Tay Two Co (TSE:7610) Operating Margin %: 3.37% (As of Feb. 2026) — 17% Above Median


TSE:7610 Tay Two Co Ltd TSE:7610
69 GF Score
Price 円145.00
GF Value 円165.16
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Tay Two Co Operating Margin %?

Tay Two Co TSE:7610 +2.84% 69 Operating Margin % is 3.37% as of Feb. 2026, which is 17% above its 10-year median of 2.88. GuruFocus rates TSE:7610 with a GF Score™ of 69/100 and a GF Value™ of 円165.16 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Tay Two Co ranks worse than 53.37% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tay Two Co's Operating Income for the six months ended in Feb. 2026 was 円771 Mil. Tay Two Co's Revenue for the six months ended in Feb. 2026 was 円22,898 Mil. Therefore, Tay Two Co's Operating Margin % for the quarter that ended in Feb. 2026 was 3.37%.

Warning Sign:

Tay Two Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.1%.

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

TSE:7610' s Operating Margin % Range Over the Past 10 Years
Min: -1.55   Med: 2.88   Max: 4.98
Current: 3.26


TSE:7610's Operating Margin % is ranked worse than
53.37% of 1128 companies
in the Retail - Cyclical industry
Industry Median: 3.905 vs TSE:7610: 3.26

Tay Two Co's 5-Year Average Operating Margin % Growth Rate was -8.10% per year.

Tay Two Co's Operating Income for the six months ended in Feb. 2026 was 円771 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円1,378 Mil.


Tay Two Co  (TSE:7610) 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.


Tay Two Co Operating Margin % Related Terms


Tay Two Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Tay Two 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.

Tay Two Co Operating Margin % Chart

Tay Two Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.86 4.98 3.79 2.50 3.26

Tay Two Co Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 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 2.14 1.65 3.29 3.14 3.37

TSE:7610 vs CASY, WSM, ULTA: Operating Margin % Comparison

For the Specialty Retail subindustry, Tay Two 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.


Tay Two Co Operating Margin % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Tay Two Co's Operating Margin % distribution charts can be found below:

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


TSE:7610
69GF Score
Tay Two Co Ltd TSE:7610
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tay Two 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.

Tay Two Co's Operating Margin % for the fiscal year that ended in Feb. 2026 is calculated as

Operating Margin %=Operating Income (A: Feb. 2026 ) / Revenue (A: Feb. 2026 )
=1377.803 / 42233.216
=3.26 %

Tay Two 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 )
=770.996 / 22897.868
=3.37 %

* 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 3.37% mean?
Tay Two Co (TSE:7610) has a Operating Margin % of 3.37% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tay Two Co and its competitors. This is 17% above median its historical median of 2.88. According to the industry distribution chart, Tay Two Co ranks #602 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 53.4%.
Is Tay Two Co's Operating Margin % too high?
Tay Two Co's current Operating Margin % of 3.37% is 17% above median its 10-year median of 2.88. The Retail - Cyclical industry median Operating Margin % is 3.91. Tay Two Co's value of 3.37% is 13.7% below this industry median. Based on the distribution chart, Tay Two Co ranks #602 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Tay Two Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tay Two Co's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Tay Two Co ranks #602 out of 1128 companies for Operating Margin %. This places Tay Two Co in the lower half of its industry. The industry median Operating Margin % is 3.91. Tay Two Co's value of 3.37% is 13.7% below this benchmark. While the company's 10-year median is 2.88 vs. the industry median of 3.91, Tay Two Co 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. Tay Two Co's current Operating Margin % of 3.37% is 13.7% 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 Tay Two Co 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. Tay Two Co's current Operating Margin % is 3.37%, which is 17% above median its own 10-year median of 2.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tay Two Co stock overvalued right now?
Based on GuruFocus' analysis, Tay Two Co (TSE:7610) is currently considered Modestly Undervalued. The stock's GF Value™ is 円165.16, compared to a current price of 円145.00 — trading 12.2% below its estimated fair value. The current Operating Margin % is 3.37%, which is 17% above median its 10-year median of 2.88 and 13.7% below the Retail - Cyclical industry median of 3.91. Tay Two Co's overall GF Score™ is 69/100 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 Tay Two Co (TSE:7610), the current Operating Margin % is 3.37% 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 Tay Two Co (TSE:7610) Overvalued in 2026?

Based on GuruFocus' analysis, Tay Two Co stock appears to be undervalued. The current stock price of 円145.00 is trading 12.2% below its estimated GF Value™ of 円165.16. GuruFocus considers Tay Two Co to be Modestly Undervalued.

Key valuation signals for TSE:7610:

  • Operating Margin %: 3.37% (17% above median its 10-year median of 2.88)
  • GF Value™: 円165.16 vs. price of 円145.00 (12.2% below fair value)
  • GF Score™: 69/100 with 4 warning signs
  • Industry Position: 13.7% below the Retail - Cyclical median (#602 of 1128)

No single metric tells the full story. See the TSE:7610 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tay Two Co Business Description

Address 650-111 Imamura, Kita-ku, Okayama, JPN, 700-0974
Tay Two Co Ltd is engaged in the sale and purchase of shops that provide inexpensive entertainment, household game software, trading cards, CDs and DVD, and their rental work.
69GF Score

Get the complete analysis for TSE:7610

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

円145.00
Price
円165.16
GF Value