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Leader ElectronicsTSE:6867 -0.70%61 Operating Margin % is 3.13% as of Mar. 2026, which is 37% above its 10-year median of 2.28. GuruFocus rates TSE:6867 with a GF Score™ of 61/100 and a GF Value™ of 円510.45 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,479 Hardware companies, Leader Electronics ranks worse than 66.36% 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.
Leader Electronics Operating Margin % Related Terms
Leader Electronics Operating Margin % Historical Data
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The historical data trend for Leader 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:6867 vs COHR, KEYS, GRMN: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Leader 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.
Leader Electronics Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Leader Electronics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Leader 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.
Leader Electronics'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.
Leader Electronics (TSE:6867) has a Operating Margin % of 3.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Leader Electronics and its competitors. This is 37% above median its historical median of 2.28. According to the industry distribution chart, Leader Electronics ranks #1645 out of 2479 companies in the Hardware industry, placing it in the top 66.4%.
Is Leader Electronics' Operating Margin % too high?
Leader Electronics' current Operating Margin % of 3.13% is 37% above median its 10-year median of 2.28. The Hardware industry median Operating Margin % is 3.80. Leader Electronics' value of 3.13% is 17.6% below this industry median. Based on the distribution chart, Leader Electronics ranks #1645 out of 2479 companies in the Hardware industry, which is below the industry midpoint. Overall, Leader Electronics has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Leader Electronics' Operating Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Leader Electronics ranks #1645 out of 2479 companies for Operating Margin %. This places Leader Electronics in the lower half of its industry. The industry median Operating Margin % is 3.80. Leader Electronics' value of 3.13% is 17.6% below this benchmark. While the company's 10-year median is 2.28 vs. the industry median of 3.80, Leader Electronics 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. Leader Electronics's current Operating Margin % of 3.13% is 17.6% 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 Leader Electronics 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. Leader Electronics's current Operating Margin % is 3.13%, which is 37% above median its own 10-year median of 2.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leader Electronics stock overvalued right now?
Based on GuruFocus' analysis, Leader Electronics (TSE:6867) is currently considered Modestly Undervalued. The stock's GF Value™ is 円510.45, compared to a current price of 円426.00 — trading 16.5% below its estimated fair value. The current Operating Margin % is 3.13%, which is 37% above median its 10-year median of 2.28 and 17.6% below the Hardware industry median of 3.80. Leader Electronics' overall GF Score™ is 61/100 with 5 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 Leader Electronics (TSE:6867), the current Operating Margin % is 3.13% 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 Leader Electronics (TSE:6867) Overvalued in 2026?
Based on GuruFocus' analysis, Leader Electronics stock appears to be undervalued.
The current stock price of 円426.00 is trading 16.5% below its estimated GF Value™ of 円510.45.
GuruFocus considers Leader Electronics to be Modestly Undervalued.
Key valuation signals for TSE:6867:
Operating Margin %: 3.13% (37% above median its 10-year median of 2.28)
GF Value™: 円510.45 vs. price of 円426.00 (16.5% below fair value)
Industry Position: 17.6% below the Hardware median (#1645 of 2479)
No single metric tells the full story. See the TSE:6867 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leader Electronics Corp is engaged in the research, development, manufacturing, and sales of electronic measuring instruments, including those for broadcasting stations, manufacturers of professional video-related equipment, and signal monitoring during live broadcasts of sporting events.
61GF Score
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