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Sekichu CoTSE:9976 +1.04%69 Operating Margin % is 1.27% as of Feb. 2026, which is 34% below its 10-year median of 1.91. GuruFocus rates TSE:9976 with a GF Score™ of 69/100 and a GF Value™ of 円1,197.54 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,124 Retail - Cyclical companies, Sekichu Co ranks worse than 61.65% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Sekichu Co's Operating Income for the
three
months ended in Feb. 2026 was 円102 Mil. Sekichu Co's Revenue for the
three
months ended in Feb. 2026 was 円8,054 Mil. Therefore, Sekichu Co's Operating Margin % for the quarter that ended in Feb. 2026 was 1.27%.
Warning Sign:
Sekichu Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6%.
The historical rank and industry rank for Sekichu Co's Operating Margin % or its related term are showing as below:
TSE:9976'
s Operating Margin % Range Over the Past 10 Years
Min: 0.96 Med: 1.91 Max: 3.04
Current: 2.15
TSE:9976's Operating Margin % is ranked worse than 61.65% of 1124
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs TSE:9976: 2.15
Sekichu Co's 5-Year Average Operating Margin % Growth Rate was -6.00% per year.
Sekichu Co's Operating Income for the
three
months ended in Feb. 2026 was 円102 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円692 Mil.
Sekichu Co (TSE:9976) 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.
Sekichu Co Operating Margin % Related Terms
Sekichu Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sekichu 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:9976 vs HD, LOW, FND: Operating Margin % Comparison
For the Home Improvement Retail subindustry, Sekichu 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.
Sekichu Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sekichu Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sekichu 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.
Sekichu Co's Operating Margin % for the fiscal year that ended in Feb. 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.
Sekichu Co (TSE:9976) has a Operating Margin % of 1.27% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sekichu Co and its competitors. This is 34% below median its historical median of 1.91. Over the past decade, Sekichu Co's Operating Margin % has ranged from 0.96 to 3.04. According to the industry distribution chart, Sekichu Co ranks #693 out of 1124 companies in the Retail - Cyclical industry, placing it in the top 61.7%.
Is Sekichu Co's Operating Margin % too high?
Sekichu Co's current Operating Margin % of 1.27% is 34% below median its 10-year median of 1.91. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 3.04. The Retail - Cyclical industry median Operating Margin % is 3.91. Sekichu Co's value of 1.27% is 67.5% below this industry median. Based on the distribution chart, Sekichu Co ranks #693 out of 1124 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Sekichu Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sekichu Co's Operating Margin % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Sekichu Co ranks #693 out of 1124 companies for Operating Margin %. This places Sekichu Co in the lower half of its industry. The industry median Operating Margin % is 3.91. Sekichu Co's value of 1.27% is 67.5% below this benchmark. Historically, Sekichu Co's own Operating Margin % has ranged from 0.96 to 3.04 over the past decade. While the company's 10-year median is 1.91 vs. the industry median of 3.91, Sekichu Co 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 a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,124 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. Sekichu Co's current Operating Margin % of 1.27% is 67.5% 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 Sekichu Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sekichu Co's current Operating Margin % is 1.27%, which is 34% below median its own 10-year median of 1.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sekichu Co stock overvalued right now?
Based on GuruFocus' analysis, Sekichu Co (TSE:9976) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,197.54, compared to a current price of 円1,073.00 — trading 10.4% below its estimated fair value. The current Operating Margin % is 1.27%, which is 34% below median its 10-year median of 1.91 and 67.5% below the Retail - Cyclical industry median of 3.91. Sekichu Co's overall GF Score™ is 69/100 with 3 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 Sekichu Co (TSE:9976), the current Operating Margin % is 1.27% 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 Sekichu Co (TSE:9976) Overvalued in 2026?
Based on GuruFocus' analysis, Sekichu Co stock appears to be undervalued.
The current stock price of 円1,073.00 is trading 10.4% below its estimated GF Value™ of 円1,197.54.
GuruFocus considers Sekichu Co to be Modestly Undervalued.
Key valuation signals for TSE:9976:
Operating Margin %: 1.27% (34% below median its 10-year median of 1.91)
GF Value™: 円1,197.54 vs. price of 円1,073.00 (10.4% below fair value)
Industry Position: 67.5% below the Retail - Cyclical median (#693 of 1124)
No single metric tells the full story. See the TSE:9976 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sekichu Co Ltd operates do-it-yourself stores, which provide wood, household items, housing materials, paints, gardening, plants, exteriors, and pet supplies. It also provides utensils, car articles, bicycles, and sports and leisure-time articles. The company operates in two segments, which include the Home Center Business handles a wide range of lifestyle-related products, including DIY supplies, household goods, car accessories, bicycles, leisure goods, and more. The Real Estate Leasing Business involves leasing real estate owned and managed by the company, as well as planning, constructing, and managing commercial facilities.
69GF Score
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