Daido Metal CoTSE:7245 +8.41%59 Operating Margin % is 6.50% as of Mar. 2026, which is 29% above its 10-year median of 5.03. GuruFocus rates TSE:7245 with a GF Score™ of 59/100 and a GF Value™ of 円652.71 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Daido Metal Co ranks better than 58.11% on this metric.
Daido Metal Co (TSE:7245) 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.
Daido Metal Co Operating Margin % Related Terms
Daido Metal Co Operating Margin % Historical Data
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The historical data trend for Daido Metal 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:7245 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Daido Metal 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.
Daido Metal Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daido Metal Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Daido Metal 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.
Daido Metal 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.
Daido Metal Co (TSE:7245) has a Operating Margin % of 6.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Daido Metal Co and its competitors. This is 29% above median its historical median of 5.03. Over the past decade, Daido Metal Co's Operating Margin % has ranged from 1.56 to 6.75. According to the industry distribution chart, Daido Metal Co ranks #555 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 41.9%.
Is Daido Metal Co's Operating Margin % too high?
Daido Metal Co's current Operating Margin % of 6.50% is 29% above median its 10-year median of 5.03. Over the past 10 years, this metric has ranged from a low of 1.56 to a high of 6.75. The Vehicles & Parts industry median Operating Margin % is 4.86. Daido Metal Co's value of 6.50% is 33.7% above this industry median. Based on the distribution chart, Daido Metal Co ranks #555 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Daido Metal Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Metal Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Daido Metal Co ranks #555 out of 1325 companies for Operating Margin %. This puts Daido Metal Co in the upper half of its industry. The industry median Operating Margin % is 4.86. Daido Metal Co's value of 6.50% is 33.7% above this benchmark. Historically, Daido Metal Co's own Operating Margin % has ranged from 1.56 to 6.75 over the past decade. While the company's 10-year median is 5.03 vs. the industry median of 4.86, Daido Metal 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 4.86, 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. Daido Metal Co's current Operating Margin % of 6.50% is 33.7% 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 Daido Metal 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. Daido Metal Co's current Operating Margin % is 6.50%, which is 29% above median its own 10-year median of 5.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Metal Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Metal Co (TSE:7245) is currently considered Significantly Overvalued. The stock's GF Value™ is 円652.71, compared to a current price of 円1,675.00 — trading 156.6% above its estimated fair value. The current Operating Margin % is 6.50%, which is 29% above median its 10-year median of 5.03 and 33.7% above the Vehicles & Parts industry median of 4.86. Daido Metal Co's overall GF Score™ is 59/100 with 9 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 Daido Metal Co (TSE:7245), the current Operating Margin % is 6.50% 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 Daido Metal Co (TSE:7245) Overvalued in 2026?
Based on GuruFocus' analysis, Daido Metal Co stock appears to be overvalued.
The current stock price of 円1,675.00 is trading 156.6% above its estimated GF Value™ of 円652.71.
GuruFocus considers Daido Metal Co to be Significantly Overvalued.
Key valuation signals for TSE:7245:
Operating Margin %: 6.50% (29% above median its 10-year median of 5.03)
GF Value™: 円652.71 vs. price of 円1,675.00 (156.6% above fair value)
Industry Position: 33.7% above the Vehicles & Parts median (#555 of 1325)
No single metric tells the full story. See the TSE:7245 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daido Metal Co Ltd manufactures and sells a variety of bearings including automobile engine bearings and large ship engine bearings. The company has a production and sales network in the five-hub system of Japan, North America, Europe, Asia, and China. It manufactures bearings for trucks, construction and agricultural machinery, and bearings for automobile parts such as turbochargers and shock absorbers. Its products portfolio includes metal-polymer bearings, metallic bearings, engine bearing, turbomachinery bearing systems, modular products, pump, centralized lubrication, capacitors and semi-dry processing which are used in including automotive, marine, construction machinery, agricultural machines, industrial, energy, infrastructure and transportation, leisure, and household appliances.
59GF Score
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