Muto Seiko CoTSE:7927 +1.13%83 Operating Margin % is 6.91% as of Mar. 2026, which is 22% above its 10-year median of 5.66. GuruFocus rates TSE:7927 with a GF Score™ of 83/100 and a GF Value™ of 円1,942.74 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,472 Hardware companies, Muto Seiko Co ranks better than 67.88% on this metric.
Muto Seiko Co (TSE:7927) 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.
Muto Seiko Co Operating Margin % Related Terms
Muto Seiko Co Operating Margin % Historical Data
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The historical data trend for Muto Seiko 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:7927 vs APH, GLW: Operating Margin % Comparison
For the Electronic Components subindustry, Muto Seiko 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.
Muto Seiko Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Muto Seiko Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Muto Seiko 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.
Muto Seiko 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.
Muto Seiko Co (TSE:7927) has a Operating Margin % of 6.91% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Muto Seiko Co and its competitors. This is 22% above median its historical median of 5.66. Over the past decade, Muto Seiko Co's Operating Margin % has ranged from 2.30 to 7.83. According to the industry distribution chart, Muto Seiko Co ranks #794 out of 2472 companies in the Hardware industry, placing it in the top 32.1%.
Is Muto Seiko Co's Operating Margin % too high?
Muto Seiko Co's current Operating Margin % of 6.91% is 22% above median its 10-year median of 5.66. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 7.83. The Hardware industry median Operating Margin % is 3.83. Muto Seiko Co's value of 6.91% is 80.4% above this industry median. Based on the distribution chart, Muto Seiko Co ranks #794 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, Muto Seiko Co has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Muto Seiko Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Muto Seiko Co ranks #794 out of 2472 companies for Operating Margin %. This puts Muto Seiko Co in the upper half of its industry. The industry median Operating Margin % is 3.83. Muto Seiko Co's value of 6.91% is 80.4% above this benchmark. Historically, Muto Seiko Co's own Operating Margin % has ranged from 2.30 to 7.83 over the past decade. While the company's 10-year median is 5.66 vs. the industry median of 3.83, Muto Seiko 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.83, based on 2,472 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. Muto Seiko Co's current Operating Margin % of 6.91% is 80.4% 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 Muto Seiko Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muto Seiko Co's current Operating Margin % is 6.91%, which is 22% above median its own 10-year median of 5.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muto Seiko Co stock overvalued right now?
Based on GuruFocus' analysis, Muto Seiko Co (TSE:7927) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,942.74, compared to a current price of 円2,244.00 — trading 15.5% above its estimated fair value. The current Operating Margin % is 6.91%, which is 22% above median its 10-year median of 5.66 and 80.4% above the Hardware industry median of 3.83. Muto Seiko Co's overall GF Score™ is 83/100 with 1 warning sign 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 Muto Seiko Co (TSE:7927), the current Operating Margin % is 6.91% 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 Muto Seiko Co (TSE:7927) Overvalued in 2026?
Based on GuruFocus' analysis, Muto Seiko Co stock appears to be overvalued.
The current stock price of 円2,244.00 is trading 15.5% above its estimated GF Value™ of 円1,942.74.
GuruFocus considers Muto Seiko Co to be Modestly Overvalued.
Key valuation signals for TSE:7927:
Operating Margin %: 6.91% (22% above median its 10-year median of 5.66)
GF Value™: 円1,942.74 vs. price of 円2,244.00 (15.5% above fair value)
Industry Position: 80.4% above the Hardware median (#794 of 2472)
No single metric tells the full story. See the TSE:7927 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muto Seiko Co manufactures and sells plastic parts for digital home appliances such as digital cameras and video cameras, center panel units including car navigation systems, air conditioners, and audio equipment, and automobile-related parts such as ETC, and molds for injection molding and pressing.
83GF Score
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