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Nagase BrothersTSE:9733 +0.83%83 Operating Margin % is 6.57% as of Mar. 2026, which is 35% below its 10-year median of 10.08. GuruFocus rates TSE:9733 with a GF Score™ of 83/100 and a GF Value™ of 円2,334.19 (Fairly Valued). The stock has 5 warning signs investors should review. Among 256 Education companies, Nagase Brothers ranks worse than 51.56% on this metric.
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.
Nagase Brothers Operating Margin % Related Terms
Nagase Brothers Operating Margin % Historical Data
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The historical data trend for Nagase Brothers'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:9733 vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, Nagase Brothers'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.
Nagase Brothers Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Nagase Brothers's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nagase Brothers'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.
Nagase Brothers'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.
Nagase Brothers (TSE:9733) has a Operating Margin % of 6.57% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nagase Brothers and its competitors. This is 35% below median its historical median of 10.08. Over the past decade, Nagase Brothers' Operating Margin % has ranged from 5.84 to 12.39. According to the industry distribution chart, Nagase Brothers ranks #132 out of 256 companies in the Education industry, placing it in the top 51.6%.
Is Nagase Brothers' Operating Margin % too high?
Nagase Brothers' current Operating Margin % of 6.57% is 35% below median its 10-year median of 10.08. Over the past 10 years, this metric has ranged from a low of 5.84 to a high of 12.39. The Education industry median Operating Margin % is 9.85. Nagase Brothers' value of 6.57% is 33.3% below this industry median. Based on the distribution chart, Nagase Brothers ranks #132 out of 256 companies in the Education industry, which is below the industry midpoint. Overall, Nagase Brothers has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nagase Brothers' Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Nagase Brothers ranks #132 out of 256 companies for Operating Margin %. This places Nagase Brothers in the lower half of its industry. The industry median Operating Margin % is 9.85. Nagase Brothers' value of 6.57% is 33.3% below this benchmark. Historically, Nagase Brothers' own Operating Margin % has ranged from 5.84 to 12.39 over the past decade. While the company's 10-year median is 10.08 vs. the industry median of 9.85, Nagase Brothers 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 an Education company?
The median Operating Margin % among Education companies is 9.85, based on 256 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. Nagase Brothers's current Operating Margin % of 6.57% is 33.3% 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 Nagase Brothers and its competitors. For the Education industry, the median Operating Margin % is 9.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nagase Brothers's current Operating Margin % is 6.57%, which is 35% below median its own 10-year median of 10.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nagase Brothers stock overvalued right now?
Based on GuruFocus' analysis, Nagase Brothers (TSE:9733) is currently considered Fairly Valued. The stock's GF Value™ is 円2,334.19, compared to a current price of 円2,303.00 — trading 1.3% below its estimated fair value. The current Operating Margin % is 6.57%, which is 35% below median its 10-year median of 10.08 and 33.3% below the Education industry median of 9.85. Nagase Brothers' overall GF Score™ is 83/100 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 Nagase Brothers (TSE:9733), the current Operating Margin % is 6.57% 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 Nagase Brothers (TSE:9733) Overvalued in 2026?
Based on GuruFocus' analysis, Nagase Brothers stock appears to be undervalued.
The current stock price of 円2,303.00 is trading 1.3% below its estimated GF Value™ of 円2,334.19.
GuruFocus considers Nagase Brothers to be Fairly Valued.
Key valuation signals for TSE:9733:
Operating Margin %: 6.57% (35% below median its 10-year median of 10.08)
GF Value™: 円2,334.19 vs. price of 円2,303.00 (1.3% below fair value)
Industry Position: 33.3% below the Education median (#132 of 256)
No single metric tells the full story. See the TSE:9733 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nagase Brothers Inc operates cram schools. It offers educational services for elementary, junior high, and high school students. It also has business schools, elementary schools, and swimming schools; and offers entrance examination services, as well as publishes reference books.
83GF Score
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