Operating Margin % is calculated as Operating Income divided by its Revenue. Japan Display's Operating Income for the
three
months ended in Mar. 2026 was 円36 Mil. Japan Display's Revenue for the
three
months ended in Mar. 2026 was 円35,052 Mil. Therefore, Japan Display's Operating Margin % for the quarter that ended in Mar. 2026 was 0.10%.
Warning Sign:
Japan Display Inc operating margin has been in a 5-year decline. The average rate of decline per year is -28.1%.
The historical rank and industry rank for Japan Display's Operating Margin % or its related term are showing as below:
TSE:6740'
s Operating Margin % Range Over the Past 10 Years
Min: -19.72 Med: -8.15 Max: 2.09
Current: -14.13
TSE:6740's Operating Margin % is ranked worse than 84.63% of 2472
companies
in the Hardware industry
Industry Median: 3.81
vs TSE:6740: -14.13
Japan Display's 5-Year Average Operating Margin % Growth Rate was -28.10% per year.
Japan Display's Operating Income for the
three
months ended in Mar. 2026 was 円36 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円-18,693 Mil.
Warning Sign:
Japan Display Inc had lost money in 92% of the time over the past 12quarters.
Japan Display (TSE:6740) 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.
Japan Display Operating Margin % Related Terms
Japan Display Operating Margin % Historical Data
* Premium members only.
The historical data trend for Japan Display'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:6740 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Japan Display'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.
Japan Display Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Japan Display's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Display'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.
Japan Display'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.
Japan Display (TSE:6740) has a Operating Margin % of 0.10% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Display and its competitors. According to the industry distribution chart, Japan Display ranks #2092 out of 2472 companies in the Hardware industry, placing it in the top 84.6%.
Is Japan Display's Operating Margin % too high?
Japan Display's current Operating Margin % is 0.10%. The Hardware industry median Operating Margin % is 3.81. Japan Display's value of 0.10% is 97.4% below this industry median. Based on the distribution chart, Japan Display ranks #2092 out of 2472 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Japan Display has a GF Score™ of 25/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Display's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Japan Display ranks #2092 out of 2472 companies for Operating Margin %. This places Japan Display in the lower half of its industry. The industry median Operating Margin % is 3.81. Japan Display's value of 0.10% is 97.4% below 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 3.81, 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. Japan Display's current Operating Margin % of 0.10% is 97.4% 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 Japan Display 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. Japan Display's current Operating Margin % is 0.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Display stock overvalued right now?
Based on GuruFocus' analysis, Japan Display (TSE:6740) is currently considered Significantly Overvalued. The stock's GF Value™ is 円9.67, compared to a current price of 円60.00 — trading 520.5% above its estimated fair value. The current Operating Margin % is 0.10% and 97.4% below the Hardware industry median of 3.81. Japan Display's overall GF Score™ is 25/100 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 Japan Display (TSE:6740), the current Operating Margin % is 0.10% 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 Japan Display (TSE:6740) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Display stock appears to be overvalued.
The current stock price of 円60.00 is trading 520.5% above its estimated GF Value™ of 円9.67.
GuruFocus considers Japan Display to be Significantly Overvalued.
Key valuation signals for TSE:6740:
Operating Margin %: 0.10%
GF Value™: 円9.67 vs. price of 円60.00 (520.5% above fair value)
Industry Position: 97.4% below the Hardware median (#2092 of 2472)
No single metric tells the full story. See the TSE:6740 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Display Inc is engaged in the development, production, and sale of small and medium-sized display devices and related products. Its products are divided into two categories: Mobile Device and Automotive and Non-Mobile. The Mobile Device category includes displays for smartphones, tablets and mobile phone devices. The Automotive and Non-Mobile category includes displays for automotive applications, consumer electronics, and industrial devices as well as income from patents and other sources. The company's business operations span across Europe, Korea, China, Philippines, America, and Hong Kong.
25GF 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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