Nakabayashi CoTSE:7987 -0.54%68 Operating Margin % is 5.57% as of Mar. 2026, which is 62% above its 10-year median of 3.44. GuruFocus rates TSE:7987 with a GF Score™ of 68/100 and a GF Value™ of 円533.67 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,070 Business Services companies, Nakabayashi Co ranks worse than 57.66% on this metric.
Nakabayashi Co (TSE:7987) 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.
Nakabayashi Co Operating Margin % Related Terms
Nakabayashi Co Operating Margin % Historical Data
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The historical data trend for Nakabayashi 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:7987 vs CTAS, CPRT, GPN: Operating Margin % Comparison
For the Specialty Business Services subindustry, Nakabayashi 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.
Nakabayashi Co Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Nakabayashi Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nakabayashi 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.
Nakabayashi 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.
Nakabayashi Co (TSE:7987) has a Operating Margin % of 5.57% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nakabayashi Co and its competitors. This is 62% above median its historical median of 3.44. Over the past decade, Nakabayashi Co's Operating Margin % has ranged from 0.75 to 4.68. According to the industry distribution chart, Nakabayashi Co ranks #617 out of 1070 companies in the Business Services industry, placing it in the top 57.7%.
Is Nakabayashi Co's Operating Margin % too high?
Nakabayashi Co's current Operating Margin % of 5.57% is 62% above median its 10-year median of 3.44. Over the past 10 years, this metric has ranged from a low of 0.75 to a high of 4.68. The Business Services industry median Operating Margin % is 6.33. Nakabayashi Co's value of 5.57% is 12% below this industry median. Based on the distribution chart, Nakabayashi Co ranks #617 out of 1070 companies in the Business Services industry, which is below the industry midpoint. Overall, Nakabayashi Co has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nakabayashi Co's Operating Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Nakabayashi Co ranks #617 out of 1070 companies for Operating Margin %. This places Nakabayashi Co in the lower half of its industry. The industry median Operating Margin % is 6.33. Nakabayashi Co's value of 5.57% is 12% below this benchmark. Historically, Nakabayashi Co's own Operating Margin % has ranged from 0.75 to 4.68 over the past decade. While the company's 10-year median is 3.44 vs. the industry median of 6.33, Nakabayashi 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 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. Nakabayashi Co's current Operating Margin % of 5.57% is 12% 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 Nakabayashi Co and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nakabayashi Co's current Operating Margin % is 5.57%, which is 62% above median its own 10-year median of 3.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nakabayashi Co stock overvalued right now?
Based on GuruFocus' analysis, Nakabayashi Co (TSE:7987) is currently considered Fairly Valued. The stock's GF Value™ is 円533.67, compared to a current price of 円557.00 — trading 4.4% above its estimated fair value. The current Operating Margin % is 5.57%, which is 62% above median its 10-year median of 3.44 and 12% below the Business Services industry median of 6.33. Nakabayashi Co's overall GF Score™ is 68/100 with 2 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 Nakabayashi Co (TSE:7987), the current Operating Margin % is 5.57% 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 Nakabayashi Co (TSE:7987) Overvalued in 2026?
Based on GuruFocus' analysis, Nakabayashi Co stock appears to be overvalued.
The current stock price of 円557.00 is trading 4.4% above its estimated GF Value™ of 円533.67.
GuruFocus considers Nakabayashi Co to be Fairly Valued.
Key valuation signals for TSE:7987:
Operating Margin %: 5.57% (62% above median its 10-year median of 3.44)
GF Value™: 円533.67 vs. price of 円557.00 (4.4% above fair value)
Industry Position: 12% below the Business Services median (#617 of 1070)
No single metric tells the full story. See the TSE:7987 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nakabayashi Co Ltd is a Japan-based company. It mainly offers business equipment and services. Its principal business activities include consumer-communications business, office appliance business, and process solution business. The company offers various products and services including data printing service, solution service for the library, temporary-employment service, storage box, gadget accessories, paper for printing, office furniture, and waste paper recycling. Nakabayashi is also engaged in woody biomass power generation, Solar power generation and agriculture business.
68GF Score
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