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Nishimatsuya Chain Co (TSE:7545) 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.
Nishimatsuya Chain Co Operating Margin % Related Terms
Nishimatsuya Chain Co Operating Margin % Historical Data
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The historical data trend for Nishimatsuya Chain 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:7545 vs CASY, WSM, DKS: Operating Margin % Comparison
For the Specialty Retail subindustry, Nishimatsuya Chain 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.
Nishimatsuya Chain Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Nishimatsuya Chain Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nishimatsuya Chain Co's Operating Margin % falls into.
Nishimatsuya Chain 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.
Nishimatsuya Chain Co's Operating Margin % for the fiscal year that ended in Feb. 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.
Nishimatsuya Chain Co (TSE:7545) has a Operating Margin % of -0.79% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nishimatsuya Chain Co and its competitors. Over the past decade, Nishimatsuya Chain Co's Operating Margin % has ranged from 1.34 to 7.59. According to the industry distribution chart, Nishimatsuya Chain Co ranks #481 out of 1125 companies in the Retail - Cyclical industry, placing it in the top 42.8%.
Is Nishimatsuya Chain Co's Operating Margin % too high?
Nishimatsuya Chain Co's current Operating Margin % is -0.79%. Over the past 10 years, this metric has ranged from a low of 1.34 to a high of 7.59. Based on the distribution chart, Nishimatsuya Chain Co ranks #481 out of 1125 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Nishimatsuya Chain Co has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nishimatsuya Chain Co's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Nishimatsuya Chain Co ranks #481 out of 1125 companies for Operating Margin %. This puts Nishimatsuya Chain Co in the upper half of its industry. The industry median Operating Margin % is 3.89. Historically, Nishimatsuya Chain Co's own Operating Margin % has ranged from 1.34 to 7.59 over the past decade. 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.89, based on 1,125 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. 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 Nishimatsuya Chain Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nishimatsuya Chain Co's current Operating Margin % is -0.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nishimatsuya Chain Co stock overvalued right now?
Based on GuruFocus' analysis, Nishimatsuya Chain Co (TSE:7545) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,328.72, compared to a current price of 円2,019.00 — trading 13.3% below its estimated fair value. The current Operating Margin % is -0.79%. Nishimatsuya Chain Co's overall GF Score™ is 71/100 with 4 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 Nishimatsuya Chain Co (TSE:7545), the current Operating Margin % is -0.79% as of Feb. 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 Nishimatsuya Chain Co (TSE:7545) Overvalued in 2026?
Based on GuruFocus' analysis, Nishimatsuya Chain Co stock appears to be undervalued.
The current stock price of 円2,019.00 is trading 13.3% below its estimated GF Value™ of 円2,328.72.
GuruFocus considers Nishimatsuya Chain Co to be Modestly Undervalued.
Key valuation signals for TSE:7545:
Operating Margin %: -0.79%
GF Value™: 円2,328.72 vs. price of 円2,019.00 (13.3% below fair value)
No single metric tells the full story. See the TSE:7545 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nishimatsuya Chain Co Ltd is a Japanese retailer that sells clothing and other goods for children and babies. The company also manufactures items for its private-label brand. Apparel includes outerwear, underwear, pajamas, hats, shoes, and maternity clothing. Other products include hygiene products, toys, strollers, high chairs, and bedroom items. Nishimatsuya has nearly 1,000 stores throughout Japan, in Kanto, Chubu, Kinki, Tohoku, Kyushu, Hokkaido, Hokuriku, and Chugoku. The company also has a substantial e-commerce business.
71GF Score
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