Nippon Kayaku CoFRA:NP7 -0.89%84 Operating Margin % is 9.35% as of Dec. 2025, which is 10% below its 10-year median of 10.41. GuruFocus rates FRA:NP7 with a GF Score™ of 84/100 and a GF Value™ of €9.08 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,584 Chemicals companies, Nippon Kayaku Co ranks better than 65.03% on this metric.
Nippon Kayaku Co (FRA:NP7) 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.
Nippon Kayaku Co Operating Margin % Related Terms
Nippon Kayaku Co Operating Margin % Historical Data
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The historical data trend for Nippon Kayaku 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, Nippon Kayaku 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.
Nippon Kayaku Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Kayaku Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Kayaku 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.
Nippon Kayaku 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.
Nippon Kayaku Co (FRA:NP7) has a Operating Margin % of 9.35% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Kayaku Co and its competitors. This is 10% below median its historical median of 10.41. Over the past decade, Nippon Kayaku Co's Operating Margin % has ranged from 3.64 to 13.47. According to the industry distribution chart, Nippon Kayaku Co ranks #554 out of 1584 companies in the Chemicals industry, placing it in the top 35%.
Is Nippon Kayaku Co's Operating Margin % too high?
Nippon Kayaku Co's current Operating Margin % of 9.35% is 10% below median its 10-year median of 10.41. Over the past 10 years, this metric has ranged from a low of 3.64 to a high of 13.47. The Chemicals industry median Operating Margin % is 6.03. Nippon Kayaku Co's value of 9.35% is 55.2% above this industry median. Based on the distribution chart, Nippon Kayaku Co ranks #554 out of 1584 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Kayaku Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Kayaku Co's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Nippon Kayaku Co ranks #554 out of 1584 companies for Operating Margin %. This puts Nippon Kayaku Co in the upper half of its industry. The industry median Operating Margin % is 6.03. Nippon Kayaku Co's value of 9.35% is 55.2% above this benchmark. Historically, Nippon Kayaku Co's own Operating Margin % has ranged from 3.64 to 13.47 over the past decade. While the company's 10-year median is 10.41 vs. the industry median of 6.03, Nippon Kayaku 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 6.03, based on 1,584 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. Nippon Kayaku Co's current Operating Margin % of 9.35% is 55.2% 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 Nippon Kayaku Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Kayaku Co's current Operating Margin % is 9.35%, which is 10% below median its own 10-year median of 10.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kayaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Kayaku Co (FRA:NP7) is currently considered Modestly Overvalued. The stock's GF Value™ is €9.08, compared to a current price of €11.10 — trading 22.2% above its estimated fair value. The current Operating Margin % is 9.35%, which is 10% below median its 10-year median of 10.41 and 55.2% above the Chemicals industry median of 6.03. Nippon Kayaku Co's overall GF Score™ is 84/100 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 Nippon Kayaku Co (FRA:NP7), the current Operating Margin % is 9.35% 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 Nippon Kayaku Co (FRA:NP7) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Kayaku Co stock appears to be overvalued.
The current stock price of €11.10 is trading 22.2% above its estimated GF Value™ of €9.08.
GuruFocus considers Nippon Kayaku Co to be Modestly Overvalued.
Key valuation signals for FRA:NP7:
Operating Margin %: 9.35% (10% below median its 10-year median of 10.41)
GF Value™: €9.08 vs. price of €11.10 (22.2% above fair value)
Industry Position: 55.2% above the Chemicals median (#554 of 1584)
No single metric tells the full story. See the FRA:NP7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
84GF Score
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