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Tokai Tokyo Financial HoldingsTSE:8616 -0.26%72 Operating Margin % is 10.92% as of Mar. 2026, which is 21% below its 10-year median of 13.79. GuruFocus rates TSE:8616 with a GF Score™ of 72/100 and a GF Value™ of 円627.65 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 666 Capital Markets companies, Tokai Tokyo Financial Holdings ranks better than 55.71% on this metric.
Tokai Tokyo Financial Holdings (TSE:8616) 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.
Tokai Tokyo Financial Holdings Operating Margin % Related Terms
Tokai Tokyo Financial Holdings 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.
Tokai Tokyo Financial Holdings Operating Margin % Chart
TSE:8616 vs MS, GS, SCHW: Operating Margin % Comparison
For the Capital Markets subindustry, Tokai Tokyo Financial Holdings'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.
Tokai Tokyo Financial Holdings Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Tokai Tokyo Financial Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Tokyo Financial Holdings's Operating Margin % falls into.
Tokai Tokyo Financial Holdings 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.
Tokai Tokyo Financial Holdings (TSE:8616) has a Operating Margin % of 10.92% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tokai Tokyo Financial Holdings and its competitors. This is 21% below median its historical median of 13.79. According to the industry distribution chart, Tokai Tokyo Financial Holdings ranks #295 out of 666 companies in the Capital Markets industry, placing it in the top 44.3%.
Is Tokai Tokyo Financial Holdings' Operating Margin % too high?
Tokai Tokyo Financial Holdings' current Operating Margin % of 10.92% is 21% below median its 10-year median of 13.79. The Capital Markets industry median Operating Margin % is 7.27. Tokai Tokyo Financial Holdings' value of 10.92% is 50.3% above this industry median. Based on the distribution chart, Tokai Tokyo Financial Holdings ranks #295 out of 666 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Tokai Tokyo Financial Holdings has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Tokyo Financial Holdings' Operating Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Tokai Tokyo Financial Holdings ranks #295 out of 666 companies for Operating Margin %. This puts Tokai Tokyo Financial Holdings in the upper half of its industry. The industry median Operating Margin % is 7.27. Tokai Tokyo Financial Holdings' value of 10.92% is 50.3% above this benchmark. While the company's 10-year median is 13.79 vs. the industry median of 7.27, Tokai Tokyo Financial Holdings 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 Capital Markets company?
The median Operating Margin % among Capital Markets companies is 7.27, based on 666 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. Tokai Tokyo Financial Holdings's current Operating Margin % of 10.92% is 50.3% 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 Tokai Tokyo Financial Holdings and its competitors. For the Capital Markets industry, the median Operating Margin % is 7.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Tokyo Financial Holdings's current Operating Margin % is 10.92%, which is 21% below median its own 10-year median of 13.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Tokyo Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tokai Tokyo Financial Holdings (TSE:8616) is currently considered Modestly Overvalued. The stock's GF Value™ is 円627.65, compared to a current price of 円774.00 — trading 23.3% above its estimated fair value. The current Operating Margin % is 10.92%, which is 21% below median its 10-year median of 13.79 and 50.3% above the Capital Markets industry median of 7.27. Tokai Tokyo Financial Holdings' overall GF Score™ is 72/100 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 Tokai Tokyo Financial Holdings (TSE:8616), the current Operating Margin % is 10.92% 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 Tokai Tokyo Financial Holdings (TSE:8616) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Tokyo Financial Holdings stock appears to be overvalued.
The current stock price of 円774.00 is trading 23.3% above its estimated GF Value™ of 円627.65.
GuruFocus considers Tokai Tokyo Financial Holdings to be Modestly Overvalued.
Key valuation signals for TSE:8616:
Operating Margin %: 10.92% (21% below median its 10-year median of 13.79)
GF Value™: 円627.65 vs. price of 円774.00 (23.3% above fair value)
Industry Position: 50.3% above the Capital Markets median (#295 of 666)
No single metric tells the full story. See the TSE:8616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Tokyo Financial Holdings Business Description
Tokai Tokyo Financial Holdings Inc. is the holding company of the Tokai Tokyo Financial Group. It operates and manages the group's companies. Tokai Tokyo Financial Group consists primarily of companies in Japan, but a few are in overseas markets. Tokyo Securities is the operating nucleus of the group and manages financial instruments businesses, fund management, back-office services, and research. For the overall group, operations are divided into trading activities and commissions. Tokai's commissions are gained through brokerage services and underwriting and distribution.
72GF Score
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