Kawai Musical Instruments Manufacturing Co (TSE:7952) 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.
Kawai Musical Instruments Manufacturing Co Operating Margin % Related Terms
Kawai Musical Instruments Manufacturing 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.
Kawai Musical Instruments Manufacturing Co Operating Margin % Chart
Kawai Musical Instruments Manufacturing Co Annual Data
TSE:7952 vs AS, HAS, LTH: Operating Margin % Comparison
For the Leisure subindustry, Kawai Musical Instruments Manufacturing 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.
Kawai Musical Instruments Manufacturing Co Operating Margin % vs Travel & Leisure Industry
Kawai Musical Instruments Manufacturing 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.
* 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.
Kawai Musical Instruments Manufacturing Co (TSE:7952) has a Operating Margin % of 1.45% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kawai Musical Instruments Manufacturing Co and its competitors. This is 65% below median its historical median of 4.11. Over the past decade, Kawai Musical Instruments Manufacturing Co's Operating Margin % has ranged from 0.16 to 7.81. According to the industry distribution chart, Kawai Musical Instruments Manufacturing Co ranks #600 out of 839 companies in the Travel & Leisure industry, placing it in the top 71.5%.
Is Kawai Musical Instruments Manufacturing Co's Operating Margin % too high?
Kawai Musical Instruments Manufacturing Co's current Operating Margin % of 1.45% is 65% below median its 10-year median of 4.11. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 7.81. The Travel & Leisure industry median Operating Margin % is 8.07. Kawai Musical Instruments Manufacturing Co's value of 1.45% is 82% below this industry median. Based on the distribution chart, Kawai Musical Instruments Manufacturing Co ranks #600 out of 839 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Kawai Musical Instruments Manufacturing Co has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawai Musical Instruments Manufacturing Co's Operating Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Kawai Musical Instruments Manufacturing Co ranks #600 out of 839 companies for Operating Margin %. This places Kawai Musical Instruments Manufacturing Co in the lower half of its industry. The industry median Operating Margin % is 8.07. Kawai Musical Instruments Manufacturing Co's value of 1.45% is 82% below this benchmark. Historically, Kawai Musical Instruments Manufacturing Co's own Operating Margin % has ranged from 0.16 to 7.81 over the past decade. While the company's 10-year median is 4.11 vs. the industry median of 8.07, Kawai Musical Instruments Manufacturing 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.07, based on 839 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. Kawai Musical Instruments Manufacturing Co's current Operating Margin % of 1.45% is 82% 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 Kawai Musical Instruments Manufacturing Co and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawai Musical Instruments Manufacturing Co's current Operating Margin % is 1.45%, which is 65% below median its own 10-year median of 4.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawai Musical Instruments Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Kawai Musical Instruments Manufacturing Co (TSE:7952) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,733.98, compared to a current price of 円3,210.00 — trading 17.4% above its estimated fair value. The current Operating Margin % is 1.45%, which is 65% below median its 10-year median of 4.11 and 82% below the Travel & Leisure industry median of 8.07. Kawai Musical Instruments Manufacturing Co's overall GF Score™ is 64/100 with 11 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 Kawai Musical Instruments Manufacturing Co (TSE:7952), the current Operating Margin % is 1.45% 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 Kawai Musical Instruments Manufacturing Co (TSE:7952) Overvalued in 2026?
Based on GuruFocus' analysis, Kawai Musical Instruments Manufacturing Co stock appears to be overvalued.
The current stock price of 円3,210.00 is trading 17.4% above its estimated GF Value™ of 円2,733.98.
GuruFocus considers Kawai Musical Instruments Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSE:7952:
Operating Margin %: 1.45% (65% below median its 10-year median of 4.11)
GF Value™: 円2,733.98 vs. price of 円3,210.00 (17.4% above fair value)
Industry Position: 82% below the Travel & Leisure median (#600 of 839)
No single metric tells the full story. See the TSE:7952 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawai Musical Instruments Manufacturing Co Business Description
Kawai Musical Instruments Manufacturing Co Ltd is a Japan-based musical instrument manufacturer. The company is mainly engaged in manufacturing and sales of musical instruments, precision metals, wood products, and electronic devices. Products offered by the company include grand pianos, upright pianos, digital pianos, hybrid pianos, and anytime pianos. It sells its products under the brand name Philosophy, Legacy, Artists, Competitions, and Institutions. Kawai has world-wide sales networks, it distributes its products in Europe, America, Asia and Oceania, Africa and the Middle East. The company is also engaged in the development and sales of software and operations of music schools, and gymnastics schools.
64GF Score
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