Umenohana Group Co (TSE:7604) 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.
Umenohana Group Co Operating Margin % Related Terms
Umenohana Group Co Operating Margin % Historical Data
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The historical data trend for Umenohana Group 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:7604 vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Umenohana Group 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.
Umenohana Group Co Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Umenohana Group Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Umenohana Group 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.
Umenohana Group Co's Operating Margin % for the fiscal year that ended in Apr. 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.
Umenohana Group Co (TSE:7604) has a Operating Margin % of -53.70% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Umenohana Group Co and its competitors. According to the industry distribution chart, Umenohana Group Co ranks #236 out of 360 companies in the Restaurants industry, placing it in the top 65.6%.
Is Umenohana Group Co's Operating Margin % too high?
Umenohana Group Co's current Operating Margin % is -53.70%. Based on the distribution chart, Umenohana Group Co ranks #236 out of 360 companies in the Restaurants industry, which is below the industry midpoint. Overall, Umenohana Group Co has a GF Score™ of 53/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Umenohana Group Co's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Umenohana Group Co ranks #236 out of 360 companies for Operating Margin %. This places Umenohana Group Co in the lower half of its industry. The industry median Operating Margin % is 4.40. 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.40, based on 360 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 Umenohana Group Co and its competitors. For the Restaurants industry, the median Operating Margin % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Umenohana Group Co's current Operating Margin % is -53.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Umenohana Group Co stock overvalued right now?
Based on GuruFocus' analysis, Umenohana Group Co (TSE:7604) is currently considered Fairly Valued. The stock's GF Value™ is 円852.19, compared to a current price of 円894.00 — trading 4.9% above its estimated fair value. The current Operating Margin % is -53.70%. Umenohana Group Co's overall GF Score™ is 53/100 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 Umenohana Group Co (TSE:7604), the current Operating Margin % is -53.70% as of Apr. 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 Umenohana Group Co (TSE:7604) Overvalued in 2026?
Based on GuruFocus' analysis, Umenohana Group Co stock appears to be overvalued.
The current stock price of 円894.00 is trading 4.9% above its estimated GF Value™ of 円852.19.
GuruFocus considers Umenohana Group Co to be Fairly Valued.
Key valuation signals for TSE:7604:
Operating Margin %: -53.70%
GF Value™: 円852.19 vs. price of 円894.00 (4.9% above fair value)
No single metric tells the full story. See the TSE:7604 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Umenohana Group Co Ltd formerly, Umenohana Co Ltd owns and operates restaurants in Japan. The company operates a tofu restaurant chain. It offers dishes using tofu and yuba; China Unenohana, a Chinese restaurant; and Kanishige, a crab restaurant. It offers bean curd skin and bean curd course dishes, drinks, crab course dishes, Chinese course dishes and Chinese delicatessens. The company provides sushi, rice, Shao-Mai, fried bean curd skin and wheat gluten.
53GF Score
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