Elecom CoTSE:6750 +1.99%78 Operating Margin % is 12.25% as of Dec. 2025, which is 3% above its 10-year median of 11.85. GuruFocus rates TSE:6750 with a GF Score™ of 78/100 and a GF Value™ of 円1,970.23 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,472 Hardware companies, Elecom Co ranks better than 80.34% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Elecom Co's Operating Income for the
three
months ended in Dec. 2025 was 円4,464 Mil. Elecom Co's Revenue for the
three
months ended in Dec. 2025 was 円36,437 Mil. Therefore, Elecom Co's Operating Margin % for the quarter that ended in Dec. 2025 was 12.25%.
Warning Sign:
Elecom Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.2%.
The historical rank and industry rank for Elecom Co's Operating Margin % or its related term are showing as below:
TSE:6750'
s Operating Margin % Range Over the Past 10 Years
Min: 10.9 Med: 11.85 Max: 14.12
Current: 11.75
TSE:6750's Operating Margin % is ranked better than 80.34% of 2472
companies
in the Hardware industry
Industry Median: 3.8
vs TSE:6750: 11.75
Elecom Co's 5-Year Average Operating Margin % Growth Rate was -5.20% per year.
Elecom Co's Operating Income for the
three
months ended in Dec. 2025 was 円4,464 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円15,525 Mil.
Elecom Co (TSE:6750) 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.
Elecom Co Operating Margin % Related Terms
Elecom Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Elecom 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:6750 vs DELL, SNDK, ANET: Operating Margin % Comparison
For the Computer Hardware subindustry, Elecom 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.
Elecom Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Elecom Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Elecom 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.
Elecom Co's Operating Margin % for the fiscal year that ended in Mar. 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.
Elecom Co (TSE:6750) has a Operating Margin % of 12.25% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Elecom Co and its competitors. This is near median its historical median of 11.85. Over the past decade, Elecom Co's Operating Margin % has ranged from 10.90 to 14.12. According to the industry distribution chart, Elecom Co ranks #486 out of 2472 companies in the Hardware industry, placing it in the top 19.7%.
Is Elecom Co's Operating Margin % too high?
Elecom Co's current Operating Margin % of 12.25% is near median its 10-year median of 11.85. Over the past 10 years, this metric has ranged from a low of 10.90 to a high of 14.12. The Hardware industry median Operating Margin % is 3.80. Elecom Co's value of 12.25% is 222.4% above this industry median. Based on the distribution chart, Elecom Co ranks #486 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Elecom Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Elecom Co's Operating Margin % compare to DELL and SNDK?
According to the Hardware industry distribution chart, Elecom Co ranks #486 out of 2472 companies for Operating Margin %. This places Elecom Co in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Elecom Co's value of 12.25% is 222.4% above this benchmark. Historically, Elecom Co's own Operating Margin % has ranged from 10.90 to 14.12 over the past decade. While the company's 10-year median is 11.85 vs. the industry median of 3.80, Elecom Co 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, 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. Elecom Co's current Operating Margin % of 12.25% is 222.4% 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 Elecom 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. Elecom Co's current Operating Margin % is 12.25%, which is near median its own 10-year median of 11.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elecom Co stock overvalued right now?
Based on GuruFocus' analysis, Elecom Co (TSE:6750) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,970.23, compared to a current price of 円1,742.00 — trading 11.6% below its estimated fair value. The current Operating Margin % is 12.25%, which is near median its 10-year median of 11.85 and 222.4% above the Hardware industry median of 3.80. Elecom Co's overall GF Score™ is 78/100 with 3 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 Elecom Co (TSE:6750), the current Operating Margin % is 12.25% 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 Elecom Co (TSE:6750) Overvalued in 2026?
Based on GuruFocus' analysis, Elecom Co stock appears to be undervalued.
The current stock price of 円1,742.00 is trading 11.6% below its estimated GF Value™ of 円1,970.23.
GuruFocus considers Elecom Co to be Modestly Undervalued.
Key valuation signals for TSE:6750:
Operating Margin %: 12.25% (near median its 10-year median of 11.85)
GF Value™: 円1,970.23 vs. price of 円1,742.00 (11.6% below fair value)
Industry Position: 222.4% above the Hardware median (#486 of 2472)
No single metric tells the full story. See the TSE:6750 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elecom Co Ltd is a Japan-based company which is engaged in the development, manufacture and sale of personal computer- and digital-equipment-related products through its subsidiaries. Its products portfolio includes personal computers, smartphones, televisions, digital photo frames, batteries, weight scales, digital cameras, digital video cameras, electronic dictionaries, speakers, game machines, light-emitting diode (LED) lighting devices, and others. The company also supplies peripherals, I/O devices, and PC accessories, such as mouse pads, mice and keyboards.
78GF Score
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