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Hokuriku Electric Industry CoTSE:6989 -4.55%74 Operating Margin % is 3.41% as of Mar. 2026, which is 16% below its 10-year median of 4.06. GuruFocus rates TSE:6989 with a GF Score™ of 74/100 and a GF Value™ of 円1,575.05 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,475 Hardware companies, Hokuriku Electric Industry Co ranks better than 58.22% on this metric.
Hokuriku Electric Industry Co (TSE:6989) 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.
Hokuriku Electric Industry Co Operating Margin % Related Terms
Hokuriku Electric Industry Co Operating Margin % Historical Data
* 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.
Hokuriku Electric Industry Co Operating Margin % Chart
TSE:6989 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Hokuriku Electric Industry 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.
Hokuriku Electric Industry Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hokuriku Electric Industry Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hokuriku Electric Industry Co's Operating Margin % falls into.
Hokuriku Electric Industry 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.
* 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.
Hokuriku Electric Industry Co (TSE:6989) has a Operating Margin % of 3.41% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hokuriku Electric Industry Co and its competitors. This is 16% below median its historical median of 4.06. Over the past decade, Hokuriku Electric Industry Co's Operating Margin % has ranged from 0.81 to 6.47. According to the industry distribution chart, Hokuriku Electric Industry Co ranks #1034 out of 2475 companies in the Hardware industry, placing it in the top 41.8%.
Is Hokuriku Electric Industry Co's Operating Margin % too high?
Hokuriku Electric Industry Co's current Operating Margin % of 3.41% is 16% below median its 10-year median of 4.06. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 6.47. The Hardware industry median Operating Margin % is 3.89. Hokuriku Electric Industry Co's value of 3.41% is 12.3% below this industry median. Based on the distribution chart, Hokuriku Electric Industry Co ranks #1034 out of 2475 companies in the Hardware industry, which is above the industry midpoint. Overall, Hokuriku Electric Industry Co has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hokuriku Electric Industry Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Hokuriku Electric Industry Co ranks #1034 out of 2475 companies for Operating Margin %. This puts Hokuriku Electric Industry Co in the upper half of its industry. The industry median Operating Margin % is 3.89. Hokuriku Electric Industry Co's value of 3.41% is 12.3% below this benchmark. Historically, Hokuriku Electric Industry Co's own Operating Margin % has ranged from 0.81 to 6.47 over the past decade. While the company's 10-year median is 4.06 vs. the industry median of 3.89, Hokuriku Electric Industry Co has consistently been below 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 3.89, based on 2,475 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. Hokuriku Electric Industry Co's current Operating Margin % of 3.41% is 12.3% below 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 Hokuriku Electric Industry Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hokuriku Electric Industry Co's current Operating Margin % is 3.41%, which is 16% below median its own 10-year median of 4.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hokuriku Electric Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Hokuriku Electric Industry Co (TSE:6989) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,575.05, compared to a current price of 円2,310.00 — trading 46.7% above its estimated fair value. The current Operating Margin % is 3.41%, which is 16% below median its 10-year median of 4.06 and 12.3% below the Hardware industry median of 3.89. Hokuriku Electric Industry Co's overall GF Score™ is 74/100 with 1 warning sign 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 Hokuriku Electric Industry Co (TSE:6989), the current Operating Margin % is 3.41% 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 Hokuriku Electric Industry Co (TSE:6989) Overvalued in 2026?
Based on GuruFocus' analysis, Hokuriku Electric Industry Co stock appears to be overvalued.
The current stock price of 円2,310.00 is trading 46.7% above its estimated GF Value™ of 円1,575.05.
GuruFocus considers Hokuriku Electric Industry Co to be Significantly Overvalued.
Key valuation signals for TSE:6989:
Operating Margin %: 3.41% (16% below median its 10-year median of 4.06)
GF Value™: 円1,575.05 vs. price of 円2,310.00 (46.7% above fair value)
Industry Position: 12.3% below the Hardware median (#1034 of 2475)
No single metric tells the full story. See the TSE:6989 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hokuriku Electric Industry Co Ltd operates in development, manufacturing and sales of electronic components such as Resistors, Sensors, Modules Printed Circuit Boards, Piezoelectric Buzzers, Tactile Switches, Thermistors and Varistors.
74GF Score
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