Nishio Holdings CoTSE:9699 +1.03%82 Operating Margin % is 9.80% as of Mar. 2026, which is 8% above its 10-year median of 9.04. GuruFocus rates TSE:9699 with a GF Score™ of 82/100 and a GF Value™ of 円4,972.68 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,070 Business Services companies, Nishio Holdings Co ranks better than 61.96% on this metric.
Nishio Holdings Co (TSE:9699) 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.
Nishio Holdings Co Operating Margin % Related Terms
Nishio Holdings Co Operating Margin % Historical Data
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The historical data trend for Nishio 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:9699 vs URI, SUNB, AER: Operating Margin % Comparison
For the Rental & Leasing Services subindustry, Nishio 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.
Nishio Holdings Co Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Nishio Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nishio 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.
Nishio Holdings Co's Operating Margin % for the fiscal year that ended in Sep. 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.
Nishio Holdings Co (TSE:9699) has a Operating Margin % of 9.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nishio Holdings Co and its competitors. This is near median its historical median of 9.04. Over the past decade, Nishio Holdings Co's Operating Margin % has ranged from 7.52 to 10.81. According to the industry distribution chart, Nishio Holdings Co ranks #407 out of 1070 companies in the Business Services industry, placing it in the top 38%.
Is Nishio Holdings Co's Operating Margin % too high?
Nishio Holdings Co's current Operating Margin % of 9.80% is near median its 10-year median of 9.04. Over the past 10 years, this metric has ranged from a low of 7.52 to a high of 10.81. The Business Services industry median Operating Margin % is 6.33. Nishio Holdings Co's value of 9.80% is 54.8% above this industry median. Based on the distribution chart, Nishio Holdings Co ranks #407 out of 1070 companies in the Business Services industry, which is above the industry midpoint. Overall, Nishio Holdings Co has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nishio Holdings Co's Operating Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Nishio Holdings Co ranks #407 out of 1070 companies for Operating Margin %. This puts Nishio Holdings Co in the upper half of its industry. The industry median Operating Margin % is 6.33. Nishio Holdings Co's value of 9.80% is 54.8% above this benchmark. Historically, Nishio Holdings Co's own Operating Margin % has ranged from 7.52 to 10.81 over the past decade. While the company's 10-year median is 9.04 vs. the industry median of 6.33, Nishio 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 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. Nishio Holdings Co's current Operating Margin % of 9.80% is 54.8% 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 Nishio Holdings 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. Nishio Holdings Co's current Operating Margin % is 9.80%, which is near median its own 10-year median of 9.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nishio Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Nishio Holdings Co (TSE:9699) is currently considered Modestly Undervalued. The stock's GF Value™ is 円4,972.68, compared to a current price of 円3,920.00 — trading 21.2% below its estimated fair value. The current Operating Margin % is 9.80%, which is near median its 10-year median of 9.04 and 54.8% above the Business Services industry median of 6.33. Nishio Holdings Co's overall GF Score™ is 82/100 with 1 warning sign 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 Nishio Holdings Co (TSE:9699), the current Operating Margin % is 9.80% 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 Nishio Holdings Co (TSE:9699) Overvalued in 2026?
Based on GuruFocus' analysis, Nishio Holdings Co stock appears to be undervalued.
The current stock price of 円3,920.00 is trading 21.2% below its estimated GF Value™ of 円4,972.68.
GuruFocus considers Nishio Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:9699:
Operating Margin %: 9.80% (near median its 10-year median of 9.04)
GF Value™: 円4,972.68 vs. price of 円3,920.00 (21.2% below fair value)
Industry Position: 54.8% above the Business Services median (#407 of 1070)
No single metric tells the full story. See the TSE:9699 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nishio Holdings Co Ltd is a provider of rental construction and industrial machinery. The company offers rental solutions for construction and industrial machinery, mounting and tunnelling machines for mining operations, and water purification and recycling equipment. The company, through its subsidiaries, also designs, manufactures, and repairs tunnelling machines and other special vehicles, such as special transfer locomotives and battery-driven vehicles at construction sites. The company operates in Asia.
82GF Score
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