Wellbin Group Co (TSE:7136) 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.
Wellbin Group Co Operating Margin % Related Terms
Wellbin Group Co Operating Margin % Historical Data
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The historical data trend for Wellbin Group 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 Auto & Truck Dealerships subindustry, Wellbin Group 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.
Wellbin Group Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Wellbin Group Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Wellbin Group 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.
Wellbin Group 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.
Wellbin Group Co (TSE:7136) has a Operating Margin % of 4.51% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Wellbin Group Co and its competitors. This is near median its historical median of 4.80. Over the past decade, Wellbin Group Co's Operating Margin % has ranged from 4.31 to 6.57.
Is Wellbin Group Co's Operating Margin % too high?
Wellbin Group Co's current Operating Margin % of 4.51% is near median its 10-year median of 4.80. Over the past 10 years, this metric has ranged from a low of 4.31 to a high of 6.57. The Vehicles & Parts industry median Operating Margin % is 4.86. Wellbin Group Co's value of 4.51% is 7.2% below this industry median. Overall, Wellbin Group Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Wellbin Group Co's Operating Margin % compare to ?
Wellbin Group Co's Operating Margin % of 4.51% can be compared against companies in the Vehicles & Parts industry. The industry median Operating Margin % is 4.86. Wellbin Group Co's value of 4.51% is 7.2% below this benchmark. Historically, Wellbin Group Co's own Operating Margin % has ranged from 4.31 to 6.57 over the past decade. While the company's 10-year median is 4.80 vs. the industry median of 4.86, Wellbin Group 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. Wellbin Group Co's current Operating Margin % of 4.51% is 7.2% 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 Wellbin Group Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wellbin Group Co's current Operating Margin % is 4.51%, which is near median its own 10-year median of 4.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wellbin Group Co stock overvalued right now?
Wellbin Group Co (TSE:7136) has a current Operating Margin % of 4.51%. The current Operating Margin % is 4.51%, which is near median its 10-year median of 4.80 and 7.2% below the Vehicles & Parts industry median of 4.86. Wellbin Group Co's overall GF Score™ is 16/100 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 Wellbin Group Co (TSE:7136), the current Operating Margin % is 4.51% as of Dec. 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.
Wellbin Group Co Ltd is engaged in the automobile sales and maintenance, and other businesses. The group is involved in automobile sales and maintenance, gas stations, insurance agencies, real estate, and other businesses. The majority of its revenue is generated from the automobile sales and maintenance business, which deals with light vehicles and sells new, unused, and used cars, and performs automobile inspections, maintenance, and body repairs. These services are offered through various branded stores such as Pa! Cars, Holiday Shaken, and Syaken no Hayataro. The group operates in a single segment, which is automobile sales and related businesses.
16GF Score
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