United ArrowsTSE:7606 -0.38%86 Operating Margin % is 0.89% as of Mar. 2026, which is 84% below its 10-year median of 5.42. GuruFocus rates TSE:7606 with a GF Score™ of 86/100 and a GF Value™ of 円2,486.06 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,128 Retail - Cyclical companies, United Arrows ranks better than 59.49% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. United Arrows's Operating Income for the
three
months ended in Mar. 2026 was 円363 Mil. United Arrows's Revenue for the
three
months ended in Mar. 2026 was 円40,965 Mil. Therefore, United Arrows's Operating Margin % for the quarter that ended in Mar. 2026 was 0.89%.
The historical rank and industry rank for United Arrows's Operating Margin % or its related term are showing as below:
TSE:7606'
s Operating Margin % Range Over the Past 10 Years
Min: -5.43 Med: 5.42 Max: 6.96
Current: 5.55
TSE:7606's Operating Margin % is ranked better than 59.49% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs TSE:7606: 5.55
United Arrows's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
United Arrows Ltd has recorded a loss in operating income at least once over the past 3 years.
United Arrows (TSE:7606) 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.
United Arrows Operating Margin % Related Terms
United Arrows Operating Margin % Historical Data
* Premium members only.
The historical data trend for United Arrows'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:7606 vs TJX, ROST, BURL: Operating Margin % Comparison
For the Apparel Retail subindustry, United Arrows'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.
United Arrows Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, United Arrows's Operating Margin % distribution charts can be found below:
* The bar in red indicates where United Arrows'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.
United Arrows'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.
United Arrows (TSE:7606) has a Operating Margin % of 0.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on United Arrows and its competitors. This is 84% below median its historical median of 5.42. According to the industry distribution chart, United Arrows ranks #457 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 40.5%.
Is United Arrows' Operating Margin % too high?
United Arrows' current Operating Margin % of 0.89% is 84% below median its 10-year median of 5.42. The Retail - Cyclical industry median Operating Margin % is 3.91. United Arrows' value of 0.89% is 77.2% below this industry median. Based on the distribution chart, United Arrows ranks #457 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, United Arrows has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does United Arrows' Operating Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, United Arrows ranks #457 out of 1128 companies for Operating Margin %. This puts United Arrows in the upper half of its industry. The industry median Operating Margin % is 3.91. United Arrows' value of 0.89% is 77.2% below this benchmark. While the company's 10-year median is 5.42 vs. the industry median of 3.91, United Arrows 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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. United Arrows's current Operating Margin % of 0.89% is 77.2% 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 United Arrows and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Arrows's current Operating Margin % is 0.89%, which is 84% below median its own 10-year median of 5.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Arrows stock overvalued right now?
Based on GuruFocus' analysis, United Arrows (TSE:7606) is currently considered Fairly Valued. The stock's GF Value™ is 円2,486.06, compared to a current price of 円2,388.00 — trading 3.9% below its estimated fair value. The current Operating Margin % is 0.89%, which is 84% below median its 10-year median of 5.42 and 77.2% below the Retail - Cyclical industry median of 3.91. United Arrows' overall GF Score™ is 86/100 with 3 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 United Arrows (TSE:7606), the current Operating Margin % is 0.89% 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 United Arrows (TSE:7606) Overvalued in 2026?
Based on GuruFocus' analysis, United Arrows stock appears to be undervalued.
The current stock price of 円2,388.00 is trading 3.9% below its estimated GF Value™ of 円2,486.06.
GuruFocus considers United Arrows to be Fairly Valued.
Key valuation signals for TSE:7606:
Operating Margin %: 0.89% (84% below median its 10-year median of 5.42)
GF Value™: 円2,486.06 vs. price of 円2,388.00 (3.9% below fair value)
Industry Position: 77.2% below the Retail - Cyclical median (#457 of 1128)
No single metric tells the full story. See the TSE:7606 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Arrows Ltd operates retail stores that primarily sell clothing, shoes, and accessories. Almost all the company's stores are located in Japan. United Arrows also has substantial online sales. The company's stores operate under many different brand names and sell both designer and private-label brands, which they procure both in Japan and internationally. United Arrows' biggest brands include United Arrows, Beauty and Youth, Green Label Relaxing, Chrome Hearts, Odette e Odile, Another Edition, and Jewel Changes.
86GF Score
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