ShionogiFRA:SH0 +0.72%93 Operating Margin % is 12.97% as of Mar. 2026, which is 63% below its 10-year median of 35.08. GuruFocus rates FRA:SH0 with a GF Score™ of 93/100 and a GF Value™ of €15.06 (Fairly Valued). The stock has 2 warning signs investors should review. Among 955 Drug Manufacturers companies, Shionogi ranks better than 95.92% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Shionogi's Operating Income for the
three
months ended in Mar. 2026 was €98 Mil. Shionogi's Revenue for the
three
months ended in Mar. 2026 was €758 Mil. Therefore, Shionogi's Operating Margin % for the quarter that ended in Mar. 2026 was 12.97%.
Warning Sign:
Shionogi & Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for Shionogi's Operating Margin % or its related term are showing as below:
FRA:SH0'
s Operating Margin % Range Over the Past 10 Years
Min: 31.92 Med: 35.08 Max: 39.52
Current: 33.37
FRA:SH0's Operating Margin % is ranked better than 95.92% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs FRA:SH0: 33.37
Shionogi's 5-Year Average Operating Margin % Growth Rate was -1.70% per year.
Shionogi's Operating Income for the
three
months ended in Mar. 2026 was €98 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €942 Mil.
Shionogi (FRA:SH0) 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.
Shionogi Operating Margin % Related Terms
Shionogi Operating Margin % Historical Data
* Premium members only.
The historical data trend for Shionogi'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 Drug Manufacturers - Specialty & Generic subindustry, Shionogi'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.
Shionogi Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shionogi's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shionogi'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.
Shionogi'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.
Shionogi (FRA:SH0) has a Operating Margin % of 12.97% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shionogi and its competitors. This is 63% below median its historical median of 35.08. Over the past decade, Shionogi's Operating Margin % has ranged from 31.92 to 39.52. According to the industry distribution chart, Shionogi ranks #39 out of 955 companies in the Drug Manufacturers industry, placing it in the top 4.1%.
Is Shionogi's Operating Margin % too high?
Shionogi's current Operating Margin % of 12.97% is 63% below median its 10-year median of 35.08. Over the past 10 years, this metric has ranged from a low of 31.92 to a high of 39.52. The Drug Manufacturers industry median Operating Margin % is 7.45. Shionogi's value of 12.97% is 74.1% above this industry median. Based on the distribution chart, Shionogi ranks #39 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Shionogi has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shionogi's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Shionogi ranks #39 out of 955 companies for Operating Margin %. This places Shionogi in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Shionogi's value of 12.97% is 74.1% above this benchmark. Historically, Shionogi's own Operating Margin % has ranged from 31.92 to 39.52 over the past decade. While the company's 10-year median is 35.08 vs. the industry median of 7.45, Shionogi 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Shionogi's current Operating Margin % of 12.97% is 74.1% 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 Shionogi and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shionogi's current Operating Margin % is 12.97%, which is 63% below median its own 10-year median of 35.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shionogi stock overvalued right now?
Based on GuruFocus' analysis, Shionogi (FRA:SH0) is currently considered Fairly Valued. The stock's GF Value™ is €15.06, compared to a current price of €14.63 — trading 2.9% below its estimated fair value. The current Operating Margin % is 12.97%, which is 63% below median its 10-year median of 35.08 and 74.1% above the Drug Manufacturers industry median of 7.45. Shionogi's overall GF Score™ is 93/100 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 Shionogi (FRA:SH0), the current Operating Margin % is 12.97% 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 Shionogi (FRA:SH0) Overvalued in 2026?
Based on GuruFocus' analysis, Shionogi stock appears to be undervalued.
The current stock price of €14.63 is trading 2.9% below its estimated GF Value™ of €15.06.
GuruFocus considers Shionogi to be Fairly Valued.
Key valuation signals for FRA:SH0:
Operating Margin %: 12.97% (63% below median its 10-year median of 35.08)
GF Value™: €15.06 vs. price of €14.63 (2.9% below fair value)
Industry Position: 74.1% above the Drug Manufacturers median (#39 of 955)
No single metric tells the full story. See the FRA:SH0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shionogi & Co Ltd is a specialty and generic drug manufacturing company. The company focuses on the manufacturing and distribution of pharmaceuticals, diagnostic reagents, and medical devices. The company engages in manufacturing, formulation, packaging, and analysis as part of its commercialization research that spans late-stage drug discovery through commercial production. It provides products and services in Japan, Europe, North America, and other regions.
93GF Score
Get the complete analysis for FRA:SH0
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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