Tanaka Seimitsu Kogyo CoTSE:7218 +9.72%77 Operating Margin % is 4.72% as of Mar. 2026, which is 9% below its 10-year median of 5.17. GuruFocus rates TSE:7218 with a GF Score™ of 77/100 and a GF Value™ of 円1,098.82 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Tanaka Seimitsu Kogyo Co ranks better than 54.04% on this metric.
Tanaka Seimitsu Kogyo Co (TSE:7218) 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.
Tanaka Seimitsu Kogyo Co Operating Margin % Related Terms
Tanaka Seimitsu Kogyo 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.
TSE:7218 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Tanaka Seimitsu Kogyo 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.
Tanaka Seimitsu Kogyo Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tanaka Seimitsu Kogyo Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tanaka Seimitsu Kogyo Co's Operating Margin % falls into.
Tanaka Seimitsu Kogyo 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.
Tanaka Seimitsu Kogyo Co's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Tanaka Seimitsu Kogyo Co (TSE:7218) has a Operating Margin % of 4.72% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tanaka Seimitsu Kogyo Co and its competitors. This is near median its historical median of 5.17. According to the industry distribution chart, Tanaka Seimitsu Kogyo Co ranks #609 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 46%.
Is Tanaka Seimitsu Kogyo Co's Operating Margin % too high?
Tanaka Seimitsu Kogyo Co's current Operating Margin % of 4.72% is near median its 10-year median of 5.17. The Vehicles & Parts industry median Operating Margin % is 4.86. Tanaka Seimitsu Kogyo Co's value of 4.72% is 2.9% below this industry median. Based on the distribution chart, Tanaka Seimitsu Kogyo Co ranks #609 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Tanaka Seimitsu Kogyo Co has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tanaka Seimitsu Kogyo Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Tanaka Seimitsu Kogyo Co ranks #609 out of 1325 companies for Operating Margin %. This puts Tanaka Seimitsu Kogyo Co in the upper half of its industry. The industry median Operating Margin % is 4.86. Tanaka Seimitsu Kogyo Co's value of 4.72% is 2.9% below this benchmark. While the company's 10-year median is 5.17 vs. the industry median of 4.86, Tanaka Seimitsu Kogyo 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. Tanaka Seimitsu Kogyo Co's current Operating Margin % of 4.72% is 2.9% 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 Tanaka Seimitsu Kogyo 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. Tanaka Seimitsu Kogyo Co's current Operating Margin % is 4.72%, which is near median its own 10-year median of 5.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tanaka Seimitsu Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Tanaka Seimitsu Kogyo Co (TSE:7218) is currently considered Fairly Valued. The stock's GF Value™ is 円1,098.82, compared to a current price of 円1,118.00 — trading 1.7% above its estimated fair value. The current Operating Margin % is 4.72%, which is near median its 10-year median of 5.17 and 2.9% below the Vehicles & Parts industry median of 4.86. Tanaka Seimitsu Kogyo Co's overall GF Score™ is 77/100 with 2 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 Tanaka Seimitsu Kogyo Co (TSE:7218), the current Operating Margin % is 4.72% 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 Tanaka Seimitsu Kogyo Co (TSE:7218) Overvalued in 2026?
Based on GuruFocus' analysis, Tanaka Seimitsu Kogyo Co stock appears to be overvalued.
The current stock price of 円1,118.00 is trading 1.7% above its estimated GF Value™ of 円1,098.82.
GuruFocus considers Tanaka Seimitsu Kogyo Co to be Fairly Valued.
Key valuation signals for TSE:7218:
Operating Margin %: 4.72% (near median its 10-year median of 5.17)
GF Value™: 円1,098.82 vs. price of 円1,118.00 (1.7% above fair value)
Industry Position: 2.9% below the Vehicles & Parts median (#609 of 1325)
No single metric tells the full story. See the TSE:7218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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