Obara GroupTSE:6877 +0.16%81 Operating Margin % is 16.87% as of Mar. 2026, which is 2% above its 10-year median of 16.62. GuruFocus rates TSE:6877 with a GF Score™ of 81/100 and a GF Value™ of 円5,095.33 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 3,038 Industrial Products companies, Obara Group ranks better than 86.34% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Obara Group's Operating Income for the
three
months ended in Mar. 2026 was 円2,975 Mil. Obara Group's Revenue for the
three
months ended in Mar. 2026 was 円17,638 Mil. Therefore, Obara Group's Operating Margin % for the quarter that ended in Mar. 2026 was 16.87%.
Good Sign:
Obara Group Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Obara Group's Operating Margin % or its related term are showing as below:
TSE:6877'
s Operating Margin % Range Over the Past 10 Years
Min: 15.27 Med: 16.62 Max: 19.44
Current: 16.71
TSE:6877's Operating Margin % is ranked better than 86.34% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs TSE:6877: 16.71
Obara Group's 5-Year Average Operating Margin % Growth Rate was 0.40% per year.
Obara Group's Operating Income for the
three
months ended in Mar. 2026 was 円2,975 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円11,623 Mil.
Obara Group (TSE:6877) 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.
Obara Group Operating Margin % Related Terms
Obara Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Obara Group'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:6877 vs SNA, RBC, LECO: Operating Margin % Comparison
For the Tools & Accessories subindustry, Obara Group'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.
Obara Group Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Obara Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Obara Group'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.
Obara Group's Operating Margin % for the fiscal year that ended in Sep. 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.
Obara Group (TSE:6877) has a Operating Margin % of 16.87% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Obara Group and its competitors. This is near median its historical median of 16.62. Over the past decade, Obara Group's Operating Margin % has ranged from 15.27 to 19.44. According to the industry distribution chart, Obara Group ranks #415 out of 3038 companies in the Industrial Products industry, placing it in the top 13.7%.
Is Obara Group's Operating Margin % too high?
Obara Group's current Operating Margin % of 16.87% is near median its 10-year median of 16.62. Over the past 10 years, this metric has ranged from a low of 15.27 to a high of 19.44. The Industrial Products industry median Operating Margin % is 6.53. Obara Group's value of 16.87% is 158.3% above this industry median. Based on the distribution chart, Obara Group ranks #415 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Obara Group has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Obara Group's Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Obara Group ranks #415 out of 3038 companies for Operating Margin %. This places Obara Group in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Obara Group's value of 16.87% is 158.3% above this benchmark. Historically, Obara Group's own Operating Margin % has ranged from 15.27 to 19.44 over the past decade. While the company's 10-year median is 16.62 vs. the industry median of 6.53, Obara Group 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Obara Group's current Operating Margin % of 16.87% is 158.3% 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 Obara Group and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Obara Group's current Operating Margin % is 16.87%, which is near median its own 10-year median of 16.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Obara Group stock overvalued right now?
Based on GuruFocus' analysis, Obara Group (TSE:6877) is currently considered Modestly Overvalued. The stock's GF Value™ is 円5,095.33, compared to a current price of 円6,100.00 — trading 19.7% above its estimated fair value. The current Operating Margin % is 16.87%, which is near median its 10-year median of 16.62 and 158.3% above the Industrial Products industry median of 6.53. Obara Group's overall GF Score™ is 81/100 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 Obara Group (TSE:6877), the current Operating Margin % is 16.87% 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 Obara Group (TSE:6877) Overvalued in 2026?
Based on GuruFocus' analysis, Obara Group stock appears to be overvalued.
The current stock price of 円6,100.00 is trading 19.7% above its estimated GF Value™ of 円5,095.33.
GuruFocus considers Obara Group to be Modestly Overvalued.
Key valuation signals for TSE:6877:
Operating Margin %: 16.87% (near median its 10-year median of 16.62)
GF Value™: 円5,095.33 vs. price of 円6,100.00 (19.7% above fair value)
Industry Position: 158.3% above the Industrial Products median (#415 of 3038)
No single metric tells the full story. See the TSE:6877 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Obara Group Inc is a Japanese supplier of welding and polishing solutions. The company offers resistance welding systems for the automotive industry and arc welding tools for the shipbuilding and construction industries. The polishing business sells polishing machines under the SpeedFam brand primarily to electronic and precision industries, including the treatment of silicon wafers, mobile phones and personal computer electronics, flat panels, memory disks, and opto-electronic parts.
81GF Score
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