Tokyo Radiator Mfg CoTSE:7235 +0.20%78 Operating Margin % is 6.13% as of Mar. 2026, which is 37% above its 10-year median of 4.48. GuruFocus rates TSE:7235 with a GF Score™ of 78/100 and a GF Value™ of 円953.22 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,320 Vehicles & Parts companies, Tokyo Radiator Mfg Co ranks better than 61.89% on this metric.
Tokyo Radiator Mfg Co (TSE:7235) 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.
Tokyo Radiator Mfg Co Operating Margin % Related Terms
Tokyo Radiator Mfg Co Operating Margin % Historical Data
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The historical data trend for Tokyo Radiator Mfg 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:7235 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Tokyo Radiator Mfg 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.
Tokyo Radiator Mfg Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tokyo Radiator Mfg Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tokyo Radiator Mfg Co's Operating Margin % falls into.
Tokyo Radiator Mfg 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.
Tokyo Radiator Mfg 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.
Tokyo Radiator Mfg Co (TSE:7235) has a Operating Margin % of 6.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tokyo Radiator Mfg Co and its competitors. This is 37% above median its historical median of 4.48. According to the industry distribution chart, Tokyo Radiator Mfg Co ranks #503 out of 1320 companies in the Vehicles & Parts industry, placing it in the top 38.1%.
Is Tokyo Radiator Mfg Co's Operating Margin % too high?
Tokyo Radiator Mfg Co's current Operating Margin % of 6.13% is 37% above median its 10-year median of 4.48. The Vehicles & Parts industry median Operating Margin % is 4.89. Tokyo Radiator Mfg Co's value of 6.13% is 25.4% above this industry median. Based on the distribution chart, Tokyo Radiator Mfg Co ranks #503 out of 1320 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Tokyo Radiator Mfg Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokyo Radiator Mfg Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Tokyo Radiator Mfg Co ranks #503 out of 1320 companies for Operating Margin %. This puts Tokyo Radiator Mfg Co in the upper half of its industry. The industry median Operating Margin % is 4.89. Tokyo Radiator Mfg Co's value of 6.13% is 25.4% above this benchmark. While the company's 10-year median is 4.48 vs. the industry median of 4.89, Tokyo Radiator Mfg 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.89, based on 1,320 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. Tokyo Radiator Mfg Co's current Operating Margin % of 6.13% is 25.4% 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 Tokyo Radiator Mfg Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokyo Radiator Mfg Co's current Operating Margin % is 6.13%, which is 37% above median its own 10-year median of 4.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Radiator Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Tokyo Radiator Mfg Co (TSE:7235) is currently considered Significantly Overvalued. The stock's GF Value™ is 円953.22, compared to a current price of 円1,516.00 — trading 59% above its estimated fair value. The current Operating Margin % is 6.13%, which is 37% above median its 10-year median of 4.48 and 25.4% above the Vehicles & Parts industry median of 4.89. Tokyo Radiator Mfg Co's overall GF Score™ is 78/100 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 Tokyo Radiator Mfg Co (TSE:7235), the current Operating Margin % is 6.13% 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 Tokyo Radiator Mfg Co (TSE:7235) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Radiator Mfg Co stock appears to be overvalued.
The current stock price of 円1,516.00 is trading 59% above its estimated GF Value™ of 円953.22.
GuruFocus considers Tokyo Radiator Mfg Co to be Significantly Overvalued.
Key valuation signals for TSE:7235:
Operating Margin %: 6.13% (37% above median its 10-year median of 4.48)
GF Value™: 円953.22 vs. price of 円1,516.00 (59% above fair value)
Industry Position: 25.4% above the Vehicles & Parts median (#503 of 1320)
No single metric tells the full story. See the TSE:7235 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Radiator Mfg Co Ltd manufactures and sells heat exchangers and body components in Japan. Its products include parts for heat exchangers, such as radiators, exhaust gas recirculation (EGR) coolers, oil coolers, and fuel coolers, among others; as well as automobile body components, such as oil pans, vacuum tanks, fuel tanks, and selective catalytic reduction (SCR) tanks.
78GF Score
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