Denka CoDENKF 56 Operating Margin % is 8.59% as of Mar. 2026, which is 6% above its 10-year median of 8.11. GuruFocus rates DENKF with a GF Score™ of 56/100 and a GF Value™ of $9.54. The stock has 11 warning signs investors should review. Among 1,585 Chemicals companies, Denka Co ranks better than 54.2% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Denka Co's Operating Income for the
three
months ended in Mar. 2026 was $51 Mil. Denka Co's Revenue for the
three
months ended in Mar. 2026 was $589 Mil. Therefore, Denka Co's Operating Margin % for the quarter that ended in Mar. 2026 was 8.59%.
Warning Sign:
Denka Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -15.4%.
The historical rank and industry rank for Denka Co's Operating Margin % or its related term are showing as below:
DENKF'
s Operating Margin % Range Over the Past 10 Years
Min: 3.44 Med: 8.11 Max: 10.43
Current: 6.83
DENKF's Operating Margin % is ranked better than 54.2% of 1585
companies
in the Chemicals industry
Industry Median: 6.02
vs DENKF: 6.83
Denka Co's 5-Year Average Operating Margin % Growth Rate was -15.40% per year.
Denka Co's Operating Income for the
three
months ended in Mar. 2026 was $51 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $171 Mil.
Denka Co (OTCPK:DENKF) 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.
Denka Co Operating Margin % Related Terms
Denka Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Denka 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.
For the Chemicals subindustry, Denka 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.
Denka Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Denka Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Denka 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.
Denka 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.
Denka Co (DENKF) has a Operating Margin % of 8.59% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Denka Co and its competitors. This is near median its historical median of 8.11. Over the past decade, Denka Co's Operating Margin % has ranged from 3.44 to 10.43. According to the industry distribution chart, Denka Co ranks #726 out of 1585 companies in the Chemicals industry, placing it in the top 45.8%.
Is Denka Co's Operating Margin % too high?
Denka Co's current Operating Margin % of 8.59% is near median its 10-year median of 8.11. Over the past 10 years, this metric has ranged from a low of 3.44 to a high of 10.43. The Chemicals industry median Operating Margin % is 6.02. Denka Co's value of 8.59% is 42.7% above this industry median. Based on the distribution chart, Denka Co ranks #726 out of 1585 companies in the Chemicals industry, which is above the industry midpoint. Overall, Denka Co has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Denka Co's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Denka Co ranks #726 out of 1585 companies for Operating Margin %. This puts Denka Co in the upper half of its industry. The industry median Operating Margin % is 6.02. Denka Co's value of 8.59% is 42.7% above this benchmark. Historically, Denka Co's own Operating Margin % has ranged from 3.44 to 10.43 over the past decade. While the company's 10-year median is 8.11 vs. the industry median of 6.02, Denka 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 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. Denka Co's current Operating Margin % of 8.59% is 42.7% 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 Denka Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denka Co's current Operating Margin % is 8.59%, which is near median its own 10-year median of 8.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denka Co stock overvalued right now?
Denka Co (DENKF) has a current Operating Margin % of 8.59%. The stock's GF Value™ is $9.54, compared to a current price of $28.00 — trading 193.5% above its estimated fair value. The current Operating Margin % is 8.59%, which is near median its 10-year median of 8.11 and 42.7% above the Chemicals industry median of 6.02. Denka Co's overall GF Score™ is 56/100 with 11 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 Denka Co (DENKF), the current Operating Margin % is 8.59% 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 Denka Co (DENKF) Overvalued in 2026?
Based on GuruFocus' analysis, Denka Co stock appears to be overvalued.
The current stock price of $28.00 is trading 193.5% above its estimated GF Value™ of $9.54.
Key valuation signals for DENKF:
Operating Margin %: 8.59% (near median its 10-year median of 8.11)
GF Value™: $9.54 vs. price of $28.00 (193.5% above fair value)
Industry Position: 42.7% above the Chemicals median (#726 of 1585)
No single metric tells the full story. See the DENKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denka Co Ltd manufactures and sells chemicals, plastics, and chemical-based products. The firm organizes itself into four segments based on product type. The elastomers and performance plastics segment, which generates more revenue than any other segment, sells rubber products used by the automotive industry and plastics used to manufacture electronics including televisions. The infrastructure and social solutions segment sells cement and fertilizer to the construction and building industries. The electronics and innovative products segment sells film, and resins used by the electronics industry. The life science and environment products segment sells housing materials including rain gutters, plastic food packaging materials, and industrial materials including electrical tape.
56GF Score
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