Kyoritsu ElectricTSE:6874 -1.27%77 Operating Margin % is 8.82% as of Dec. 2025, which is 53% above its 10-year median of 5.77. GuruFocus rates TSE:6874 with a GF Score™ of 77/100 and a GF Value™ of 円1,859.16 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,471 Hardware companies, Kyoritsu Electric ranks better than 72.08% on this metric.
Kyoritsu Electric (TSE:6874) 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.
Kyoritsu Electric Operating Margin % Related Terms
Kyoritsu Electric Operating Margin % Historical Data
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The historical data trend for Kyoritsu Electric'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:6874 vs COHR, KEYS, GRMN: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Kyoritsu Electric'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.
Kyoritsu Electric Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Kyoritsu Electric's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kyoritsu Electric'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.
Kyoritsu Electric's Operating Margin % for the fiscal year that ended in Jun. 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.
Kyoritsu Electric (TSE:6874) has a Operating Margin % of 8.82% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kyoritsu Electric and its competitors. This is 53% above median its historical median of 5.77. Over the past decade, Kyoritsu Electric's Operating Margin % has ranged from 3.85 to 8.92. According to the industry distribution chart, Kyoritsu Electric ranks #690 out of 2471 companies in the Hardware industry, placing it in the top 27.9%.
Is Kyoritsu Electric's Operating Margin % too high?
Kyoritsu Electric's current Operating Margin % of 8.82% is 53% above median its 10-year median of 5.77. Over the past 10 years, this metric has ranged from a low of 3.85 to a high of 8.92. The Hardware industry median Operating Margin % is 3.80. Kyoritsu Electric's value of 8.82% is 132.1% above this industry median. Based on the distribution chart, Kyoritsu Electric ranks #690 out of 2471 companies in the Hardware industry, which is above the industry midpoint. Overall, Kyoritsu Electric has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kyoritsu Electric's Operating Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Kyoritsu Electric ranks #690 out of 2471 companies for Operating Margin %. This puts Kyoritsu Electric in the upper half of its industry. The industry median Operating Margin % is 3.80. Kyoritsu Electric's value of 8.82% is 132.1% above this benchmark. Historically, Kyoritsu Electric's own Operating Margin % has ranged from 3.85 to 8.92 over the past decade. While the company's 10-year median is 5.77 vs. the industry median of 3.80, Kyoritsu Electric 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 2,471 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. Kyoritsu Electric's current Operating Margin % of 8.82% is 132.1% 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 Kyoritsu Electric 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. Kyoritsu Electric's current Operating Margin % is 8.82%, which is 53% above median its own 10-year median of 5.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kyoritsu Electric stock overvalued right now?
Based on GuruFocus' analysis, Kyoritsu Electric (TSE:6874) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,859.16, compared to a current price of 円2,641.00 — trading 42.1% above its estimated fair value. The current Operating Margin % is 8.82%, which is 53% above median its 10-year median of 5.77 and 132.1% above the Hardware industry median of 3.80. Kyoritsu Electric's overall GF Score™ is 77/100 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 Kyoritsu Electric (TSE:6874), the current Operating Margin % is 8.82% 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 Kyoritsu Electric (TSE:6874) Overvalued in 2026?
Based on GuruFocus' analysis, Kyoritsu Electric stock appears to be overvalued.
The current stock price of 円2,641.00 is trading 42.1% above its estimated GF Value™ of 円1,859.16.
GuruFocus considers Kyoritsu Electric to be Significantly Overvalued.
Key valuation signals for TSE:6874:
Operating Margin %: 8.82% (53% above median its 10-year median of 5.77)
GF Value™: 円1,859.16 vs. price of 円2,641.00 (42.1% above fair value)
Industry Position: 132.1% above the Hardware median (#690 of 2471)
No single metric tells the full story. See the TSE:6874 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kyoritsu Electric Corp is an engineering solution provider. It provides various systems and testing and measuring instruments. It provides factory automation products such as integrated production control systems, network-based control systems & flows, pressure and temperature sensors. Its civil automation includes a shield machine management system, tunnel boring machine management system.
77GF Score
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