Shinwa Co (TSE:7607) Operating Margin %: 7.31% (As of Feb. 2026) — Near Median


TSE:7607 Shinwa Co Ltd TSE:7607
75 GF Score
Price 円3,205.00
GF Value 円3,255.39
Valuation Fairly Valued
! 3 Warning Signs
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What is Shinwa Co Operating Margin %?

Shinwa Co TSE:7607 -0.16% 75 Operating Margin % is 7.31% as of Feb. 2026, which is 7% above its 10-year median of 6.85. GuruFocus rates TSE:7607 with a GF Score™ of 75/100 and a GF Value™ of 円3,255.39 (Fairly Valued). The stock has 3 warning signs investors should review. Among 3,038 Industrial Products companies, Shinwa Co ranks worse than 53.39% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shinwa Co's Operating Income for the three months ended in Feb. 2026 was 円1,831 Mil. Shinwa Co's Revenue for the three months ended in Feb. 2026 was 円25,051 Mil. Therefore, Shinwa Co's Operating Margin % for the quarter that ended in Feb. 2026 was 7.31%.

Warning Sign:

Shinwa Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -7.4%.

The historical rank and industry rank for Shinwa Co's Operating Margin % or its related term are showing as below:

TSE:7607' s Operating Margin % Range Over the Past 10 Years
Min: 4.57   Med: 6.85   Max: 7.74
Current: 5.82


TSE:7607's Operating Margin % is ranked worse than
53.39% of 3038 companies
in the Industrial Products industry
Industry Median: 6.53 vs TSE:7607: 5.82

Shinwa Co's 5-Year Average Operating Margin % Growth Rate was -7.40% per year.

Shinwa Co's Operating Income for the three months ended in Feb. 2026 was 円1,831 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円5,159 Mil.


Shinwa Co  (TSE:7607) 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 Nokia’s 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.


Shinwa Co Operating Margin % Related Terms


Shinwa Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Shinwa 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.

Shinwa Co Operating Margin % Chart

Shinwa Co Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.54 7.34 6.56 4.57 5.27

Shinwa Co Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.29 6.84 3.34 5.49 7.31

TSE:7607 vs GEV, ETN, PH: Operating Margin % Comparison

For the Specialty Industrial Machinery subindustry, Shinwa 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.


Shinwa Co Operating Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shinwa Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Shinwa Co's Operating Margin % falls into.


TSE:7607
75GF Score
Shinwa Co Ltd TSE:7607
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Shinwa 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.

Shinwa Co's Operating Margin % for the fiscal year that ended in Aug. 2025 is calculated as

Operating Margin %=Operating Income (A: Aug. 2025 ) / Revenue (A: Aug. 2025 )
=4536.054 / 86146.486
=5.27 %

Shinwa Co's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2026 ) / Revenue (Q: Feb. 2026 )
=1831.448 / 25051.013
=7.31 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 7.31% mean?
Shinwa Co (TSE:7607) has a Operating Margin % of 7.31% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shinwa Co and its competitors. This is near median its historical median of 6.85. Over the past decade, Shinwa Co's Operating Margin % has ranged from 4.57 to 7.74. According to the industry distribution chart, Shinwa Co ranks #1622 out of 3038 companies in the Industrial Products industry, placing it in the top 53.4%.
Is Shinwa Co's Operating Margin % too high?
Shinwa Co's current Operating Margin % of 7.31% is near median its 10-year median of 6.85. Over the past 10 years, this metric has ranged from a low of 4.57 to a high of 7.74. The Industrial Products industry median Operating Margin % is 6.53. Shinwa Co's value of 7.31% is 11.9% above this industry median. Based on the distribution chart, Shinwa Co ranks #1622 out of 3038 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shinwa Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shinwa Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shinwa Co ranks #1622 out of 3038 companies for Operating Margin %. This places Shinwa Co in the lower half of its industry. The industry median Operating Margin % is 6.53. Shinwa Co's value of 7.31% is 11.9% above this benchmark. Historically, Shinwa Co's own Operating Margin % has ranged from 4.57 to 7.74 over the past decade. While the company's 10-year median is 6.85 vs. the industry median of 6.53, Shinwa 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Shinwa Co's current Operating Margin % of 7.31% is 11.9% 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 Shinwa Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinwa Co's current Operating Margin % is 7.31%, which is near median its own 10-year median of 6.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinwa Co stock overvalued right now?
Based on GuruFocus' analysis, Shinwa Co (TSE:7607) is currently considered Fairly Valued. The stock's GF Value™ is 円3,255.39, compared to a current price of 円3,205.00 — trading 1.5% below its estimated fair value. The current Operating Margin % is 7.31%, which is near median its 10-year median of 6.85 and 11.9% above the Industrial Products industry median of 6.53. Shinwa Co's overall GF Score™ is 75/100 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 Shinwa Co (TSE:7607), the current Operating Margin % is 7.31% 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 Shinwa Co (TSE:7607) Overvalued in 2026?

Based on GuruFocus' analysis, Shinwa Co stock appears to be undervalued. The current stock price of 円3,205.00 is trading 1.5% below its estimated GF Value™ of 円3,255.39. GuruFocus considers Shinwa Co to be Fairly Valued.

Key valuation signals for TSE:7607:

  • Operating Margin %: 7.31% (near median its 10-year median of 6.85)
  • GF Value™: 円3,255.39 vs. price of 円3,205.00 (1.5% below fair value)
  • GF Score™: 75/100 with 3 warning signs
  • Industry Position: 11.9% above the Industrial Products median (#1622 of 3038)

No single metric tells the full story. See the TSE:7607 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shinwa Co Business Description

Address 2-9-3, Naeshiro, Nagoya, JPN
Shinwa Co Ltd is an engineering, manufacturing, and international trading and logistics company. The deals in metal-joining, industrial machine and factory automation system related products, maintenance, re-condition and upgrade of machinery and equipment requiring specialized welding techniques.
75GF Score

Get the complete analysis for TSE:7607

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円3,205.00
Price
円3,255.39
GF Value