Traders Holdings CoTSE:8704 +1.88%85 Operating Margin % is 54.98% as of Mar. 2026, which is 52% above its 10-year median of 36.27. GuruFocus rates TSE:8704 with a GF Score™ of 85/100 and a GF Value™ of 円1,034.02 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 666 Capital Markets companies, Traders Holdings Co ranks better than 80.93% on this metric.
Traders Holdings Co (TSE:8704) 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.
Traders Holdings Co Operating Margin % Related Terms
Traders Holdings Co Operating Margin % Historical Data
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The historical data trend for Traders 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:8704 vs MS, GS, SCHW: Operating Margin % Comparison
For the Capital Markets subindustry, Traders 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.
Traders Holdings Co Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Traders Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Traders Holdings Co's Operating Margin % falls into.
Traders Holdings 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.
Traders Holdings 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.
Traders Holdings Co (TSE:8704) has a Operating Margin % of 54.98% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Traders Holdings Co and its competitors. This is 52% above median its historical median of 36.27. According to the industry distribution chart, Traders Holdings Co ranks #127 out of 666 companies in the Capital Markets industry, placing it in the top 19.1%.
Is Traders Holdings Co's Operating Margin % too high?
Traders Holdings Co's current Operating Margin % of 54.98% is 52% above median its 10-year median of 36.27. The Capital Markets industry median Operating Margin % is 7.27. Traders Holdings Co's value of 54.98% is 656.8% above this industry median. Based on the distribution chart, Traders Holdings Co ranks #127 out of 666 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Traders Holdings Co has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Traders Holdings Co's Operating Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Traders Holdings Co ranks #127 out of 666 companies for Operating Margin %. This places Traders Holdings Co in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.27. Traders Holdings Co's value of 54.98% is 656.8% above this benchmark. While the company's 10-year median is 36.27 vs. the industry median of 7.27, Traders Holdings Co 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. Traders Holdings Co's current Operating Margin % of 54.98% is 656.8% 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 Traders Holdings Co 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. Traders Holdings Co's current Operating Margin % is 54.98%, which is 52% above median its own 10-year median of 36.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Traders Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Traders Holdings Co (TSE:8704) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,034.02, compared to a current price of 円1,246.00 — trading 20.5% above its estimated fair value. The current Operating Margin % is 54.98%, which is 52% above median its 10-year median of 36.27 and 656.8% above the Capital Markets industry median of 7.27. Traders Holdings Co's overall GF Score™ is 85/100 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 Traders Holdings Co (TSE:8704), the current Operating Margin % is 54.98% 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 Traders Holdings Co (TSE:8704) Overvalued in 2026?
Based on GuruFocus' analysis, Traders Holdings Co stock appears to be overvalued.
The current stock price of 円1,246.00 is trading 20.5% above its estimated GF Value™ of 円1,034.02.
GuruFocus considers Traders Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:8704:
Operating Margin %: 54.98% (52% above median its 10-year median of 36.27)
GF Value™: 円1,034.02 vs. price of 円1,246.00 (20.5% above fair value)
Industry Position: 656.8% above the Capital Markets median (#127 of 666)
No single metric tells the full story. See the TSE:8704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Traders Holdings Co Ltd is a holding company engaged in the provision of financial services. Through its subsidiaries, it offers foreign exchange and securities trading services. Its services comprise futures and options trading, spot trading, financial brokerage services, and online securities trading services, among others.
85GF Score
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