Shibaura Electronics Co (TSE:6957) 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.
Shibaura Electronics Co Operating Margin % Related Terms
Shibaura Electronics Co Operating Margin % Historical Data
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The historical data trend for Shibaura Electronics 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:6957 vs GRMN, KEYS, COHR: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Shibaura Electronics 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.
Shibaura Electronics Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Shibaura Electronics Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shibaura Electronics Co's Operating Margin % falls into.
Shibaura Electronics Co Operating Margin % Calculation
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.
Shibaura Electronics Co's Operating Margin % for the fiscal year that ended in Mar. 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.
Shibaura Electronics Co (TSE:6957) has a Operating Margin % of 15.27% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Shibaura Electronics Co and its competitors. This is 25% above median its historical median of 12.25. Over the past decade, Shibaura Electronics Co's Operating Margin % has ranged from 8.76 to 18.22.
Is Shibaura Electronics Co's Operating Margin % too high?
Shibaura Electronics Co's current Operating Margin % of 15.27% is 25% above median its 10-year median of 12.25. Over the past 10 years, this metric has ranged from a low of 8.76 to a high of 18.22. The Hardware industry median Operating Margin % is 3.81. Shibaura Electronics Co's value of 15.27% is 300.8% above this industry median. Overall, Shibaura Electronics Co has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does Shibaura Electronics Co's Operating Margin % compare to GRMN and KEYS?
Shibaura Electronics Co's Operating Margin % of 15.27% can be compared against companies in the Hardware industry. The industry median Operating Margin % is 3.81. Shibaura Electronics Co's value of 15.27% is 300.8% above this benchmark. Historically, Shibaura Electronics Co's own Operating Margin % has ranged from 8.76 to 18.22 over the past decade. While the company's 10-year median is 12.25 vs. the industry median of 3.81, Shibaura Electronics 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. Shibaura Electronics Co's current Operating Margin % of 15.27% is 300.8% 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 Shibaura Electronics 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. Shibaura Electronics Co's current Operating Margin % is 15.27%, which is 25% above median its own 10-year median of 12.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shibaura Electronics Co stock overvalued right now?
Shibaura Electronics Co (TSE:6957) has a current Operating Margin % of 15.27%. The stock's GF Value™ is 円3,486.83, compared to a current price of 円7,090.00 — trading 103.3% above its estimated fair value. The current Operating Margin % is 15.27%, which is 25% above median its 10-year median of 12.25 and 300.8% above the Hardware industry median of 3.81. Shibaura Electronics Co's overall GF Score™ is 59/100 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 Shibaura Electronics Co (TSE:6957), the current Operating Margin % is 15.27% as of Sep. 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 Shibaura Electronics Co (TSE:6957) Overvalued in 2026?
Based on GuruFocus' analysis, Shibaura Electronics Co stock appears to be overvalued.
The current stock price of 円7,090.00 is trading 103.3% above its estimated GF Value™ of 円3,486.83.
Key valuation signals for TSE:6957:
Operating Margin %: 15.27% (25% above median its 10-year median of 12.25)
GF Value™: 円3,486.83 vs. price of 円7,090.00 (103.3% above fair value)
Industry Position: 300.8% above the Hardware median
No single metric tells the full story. See the TSE:6957 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shibaura Electronics Co Ltd deals in semiconductor components with thermistor technology at their core, as well as various products that apply these technologies. It manufactures and sells temperature sensors, humidity sensors, hygrometers, temperature controllers, temperature recorders, anemometers, and humidity measuring devices. The group's reportable segments are Japan, which derives maximum revenue, Asia, Europe, and America.
59GF 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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