Japan TobaccoJAPAF 78 Net Margin % is 21.33% as of Mar. 2026, which is 31% above its 10-year median of 16.33. GuruFocus rates JAPAF with a GF Score™ of 78/100 and a GF Value™ of $33.10 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 48 Tobacco Products companies, Japan Tobacco ranks better than 64.58% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Japan Tobacco's Net Income for the
three
months ended in Mar. 2026 was $1,242 Mil. Japan Tobacco's Revenue for the
three
months ended in Mar. 2026 was $5,823 Mil. Therefore, Japan Tobacco's net margin for the quarter that ended in Mar. 2026 was 21.33%.
The historical rank and industry rank for Japan Tobacco's Net Margin % or its related term are showing as below:
JAPAF'
s Net Margin % Range Over the Past 10 Years
Min: 5.86 Med: 16.33 Max: 19.68
Current: 15.42
JAPAF's Net Margin % is ranked better than 64.58% of 48
companies
in the Tobacco Products industry
Industry Median: 7.245
vs JAPAF: 15.42
Japan Tobacco (OTCPK:JAPAF) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Japan Tobacco Net Margin % Related Terms
Japan Tobacco Net Margin % Historical Data
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The historical data trend for Japan Tobacco's Net 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.
For the Tobacco subindustry, Japan Tobacco's Net Margin %, along with its competitors' market caps and Net 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.
Japan Tobacco Net Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's Net Margin % distribution charts can be found below:
* The bar in red indicates where Japan Tobacco's Net Margin % falls into.
* 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.
Japan Tobacco (JAPAF) has a Net Margin % of 21.33% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Japan Tobacco and its competitors. This is 31% above median its historical median of 16.33. Over the past decade, Japan Tobacco's Net Margin % has ranged from 5.86 to 19.68. According to the industry distribution chart, Japan Tobacco ranks #17 out of 48 companies in the Tobacco Products industry, placing it in the top 35.4%.
Is Japan Tobacco's Net Margin % too high?
Japan Tobacco's current Net Margin % of 21.33% is 31% above median its 10-year median of 16.33. Over the past 10 years, this metric has ranged from a low of 5.86 to a high of 19.68. The Tobacco Products industry median Net Margin % is 7.25. Japan Tobacco's value of 21.33% is 194.4% above this industry median. Based on the distribution chart, Japan Tobacco ranks #17 out of 48 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Japan Tobacco has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's Net Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Japan Tobacco ranks #17 out of 48 companies for Net Margin %. This puts Japan Tobacco in the upper half of its industry. The industry median Net Margin % is 7.25. Japan Tobacco's value of 21.33% is 194.4% above this benchmark. Historically, Japan Tobacco's own Net Margin % has ranged from 5.86 to 19.68 over the past decade. While the company's 10-year median is 16.33 vs. the industry median of 7.25, Japan Tobacco 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 Net Margin % for a Tobacco Products company?
The median Net Margin % among Tobacco Products companies is 7.25, based on 48 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Japan Tobacco's current Net Margin % of 21.33% is 194.4% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Japan Tobacco and its competitors. For the Tobacco Products industry, the median Net Margin % is 7.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Tobacco's current Net Margin % is 21.33%, which is 31% above median its own 10-year median of 16.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $33.10, compared to a current price of $37.74 — trading 14% above its estimated fair value. The current Net Margin % is 21.33%, which is 31% above median its 10-year median of 16.33 and 194.4% above the Tobacco Products industry median of 7.25. Japan Tobacco's overall GF Score™ is 78/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Japan Tobacco (JAPAF), the current Net Margin % is 21.33% 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 Japan Tobacco (JAPAF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued.
The current stock price of $37.74 is trading 14% above its estimated GF Value™ of $33.10.
GuruFocus considers Japan Tobacco to be Modestly Overvalued.
Key valuation signals for JAPAF:
Net Margin %: 21.33% (31% above median its 10-year median of 16.33)
GF Value™: $33.10 vs. price of $37.74 (14% above fair value)
Industry Position: 194.4% above the Tobacco Products median (#17 of 48)
No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
78GF Score
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