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Tomita Electric Co (TSE:6898) 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.
Tomita Electric Co Operating Margin % Related Terms
Tomita Electric Co Operating Margin % Historical Data
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The historical data trend for Tomita Electric Co'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.
For the Consumer Electronics subindustry, Tomita Electric Co'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.
Tomita Electric Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Tomita Electric Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tomita Electric Co'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.
Tomita Electric Co's Operating Margin % for the fiscal year that ended in Jan. 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.
Tomita Electric Co (TSE:6898) has a Operating Margin % of -1.55% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tomita Electric Co and its competitors. According to the industry distribution chart, Tomita Electric Co ranks #1868 out of 2479 companies in the Hardware industry, placing it in the top 75.4%.
Is Tomita Electric Co's Operating Margin % too high?
Tomita Electric Co's current Operating Margin % is -1.55%. Based on the distribution chart, Tomita Electric Co ranks #1868 out of 2479 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Tomita Electric Co has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tomita Electric Co's Operating Margin % compare to AAPL?
According to the Hardware industry distribution chart, Tomita Electric Co ranks #1868 out of 2479 companies for Operating Margin %. This places Tomita Electric Co in the lower half of its industry. The industry median Operating Margin % is 3.80. 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. 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 Tomita Electric Co 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. Tomita Electric Co's current Operating Margin % is -1.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tomita Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Tomita Electric Co (TSE:6898) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,688.91, compared to a current price of 円3,705.00 — trading 119.4% above its estimated fair value. The current Operating Margin % is -1.55%. Tomita Electric Co's overall GF Score™ is 38/100 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 Tomita Electric Co (TSE:6898), the current Operating Margin % is -1.55% as of Jan. 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 Tomita Electric Co (TSE:6898) Overvalued in 2026?
Based on GuruFocus' analysis, Tomita Electric Co stock appears to be overvalued.
The current stock price of 円3,705.00 is trading 119.4% above its estimated GF Value™ of 円1,688.91.
GuruFocus considers Tomita Electric Co to be Significantly Overvalued.
Key valuation signals for TSE:6898:
Operating Margin %: -1.55%
GF Value™: 円1,688.91 vs. price of 円3,705.00 (119.4% above fair value)
No single metric tells the full story. See the TSE:6898 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tomita Electric Co Ltd is a Japanese firm which manufactures and sells radio parts and ferrite cores. It provides soft ferrite and hard ferrite. It offers ferrite cores used in miniaturizing electronic equipment and in energy conservation; and coils and transformers used in personal computers, LAN and peripherals.
38GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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