Top Culture CoTSE:7640 47 Operating Margin % is 1.52% as of Apr. 2026. GuruFocus rates TSE:7640 with a GF Score™ of 47/100 and a GF Value™ of 円129.59 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Top Culture Co ranks worse than 77.57% on this metric.
The historical rank and industry rank for Top Culture Co's Operating Margin % or its related term are showing as below:
TSE:7640'
s Operating Margin % Range Over the Past 10 Years
Min: -4.23 Med: -0.09 Max: 2.35
Current: -0.78
TSE:7640's Operating Margin % is ranked worse than 77.57% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs TSE:7640: -0.78
Top Culture Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Top Culture Co (TSE:7640) 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.
Top Culture Co Operating Margin % Related Terms
Top Culture Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Top Culture 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:7640 vs CASY, WSM, ULTA: Operating Margin % Comparison
For the Specialty Retail subindustry, Top Culture 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.
Top Culture Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Top Culture Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Top Culture 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.
Top Culture Co's Operating Margin % for the fiscal year that ended in Oct. 2025 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.
Top Culture Co (TSE:7640) has a Operating Margin % of 1.52% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Top Culture Co and its competitors. According to the industry distribution chart, Top Culture Co ranks #875 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 77.6%.
Is Top Culture Co's Operating Margin % too high?
Top Culture Co's current Operating Margin % is 1.52%. The Retail - Cyclical industry median Operating Margin % is 3.91. Top Culture Co's value of 1.52% is 61.1% below this industry median. Based on the distribution chart, Top Culture Co ranks #875 out of 1128 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Top Culture Co has a GF Score™ of 47/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Top Culture Co's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Top Culture Co ranks #875 out of 1128 companies for Operating Margin %. This places Top Culture Co in the lower half of its industry. The industry median Operating Margin % is 3.91. Top Culture Co's value of 1.52% is 61.1% below this benchmark. 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. Top Culture Co's current Operating Margin % of 1.52% is 61.1% 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 Top Culture 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. Top Culture Co's current Operating Margin % is 1.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Top Culture Co stock overvalued right now?
Based on GuruFocus' analysis, Top Culture Co (TSE:7640) is currently considered Modestly Overvalued. The stock's GF Value™ is 円129.59, compared to a current price of 円168.00 — trading 29.6% above its estimated fair value. The current Operating Margin % is 1.52% and 61.1% below the Retail - Cyclical industry median of 3.91. Top Culture Co's overall GF Score™ is 47/100 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 Top Culture Co (TSE:7640), the current Operating Margin % is 1.52% 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 Top Culture Co (TSE:7640) Overvalued in 2026?
Based on GuruFocus' analysis, Top Culture Co stock appears to be overvalued.
The current stock price of 円168.00 is trading 29.6% above its estimated GF Value™ of 円129.59.
GuruFocus considers Top Culture Co to be Modestly Overvalued.
Key valuation signals for TSE:7640:
Operating Margin %: 1.52%
GF Value™: 円129.59 vs. price of 円168.00 (29.6% above fair value)
Industry Position: 61.1% below the Retail - Cyclical median (#875 of 1128)
No single metric tells the full story. See the TSE:7640 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Top Culture Co Ltd is a speciality retail company. The firm mainly sells books, stationery, music and video software. The company owns and operates approximately 74 retail stores in Japan. In addition, the company is engaged in the management of sports facilities and maintenance of store facilities. Its reportable segments are: Tsutaya Bookstore Business, Games and trading cards business, Sports-related business, Visiting nurse business, and Catering business.
47GF Score
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