electronics, Mitsubishi, and Hitachi. The company's businesses are primarily focused in Asia, where they historically account for 70%-80% of its sales. Renesas is the third- and ninth-largest manufacturer of MCUs and power/analog devices, with a 17% and 3.5% market share, respectively, as of 2024.
74GF Score
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