The Japan Steel WorksFRA:J9R -1.09%81 Operating Margin % is 10.56% as of Mar. 2026, which is 33% above its 10-year median of 7.92. GuruFocus rates FRA:J9R with a GF Score™ of 81/100 and a GF Value™ of €34.37 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 3,038 Industrial Products companies, The Japan Steel Works ranks better than 62.64% on this metric.
The Japan Steel Works (FRA:J9R) 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.
The Japan Steel Works Operating Margin % Related Terms
The Japan Steel Works Operating Margin % Historical Data
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The historical data trend for The Japan Steel Works'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.
FRA:J9R vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, The Japan Steel Works'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.
The Japan Steel Works Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Japan Steel Works's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Japan Steel Works's Operating Margin % falls into.
The Japan Steel Works Operating Margin % Calculation
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.
The Japan Steel Works'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.
The Japan Steel Works (FRA:J9R) has a Operating Margin % of 10.56% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Japan Steel Works and its competitors. This is 33% above median its historical median of 7.92. Over the past decade, The Japan Steel Works' Operating Margin % has ranged from 5.17 to 11.04. According to the industry distribution chart, The Japan Steel Works ranks #1135 out of 3038 companies in the Industrial Products industry, placing it in the top 37.4%.
Is The Japan Steel Works' Operating Margin % too high?
The Japan Steel Works' current Operating Margin % of 10.56% is 33% above median its 10-year median of 7.92. Over the past 10 years, this metric has ranged from a low of 5.17 to a high of 11.04. The Industrial Products industry median Operating Margin % is 6.53. The Japan Steel Works' value of 10.56% is 61.7% above this industry median. Based on the distribution chart, The Japan Steel Works ranks #1135 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, The Japan Steel Works has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Japan Steel Works' Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, The Japan Steel Works ranks #1135 out of 3038 companies for Operating Margin %. This puts The Japan Steel Works in the upper half of its industry. The industry median Operating Margin % is 6.53. The Japan Steel Works' value of 10.56% is 61.7% above this benchmark. Historically, The Japan Steel Works' own Operating Margin % has ranged from 5.17 to 11.04 over the past decade. While the company's 10-year median is 7.92 vs. the industry median of 6.53, The Japan Steel Works 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. The Japan Steel Works's current Operating Margin % of 10.56% is 61.7% 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 The Japan Steel Works and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Japan Steel Works's current Operating Margin % is 10.56%, which is 33% above median its own 10-year median of 7.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Japan Steel Works stock overvalued right now?
Based on GuruFocus' analysis, The Japan Steel Works (FRA:J9R) is currently considered Modestly Overvalued. The stock's GF Value™ is €34.37, compared to a current price of €42.70 — trading 24.2% above its estimated fair value. The current Operating Margin % is 10.56%, which is 33% above median its 10-year median of 7.92 and 61.7% above the Industrial Products industry median of 6.53. The Japan Steel Works' overall GF Score™ is 81/100 with 2 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 The Japan Steel Works (FRA:J9R), the current Operating Margin % is 10.56% 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 The Japan Steel Works (FRA:J9R) Overvalued in 2026?
Based on GuruFocus' analysis, The Japan Steel Works stock appears to be overvalued.
The current stock price of €42.70 is trading 24.2% above its estimated GF Value™ of €34.37.
GuruFocus considers The Japan Steel Works to be Modestly Overvalued.
Key valuation signals for FRA:J9R:
Operating Margin %: 10.56% (33% above median its 10-year median of 7.92)
GF Value™: €34.37 vs. price of €42.70 (24.2% above fair value)
Industry Position: 61.7% above the Industrial Products median (#1135 of 3038)
No single metric tells the full story. See the FRA:J9R stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Japan Steel Works Ltd provides industrial machinery as well as materials and engineering solutions in Japan and internationally. The company operates through two segments. The Industrial Machinery segment provides resin manufacturing and processing machinery, molding machines, defense-related equipment, and other industrial machinery. The Materials and Engineering segment covers raw material products and engineering operations. The Other segment includes the film deposition business, crystal business, and related activities. It generates the majority of its revenue from the Industrial machinery business segment.
81GF Score
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