Paramount Bed Holdings Co (TSE:7817) 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.
Paramount Bed Holdings Co Operating Margin % Related Terms
Paramount Bed Holdings Co Operating Margin % Historical Data
* 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.
Paramount Bed Holdings Co Operating Margin % Chart
TSE:7817 vs ISRG, BDX, MDLN: Operating Margin % Comparison
For the Medical Instruments & Supplies subindustry, Paramount Bed Holdings 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.
Paramount Bed Holdings Co Operating Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Paramount Bed Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Paramount Bed Holdings Co's Operating Margin % falls into.
Paramount Bed Holdings 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.
Paramount Bed Holdings Co's Operating Margin % for the fiscal year that ended in Mar. 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.
Paramount Bed Holdings Co (TSE:7817) has a Operating Margin % of 6.30% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Paramount Bed Holdings Co and its competitors. This is 52% below median its historical median of 13.25. Over the past decade, Paramount Bed Holdings Co's Operating Margin % has ranged from 5.63 to 15.05.
Is Paramount Bed Holdings Co's Operating Margin % too high?
Paramount Bed Holdings Co's current Operating Margin % of 6.30% is 52% below median its 10-year median of 13.25. Over the past 10 years, this metric has ranged from a low of 5.63 to a high of 15.05. The Medical Devices & Instruments industry median Operating Margin % is 3.47. Paramount Bed Holdings Co's value of 6.30% is 81.8% above this industry median. Overall, Paramount Bed Holdings Co has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Paramount Bed Holdings Co's Operating Margin % compare to ISRG and BDX?
Paramount Bed Holdings Co's Operating Margin % of 6.30% can be compared against companies in the Medical Devices & Instruments industry. The industry median Operating Margin % is 3.47. Paramount Bed Holdings Co's value of 6.30% is 81.8% above this benchmark. Historically, Paramount Bed Holdings Co's own Operating Margin % has ranged from 5.63 to 15.05 over the past decade. While the company's 10-year median is 13.25 vs. the industry median of 3.47, Paramount Bed Holdings 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 a Medical Devices & Instruments company?
The median Operating Margin % among Medical Devices & Instruments companies is 3.47, based on 816 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. Paramount Bed Holdings Co's current Operating Margin % of 6.30% is 81.8% 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 Paramount Bed Holdings Co and its competitors. For the Medical Devices & Instruments industry, the median Operating Margin % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Bed Holdings Co's current Operating Margin % is 6.30%, which is 52% below median its own 10-year median of 13.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Bed Holdings Co stock overvalued right now?
Paramount Bed Holdings Co (TSE:7817) has a current Operating Margin % of 6.30%. The stock's GF Value™ is 円2,907.43, compared to a current price of 円3,515.00 — trading 20.9% above its estimated fair value. The current Operating Margin % is 6.30%, which is 52% below median its 10-year median of 13.25 and 81.8% above the Medical Devices & Instruments industry median of 3.47. Paramount Bed Holdings Co's overall GF Score™ is 69/100 with 6 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 Paramount Bed Holdings Co (TSE:7817), the current Operating Margin % is 6.30% as of Sep. 2025. 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 Paramount Bed Holdings Co (TSE:7817) Overvalued in 2026?
Based on GuruFocus' analysis, Paramount Bed Holdings Co stock appears to be overvalued.
The current stock price of 円3,515.00 is trading 20.9% above its estimated GF Value™ of 円2,907.43.
Key valuation signals for TSE:7817:
Operating Margin %: 6.30% (52% below median its 10-year median of 13.25)
GF Value™: 円2,907.43 vs. price of 円3,515.00 (20.9% above fair value)
Industry Position: 81.8% above the Medical Devices & Instruments median
No single metric tells the full story. See the TSE:7817 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paramount Bed Holdings Co Ltd manufactures medical and nursing care products. Its acute care business sells products to intensive care units and other acute care facilities to relieve patient discomfort and prevent secondary infections. The long-term care business sells products used at long-term medical care facilities and nursing homes. The residential and nursing care business sells products to nurses and home-care helpers. The sleep and wellness business sells products to help customers sleep soundly, which include custom-made mattresses. The maintenance business provides bed maintenance and cleaning services. Paramount Bed generates the vast majority of its revenue in Japan.
69GF Score
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