ROYAL HOLDINGS CoTSE:8179 +0.66%75 Operating Margin % is 3.86% as of Mar. 2026, which is 4% below its 10-year median of 4.04. GuruFocus rates TSE:8179 with a GF Score™ of 75/100 and a GF Value™ of 円1,472.97 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 365 Restaurants companies, ROYAL HOLDINGS Co ranks better than 51.23% on this metric.
ROYAL HOLDINGS Co (TSE:8179) 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.
ROYAL HOLDINGS Co Operating Margin % Related Terms
ROYAL HOLDINGS Co Operating Margin % Historical Data
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The historical data trend for ROYAL HOLDINGS 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:8179 vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, ROYAL 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.
ROYAL HOLDINGS Co Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, ROYAL HOLDINGS Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ROYAL HOLDINGS 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.
ROYAL HOLDINGS Co's Operating Margin % for the fiscal year that ended in Dec. 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.
ROYAL HOLDINGS Co (TSE:8179) has a Operating Margin % of 3.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ROYAL HOLDINGS Co and its competitors. This is near median its historical median of 4.04. According to the industry distribution chart, ROYAL HOLDINGS Co ranks #178 out of 365 companies in the Restaurants industry, placing it in the top 48.8%.
Is ROYAL HOLDINGS Co's Operating Margin % too high?
ROYAL HOLDINGS Co's current Operating Margin % of 3.86% is near median its 10-year median of 4.04. The Restaurants industry median Operating Margin % is 4.26. ROYAL HOLDINGS Co's value of 3.86% is 9.4% below this industry median. Based on the distribution chart, ROYAL HOLDINGS Co ranks #178 out of 365 companies in the Restaurants industry, which is above the industry midpoint. Overall, ROYAL HOLDINGS Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ROYAL HOLDINGS Co's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, ROYAL HOLDINGS Co ranks #178 out of 365 companies for Operating Margin %. This puts ROYAL HOLDINGS Co in the upper half of its industry. The industry median Operating Margin % is 4.26. ROYAL HOLDINGS Co's value of 3.86% is 9.4% below this benchmark. While the company's 10-year median is 4.04 vs. the industry median of 4.26, ROYAL HOLDINGS 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 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. ROYAL HOLDINGS Co's current Operating Margin % of 3.86% is 9.4% 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 ROYAL HOLDINGS Co and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ROYAL HOLDINGS Co's current Operating Margin % is 3.86%, which is near median its own 10-year median of 4.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ROYAL HOLDINGS Co stock overvalued right now?
Based on GuruFocus' analysis, ROYAL HOLDINGS Co (TSE:8179) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,472.97, compared to a current price of 円1,225.00 — trading 16.8% below its estimated fair value. The current Operating Margin % is 3.86%, which is near median its 10-year median of 4.04 and 9.4% below the Restaurants industry median of 4.26. ROYAL HOLDINGS Co's overall GF Score™ is 75/100 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 ROYAL HOLDINGS Co (TSE:8179), the current Operating Margin % is 3.86% 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 ROYAL HOLDINGS Co (TSE:8179) Overvalued in 2026?
Based on GuruFocus' analysis, ROYAL HOLDINGS Co stock appears to be undervalued.
The current stock price of 円1,225.00 is trading 16.8% below its estimated GF Value™ of 円1,472.97.
GuruFocus considers ROYAL HOLDINGS Co to be Modestly Undervalued.
Key valuation signals for TSE:8179:
Operating Margin %: 3.86% (near median its 10-year median of 4.04)
GF Value™: 円1,472.97 vs. price of 円1,225.00 (16.8% below fair value)
Industry Position: 9.4% below the Restaurants median (#178 of 365)
No single metric tells the full story. See the TSE:8179 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ROYAL HOLDINGS Co Ltd operates five core businesses in Japan: Restaurants, Hotels, Contract Food Services, In-Flight Catering, and Food Manufacturing. Royal's Restaurants business operates various brands, including Royal Host, Tenya, Cowboy Family, Shakey's, Sizzler, Hananoki, Royal Garden Cafe, pinkberry, The Third Cafe, and Rose Bakery. The company's Hotel business operates Richmond Hotels. Contract Food Services provides food in airports, highway service areas, department stores, and convention centers. In-Flight Catering provides meals for dozens of airlines all over the world. The Food Manufacturing business has two central kitchens in Japan that serve the company's other businesses. The group has four segments: restaurant business, contract business, Hotel Business, & Food Business.
75GF Score
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