GMO Financial HoldingsTSE:7177 -1.20%71 Operating Margin % is 19.59% as of Dec. 2025, which is 40% below its 10-year median of 32.79. GuruFocus rates TSE:7177 with a GF Score™ of 71/100 and a GF Value™ of 円699.08 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 664 Capital Markets companies, GMO Financial Holdings ranks better than 72.89% on this metric.
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.
GMO Financial Holdings Operating Margin % Related Terms
GMO Financial Holdings Operating Margin % Historical Data
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The historical data trend for GMO Financial Holdings'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:7177 vs MS, GS, SCHW: Operating Margin % Comparison
For the Capital Markets subindustry, GMO Financial Holdings'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.
GMO Financial Holdings Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, GMO Financial Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where GMO Financial Holdings'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.
GMO Financial Holdings'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.
GMO Financial Holdings (TSE:7177) has a Operating Margin % of 19.59% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on GMO Financial Holdings and its competitors. This is 40% below median its historical median of 32.79. Over the past decade, GMO Financial Holdings' Operating Margin % has ranged from 16.76 to 36.58. According to the industry distribution chart, GMO Financial Holdings ranks #180 out of 664 companies in the Capital Markets industry, placing it in the top 27.1%.
Is GMO Financial Holdings' Operating Margin % too high?
GMO Financial Holdings' current Operating Margin % of 19.59% is 40% below median its 10-year median of 32.79. Over the past 10 years, this metric has ranged from a low of 16.76 to a high of 36.58. The Capital Markets industry median Operating Margin % is 6.96. GMO Financial Holdings' value of 19.59% is 181.7% above this industry median. Based on the distribution chart, GMO Financial Holdings ranks #180 out of 664 companies in the Capital Markets industry, which is above the industry midpoint. Overall, GMO Financial Holdings has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GMO Financial Holdings' Operating Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, GMO Financial Holdings ranks #180 out of 664 companies for Operating Margin %. This puts GMO Financial Holdings in the upper half of its industry. The industry median Operating Margin % is 6.96. GMO Financial Holdings' value of 19.59% is 181.7% above this benchmark. Historically, GMO Financial Holdings' own Operating Margin % has ranged from 16.76 to 36.58 over the past decade. While the company's 10-year median is 32.79 vs. the industry median of 6.96, GMO Financial Holdings 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 Capital Markets company?
The median Operating Margin % among Capital Markets companies is 6.96, based on 664 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. GMO Financial Holdings's current Operating Margin % of 19.59% is 181.7% 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 GMO Financial Holdings and its competitors. For the Capital Markets industry, the median Operating Margin % is 6.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMO Financial Holdings's current Operating Margin % is 19.59%, which is 40% below median its own 10-year median of 32.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, GMO Financial Holdings (TSE:7177) is currently considered Significantly Overvalued. The stock's GF Value™ is 円699.08, compared to a current price of 円987.00 — trading 41.2% above its estimated fair value. The current Operating Margin % is 19.59%, which is 40% below median its 10-year median of 32.79 and 181.7% above the Capital Markets industry median of 6.96. GMO Financial Holdings' overall GF Score™ is 71/100 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 GMO Financial Holdings (TSE:7177), the current Operating Margin % is 19.59% 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.
Is GMO Financial Holdings (TSE:7177) Overvalued in 2026?
Based on GuruFocus' analysis, GMO Financial Holdings stock appears to be overvalued.
The current stock price of 円987.00 is trading 41.2% above its estimated GF Value™ of 円699.08.
GuruFocus considers GMO Financial Holdings to be Significantly Overvalued.
Key valuation signals for TSE:7177:
Operating Margin %: 19.59% (40% below median its 10-year median of 32.79)
GF Value™: 円699.08 vs. price of 円987.00 (41.2% above fair value)
Industry Position: 181.7% above the Capital Markets median (#180 of 664)
No single metric tells the full story. See the TSE:7177 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GMO Financial Holdings Inc is a Japan-based holding company that is principally engaged in providing financial product trading services in Japan and overseas markets and operates under two segments-securities and FX business and Cryptocurrency business. The company operates through various subsidiaries, such as GMO Click Securities and FX Prime from GMO Corp. in Japan; and GMO-Z.com Forex HK Limited, GMO-Z.com Bullion HK Limited, and GMO-Z.com Trade UK Limited in Hong Kong and the United Kingdom. Through the above subsidiaries, the company is involved in activities including foreign exchange trading, bullion trading, CFD trading, and others.
71GF Score
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