Nippon Ceramic CoTSE:6929 +1.88%94 Operating Margin % is 24.32% as of Mar. 2026, which is 39% above its 10-year median of 17.55. GuruFocus rates TSE:6929 with a GF Score™ of 94/100 and a GF Value™ of 円3,318.59 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, Nippon Ceramic Co ranks better than 94.22% on this metric.
Nippon Ceramic Co (TSE:6929) 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.
Nippon Ceramic Co Operating Margin % Related Terms
Nippon Ceramic Co Operating Margin % Historical Data
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The historical data trend for Nippon Ceramic 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.
TSE:6929 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Nippon Ceramic 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.
Nippon Ceramic Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Nippon Ceramic Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Ceramic 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.
Nippon Ceramic Co's Operating Margin % for the fiscal year that ended in Dec. 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.
Nippon Ceramic Co (TSE:6929) has a Operating Margin % of 24.32% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Ceramic Co and its competitors. This is 39% above median its historical median of 17.55. Over the past decade, Nippon Ceramic Co's Operating Margin % has ranged from 14.06 to 23.18. According to the industry distribution chart, Nippon Ceramic Co ranks #143 out of 2472 companies in the Hardware industry, placing it in the top 5.8%.
Is Nippon Ceramic Co's Operating Margin % too high?
Nippon Ceramic Co's current Operating Margin % of 24.32% is 39% above median its 10-year median of 17.55. Over the past 10 years, this metric has ranged from a low of 14.06 to a high of 23.18. The Hardware industry median Operating Margin % is 3.81. Nippon Ceramic Co's value of 24.32% is 538.3% above this industry median. Based on the distribution chart, Nippon Ceramic Co ranks #143 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Ceramic Co has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Ceramic Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Nippon Ceramic Co ranks #143 out of 2472 companies for Operating Margin %. This places Nippon Ceramic Co in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. Nippon Ceramic Co's value of 24.32% is 538.3% above this benchmark. Historically, Nippon Ceramic Co's own Operating Margin % has ranged from 14.06 to 23.18 over the past decade. While the company's 10-year median is 17.55 vs. the industry median of 3.81, Nippon Ceramic Co 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 3.81, based on 2,472 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. Nippon Ceramic Co's current Operating Margin % of 24.32% is 538.3% 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 Nippon Ceramic Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Ceramic Co's current Operating Margin % is 24.32%, which is 39% above median its own 10-year median of 17.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Ceramic Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Ceramic Co (TSE:6929) is currently considered Modestly Overvalued. The stock's GF Value™ is 円3,318.59, compared to a current price of 円3,785.00 — trading 14.1% above its estimated fair value. The current Operating Margin % is 24.32%, which is 39% above median its 10-year median of 17.55 and 538.3% above the Hardware industry median of 3.81. Nippon Ceramic Co's overall GF Score™ is 94/100 with 4 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 Nippon Ceramic Co (TSE:6929), the current Operating Margin % is 24.32% 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 Nippon Ceramic Co (TSE:6929) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Ceramic Co stock appears to be overvalued.
The current stock price of 円3,785.00 is trading 14.1% above its estimated GF Value™ of 円3,318.59.
GuruFocus considers Nippon Ceramic Co to be Modestly Overvalued.
Key valuation signals for TSE:6929:
Operating Margin %: 24.32% (39% above median its 10-year median of 17.55)
GF Value™: 円3,318.59 vs. price of 円3,785.00 (14.1% above fair value)
Industry Position: 538.3% above the Hardware median (#143 of 2472)
No single metric tells the full story. See the TSE:6929 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Ceramic Co Ltd is a Japan based company engaged in development, manufacturing and sale of ceramic sensors, ferrite, module and others. Its products are applicable for household equipment and plant facilities; automobiles; home electronics and office automation equipment; and electronics. Its Household equipment & plant faculties include lighting, sensor, security system, fire detection sensor etc. In automobile industry its products are applicable in sensor, DC- DC Converter, charging & discharging battery etc. Its products in home electronics include Microwave, airconditioner and IH cooker. Under electronics industry its products are power supplies, fan motors, inverters.
94GF Score
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