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Nihon Flush CoTSE:7820 -1.52%62 Operating Margin % is 9.79% as of Mar. 2026, which is 33% below its 10-year median of 14.55. GuruFocus rates TSE:7820 with a GF Score™ of 62/100 and a GF Value™ of 円826.64 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,773 Construction companies, Nihon Flush Co ranks better than 59% on this metric.
Nihon Flush Co (TSE:7820) 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.
Nihon Flush Co Operating Margin % Related Terms
Nihon Flush Co Operating Margin % Historical Data
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The historical data trend for Nihon Flush 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:7820 vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Nihon Flush 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.
Nihon Flush Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Nihon Flush Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nihon Flush 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.
Nihon Flush Co'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.
Nihon Flush Co (TSE:7820) has a Operating Margin % of 9.79% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nihon Flush Co and its competitors. This is 33% below median its historical median of 14.55. Over the past decade, Nihon Flush Co's Operating Margin % has ranged from 3.23 to 15.46. According to the industry distribution chart, Nihon Flush Co ranks #727 out of 1773 companies in the Construction industry, placing it in the top 41%.
Is Nihon Flush Co's Operating Margin % too high?
Nihon Flush Co's current Operating Margin % of 9.79% is 33% below median its 10-year median of 14.55. Over the past 10 years, this metric has ranged from a low of 3.23 to a high of 15.46. The Construction industry median Operating Margin % is 5.91. Nihon Flush Co's value of 9.79% is 65.7% above this industry median. Based on the distribution chart, Nihon Flush Co ranks #727 out of 1773 companies in the Construction industry, which is above the industry midpoint. Overall, Nihon Flush Co has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Flush Co's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Nihon Flush Co ranks #727 out of 1773 companies for Operating Margin %. This puts Nihon Flush Co in the upper half of its industry. The industry median Operating Margin % is 5.91. Nihon Flush Co's value of 9.79% is 65.7% above this benchmark. Historically, Nihon Flush Co's own Operating Margin % has ranged from 3.23 to 15.46 over the past decade. While the company's 10-year median is 14.55 vs. the industry median of 5.91, Nihon Flush 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 Construction company?
The median Operating Margin % among Construction companies is 5.91, based on 1,773 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. Nihon Flush Co's current Operating Margin % of 9.79% is 65.7% 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 Nihon Flush Co and its competitors. For the Construction industry, the median Operating Margin % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Flush Co's current Operating Margin % is 9.79%, which is 33% below median its own 10-year median of 14.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Flush Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Flush Co (TSE:7820) is currently considered Modestly Undervalued. The stock's GF Value™ is 円826.64, compared to a current price of 円711.00 — trading 14% below its estimated fair value. The current Operating Margin % is 9.79%, which is 33% below median its 10-year median of 14.55 and 65.7% above the Construction industry median of 5.91. Nihon Flush Co's overall GF Score™ is 62/100 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 Nihon Flush Co (TSE:7820), the current Operating Margin % is 9.79% 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 Nihon Flush Co (TSE:7820) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Flush Co stock appears to be undervalued.
The current stock price of 円711.00 is trading 14% below its estimated GF Value™ of 円826.64.
GuruFocus considers Nihon Flush Co to be Modestly Undervalued.
Key valuation signals for TSE:7820:
Operating Margin %: 9.79% (33% below median its 10-year median of 14.55)
GF Value™: 円826.64 vs. price of 円711.00 (14% below fair value)
Industry Position: 65.7% above the Construction median (#727 of 1773)
No single metric tells the full story. See the TSE:7820 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Flush Co Ltd is mainly engaged in the manufacture and sale of interior system components such as interior doors, decorative fittings, furniture and kitchenware, decorative construction materials, and storage boxes. It also provides installation and construction services related to its products. The group is composed of the following geographical segments: China, which is its key revenue-generating market, and Japan.
62GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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