Daido Steel CoDAIDF +26.83%57 Operating Margin % is 8.73% as of Dec. 2025, which is 26% above its 10-year median of 6.92. GuruFocus rates DAIDF with a GF Score™ of 57/100 and a GF Value™ of $7.17 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 615 Steel companies, Daido Steel Co ranks better than 72.68% on this metric.
Daido Steel Co (OTCPK:DAIDF) 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.
Daido Steel Co Operating Margin % Related Terms
Daido Steel Co Operating Margin % Historical Data
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The historical data trend for Daido Steel 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.
DAIDF vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Daido Steel 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.
Daido Steel Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Daido Steel Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Daido Steel 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.
Daido Steel 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.
Daido Steel Co (DAIDF) has a Operating Margin % of 8.73% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Daido Steel Co and its competitors. This is 26% above median its historical median of 6.92. Over the past decade, Daido Steel Co's Operating Margin % has ranged from 2.44 to 8.64. According to the industry distribution chart, Daido Steel Co ranks #168 out of 615 companies in the Steel industry, placing it in the top 27.3%.
Is Daido Steel Co's Operating Margin % too high?
Daido Steel Co's current Operating Margin % of 8.73% is 26% above median its 10-year median of 6.92. Over the past 10 years, this metric has ranged from a low of 2.44 to a high of 8.64. The Steel industry median Operating Margin % is 2.99. Daido Steel Co's value of 8.73% is 192% above this industry median. Based on the distribution chart, Daido Steel Co ranks #168 out of 615 companies in the Steel industry, which is above the industry midpoint. Overall, Daido Steel Co has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Steel Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Daido Steel Co ranks #168 out of 615 companies for Operating Margin %. This puts Daido Steel Co in the upper half of its industry. The industry median Operating Margin % is 2.99. Daido Steel Co's value of 8.73% is 192% above this benchmark. Historically, Daido Steel Co's own Operating Margin % has ranged from 2.44 to 8.64 over the past decade. While the company's 10-year median is 6.92 vs. the industry median of 2.99, Daido Steel 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 615 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. Daido Steel Co's current Operating Margin % of 8.73% is 192% 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 Daido Steel Co and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daido Steel Co's current Operating Margin % is 8.73%, which is 26% above median its own 10-year median of 6.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Steel Co (DAIDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.17, compared to a current price of $11.70 — trading 63.2% above its estimated fair value. The current Operating Margin % is 8.73%, which is 26% above median its 10-year median of 6.92 and 192% above the Steel industry median of 2.99. Daido Steel Co's overall GF Score™ is 57/100 with 7 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 Daido Steel Co (DAIDF), the current Operating Margin % is 8.73% as of Dec. 2025. 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 Daido Steel Co (DAIDF) Overvalued in 2026?
Based on GuruFocus' analysis, Daido Steel Co stock appears to be overvalued.
The current stock price of $11.70 is trading 63.2% above its estimated GF Value™ of $7.17.
GuruFocus considers Daido Steel Co to be Significantly Overvalued.
Key valuation signals for DAIDF:
Operating Margin %: 8.73% (26% above median its 10-year median of 6.92)
GF Value™: $7.17 vs. price of $11.70 (63.2% above fair value)
Industry Position: 192% above the Steel median (#168 of 615)
No single metric tells the full story. See the DAIDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daido Steel Co Ltd is a Japan-based company that primarily operates through three segments. The special steel segment produces and distributes specialty steel for automotive parts, industrial machinery parts, electrical machinery parts, construction, and tool steel. The high-performance materials and magnetic materials segment produces and sells stainless steel, nickel-based alloys, electrical and electronic parts, magnetic material products, alloy powder, titanium products, and welding wire. The parts for automobile and industrial equipment segment is engaged in forging and casting for parts for automobiles, industrial machines, chemical equipment, and oil drilling rigs. The company generates majority of its revenue from the Japanese domestic market.
57GF Score
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