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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Japan Electronic MaterialsTSE:6855 -1.67%78 Operating Margin % is 26.95% as of Mar. 2026, which is 152% above its 10-year median of 10.69. GuruFocus rates TSE:6855 with a GF Score™ of 78/100 and a GF Value™ of 円3,404.82 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,022 Semiconductors companies, Japan Electronic Materials ranks better than 88.75% on this metric.
Japan Electronic Materials (TSE:6855) 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 Electronic Materials Operating Margin % Related Terms
Japan Electronic Materials Operating Margin % Historical Data
* 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 Electronic Materials Operating Margin % Chart
TSE:6855 vs AMAT, LRCX, KLAC: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Japan Electronic Materials'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 Electronic Materials Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Japan Electronic Materials's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Electronic Materials's Operating Margin % falls into.
Japan Electronic Materials Operating Margin % Calculation
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 Electronic Materials'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 Electronic Materials (TSE:6855) has a Operating Margin % of 26.95% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Electronic Materials and its competitors. This is 152% above median its historical median of 10.69. Over the past decade, Japan Electronic Materials' Operating Margin % has ranged from 0.91 to 24.70. According to the industry distribution chart, Japan Electronic Materials ranks #115 out of 1022 companies in the Semiconductors industry, placing it in the top 11.3%.
Is Japan Electronic Materials' Operating Margin % too high?
Japan Electronic Materials' current Operating Margin % of 26.95% is 152% above median its 10-year median of 10.69. Over the past 10 years, this metric has ranged from a low of 0.91 to a high of 24.70. The Semiconductors industry median Operating Margin % is 5.34. Japan Electronic Materials' value of 26.95% is 404.7% above this industry median. Based on the distribution chart, Japan Electronic Materials ranks #115 out of 1022 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Electronic Materials has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Electronic Materials' Operating Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Japan Electronic Materials ranks #115 out of 1022 companies for Operating Margin %. This places Japan Electronic Materials in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.34. Japan Electronic Materials' value of 26.95% is 404.7% above this benchmark. Historically, Japan Electronic Materials' own Operating Margin % has ranged from 0.91 to 24.70 over the past decade. While the company's 10-year median is 10.69 vs. the industry median of 5.34, Japan Electronic Materials 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 5.34, based on 1,022 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 Electronic Materials's current Operating Margin % of 26.95% is 404.7% 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 Japan Electronic Materials and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Electronic Materials's current Operating Margin % is 26.95%, which is 152% above median its own 10-year median of 10.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Electronic Materials stock overvalued right now?
Based on GuruFocus' analysis, Japan Electronic Materials (TSE:6855) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,404.82, compared to a current price of 円7,080.00 — trading 107.9% above its estimated fair value. The current Operating Margin % is 26.95%, which is 152% above median its 10-year median of 10.69 and 404.7% above the Semiconductors industry median of 5.34. Japan Electronic Materials' overall GF Score™ is 78/100 with 2 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 Electronic Materials (TSE:6855), the current Operating Margin % is 26.95% 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 Electronic Materials (TSE:6855) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Electronic Materials stock appears to be overvalued.
The current stock price of 円7,080.00 is trading 107.9% above its estimated GF Value™ of 円3,404.82.
GuruFocus considers Japan Electronic Materials to be Significantly Overvalued.
Key valuation signals for TSE:6855:
Operating Margin %: 26.95% (152% above median its 10-year median of 10.69)
GF Value™: 円3,404.82 vs. price of 円7,080.00 (107.9% above fair value)
Industry Position: 404.7% above the Semiconductors median (#115 of 1022)
No single metric tells the full story. See the TSE:6855 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Electronic Materials Corp is engaged in the development, manufacture, and sale of semiconductor testing components and electron tube components in Japan. Its product portfolio comprises heaters and cathodes for receiving tubes and CRTs, filaments for fluorescent display tubes, directly heated cathodes, and probe cards, among others. The group's business segments are Semiconductor inspection parts related business, which derives maximum revenue, and Electron tube parts related business.
78GF Score
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