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SMKTSE:6798 -0.78%60 Operating Margin % is 2.18% as of Mar. 2026, which is 156% above its 10-year median of 0.85. GuruFocus rates TSE:6798 with a GF Score™ of 60/100 and a GF Value™ of 円2,427.60 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,479 Hardware companies, SMK ranks worse than 65.43% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SMK's Operating Income for the
six
months ended in Mar. 2026 was 円547 Mil. SMK's Revenue for the
six
months ended in Mar. 2026 was 円25,052 Mil. Therefore, SMK's Operating Margin % for the quarter that ended in Mar. 2026 was 2.18%.
The historical rank and industry rank for SMK's Operating Margin % or its related term are showing as below:
TSE:6798'
s Operating Margin % Range Over the Past 10 Years
Min: -3.2 Med: 0.85 Max: 2.21
Current: 0.89
TSE:6798's Operating Margin % is ranked worse than 65.43% of 2479
companies
in the Hardware industry
Industry Median: 3.8
vs TSE:6798: 0.89
SMK's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
SMK's Operating Income for the
six
months ended in Mar. 2026 was 円547 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円430 Mil.
Warning Sign:
SMK Corp had lost money in 67% of the time over the past 3quarters.
SMK (TSE:6798) 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.
SMK Operating Margin % Related Terms
SMK Operating Margin % Historical Data
* Premium members only.
The historical data trend for SMK'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:6798 vs APH, GLW: Operating Margin % Comparison
For the Electronic Components subindustry, SMK'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.
SMK Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, SMK's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SMK'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.
SMK'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.
SMK (TSE:6798) has a Operating Margin % of 2.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SMK and its competitors. This is 156% above median its historical median of 0.85. According to the industry distribution chart, SMK ranks #1622 out of 2479 companies in the Hardware industry, placing it in the top 65.4%.
Is SMK's Operating Margin % too high?
SMK's current Operating Margin % of 2.18% is 156% above median its 10-year median of 0.85. The Hardware industry median Operating Margin % is 3.80. SMK's value of 2.18% is 42.6% below this industry median. Based on the distribution chart, SMK ranks #1622 out of 2479 companies in the Hardware industry, which is below the industry midpoint. Overall, SMK has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SMK's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, SMK ranks #1622 out of 2479 companies for Operating Margin %. This places SMK in the lower half of its industry. The industry median Operating Margin % is 3.80. SMK's value of 2.18% is 42.6% below this benchmark. While the company's 10-year median is 0.85 vs. the industry median of 3.80, SMK 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 3.80, based on 2,479 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. SMK's current Operating Margin % of 2.18% is 42.6% 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 SMK 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. SMK's current Operating Margin % is 2.18%, which is 156% above median its own 10-year median of 0.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMK stock overvalued right now?
Based on GuruFocus' analysis, SMK (TSE:6798) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,427.60, compared to a current price of 円2,918.00 — trading 20.2% above its estimated fair value. The current Operating Margin % is 2.18%, which is 156% above median its 10-year median of 0.85 and 42.6% below the Hardware industry median of 3.80. SMK's overall GF Score™ is 60/100 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 SMK (TSE:6798), the current Operating Margin % is 2.18% 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 SMK (TSE:6798) Overvalued in 2026?
Based on GuruFocus' analysis, SMK stock appears to be overvalued.
The current stock price of 円2,918.00 is trading 20.2% above its estimated GF Value™ of 円2,427.60.
GuruFocus considers SMK to be Modestly Overvalued.
Key valuation signals for TSE:6798:
Operating Margin %: 2.18% (156% above median its 10-year median of 0.85)
GF Value™: 円2,427.60 vs. price of 円2,918.00 (20.2% above fair value)
Industry Position: 42.6% below the Hardware median (#1622 of 2479)
No single metric tells the full story. See the TSE:6798 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMK Corp manufactures and sells parts for the electrocommunication device and electronic equipment. Its reportable segments include Connection System; Sensing, Communications and Interface; Research and Development Center, Innovation Centers, and others. The company generates maximum revenue from the Sensing, Communications, and Interface segment, which produces and sells remote controls, switches, camera modules, and touch sensors. Geographically, it derives a majority of its revenue from Japan. The company's product portfolio includes connectors, plugs/jacks, switches, accessories, remote control units, antennas, touch panels, and communication modules.
60GF Score
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