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Saikaya Department Store Co (TSE:8254) 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.
Saikaya Department Store Co Operating Margin % Related Terms
Saikaya Department Store 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.
Saikaya Department Store Co Operating Margin % Chart
For the Department Stores subindustry, Saikaya Department Store 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.
Saikaya Department Store Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Saikaya Department Store Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Saikaya Department Store Co's Operating Margin % falls into.
Saikaya Department Store 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.
Saikaya Department Store Co's Operating Margin % for the fiscal year that ended in Aug. 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.
Saikaya Department Store Co (TSE:8254) has a Operating Margin % of 2.46% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Saikaya Department Store Co and its competitors. According to the industry distribution chart, Saikaya Department Store Co ranks #670 out of 1129 companies in the Retail - Cyclical industry, placing it in the top 59.3%.
Is Saikaya Department Store Co's Operating Margin % too high?
Saikaya Department Store Co's current Operating Margin % is 2.46%. The Retail - Cyclical industry median Operating Margin % is 3.89. Saikaya Department Store Co's value of 2.46% is 36.8% below this industry median. Based on the distribution chart, Saikaya Department Store Co ranks #670 out of 1129 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Saikaya Department Store Co has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saikaya Department Store Co's Operating Margin % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Saikaya Department Store Co ranks #670 out of 1129 companies for Operating Margin %. This places Saikaya Department Store Co in the lower half of its industry. The industry median Operating Margin % is 3.89. Saikaya Department Store Co's value of 2.46% is 36.8% below this benchmark. 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.89, based on 1,129 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. Saikaya Department Store Co's current Operating Margin % of 2.46% is 36.8% 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 Saikaya Department Store Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saikaya Department Store Co's current Operating Margin % is 2.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saikaya Department Store Co stock overvalued right now?
Based on GuruFocus' analysis, Saikaya Department Store Co (TSE:8254) is currently considered Modestly Undervalued. The stock's GF Value™ is 円325.83, compared to a current price of 円277.00 — trading 15% below its estimated fair value. The current Operating Margin % is 2.46% and 36.8% below the Retail - Cyclical industry median of 3.89. Saikaya Department Store Co's overall GF Score™ is 47/100 with 5 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 Saikaya Department Store Co (TSE:8254), the current Operating Margin % is 2.46% as of Feb. 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 Saikaya Department Store Co (TSE:8254) Overvalued in 2026?
Based on GuruFocus' analysis, Saikaya Department Store Co stock appears to be undervalued.
The current stock price of 円277.00 is trading 15% below its estimated GF Value™ of 円325.83.
GuruFocus considers Saikaya Department Store Co to be Modestly Undervalued.
Key valuation signals for TSE:8254:
Operating Margin %: 2.46%
GF Value™: 円325.83 vs. price of 円277.00 (15% below fair value)
Industry Position: 36.8% below the Retail - Cyclical median (#670 of 1129)
No single metric tells the full story. See the TSE:8254 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saikaya Department Store Co Ltd formerly, Saikaya Co Ltd operates in the department stores industry. The company is engaged in the operation of department store chains in Kanagawa prefecture. It also operates a supermarket chain and real estate business.
47GF 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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