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Lotte Chemical PakistanKAR:LOTCHEM -0.58%76 Operating Margin % is 8.60% as of Jun. 2026, which is 20% above its 10-year median of 7.19. GuruFocus rates KAR:LOTCHEM with a GF Score™ of 76/100 and a GF Value™ of ₨20.34 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,581 Chemicals companies, Lotte Chemical Pakistan ranks worse than 51.61% on this metric.
Lotte Chemical Pakistan (KAR:LOTCHEM) 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.
Lotte Chemical Pakistan Operating Margin % Related Terms
Lotte Chemical Pakistan Operating Margin % Historical Data
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The historical data trend for Lotte Chemical Pakistan'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.
KAR:LOTCHEM vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Lotte Chemical Pakistan'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.
Lotte Chemical Pakistan Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Lotte Chemical Pakistan's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lotte Chemical Pakistan's Operating Margin % falls into.
Lotte Chemical Pakistan 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.
Lotte Chemical Pakistan's Operating Margin % for the fiscal year that ended in Dec. 2025 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.
Lotte Chemical Pakistan (KAR:LOTCHEM) has a Operating Margin % of 8.60% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lotte Chemical Pakistan and its competitors. This is 20% above median its historical median of 7.19. Over the past decade, Lotte Chemical Pakistan's Operating Margin % has ranged from 0.96 to 15.87. According to the industry distribution chart, Lotte Chemical Pakistan ranks #816 out of 1581 companies in the Chemicals industry, placing it in the top 51.6%.
Is Lotte Chemical Pakistan's Operating Margin % too high?
Lotte Chemical Pakistan's current Operating Margin % of 8.60% is 20% above median its 10-year median of 7.19. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 15.87. The Chemicals industry median Operating Margin % is 6.31. Lotte Chemical Pakistan's value of 8.60% is 36.3% above this industry median. Based on the distribution chart, Lotte Chemical Pakistan ranks #816 out of 1581 companies in the Chemicals industry, which is below the industry midpoint. Overall, Lotte Chemical Pakistan has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lotte Chemical Pakistan's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Lotte Chemical Pakistan ranks #816 out of 1581 companies for Operating Margin %. This places Lotte Chemical Pakistan in the lower half of its industry. The industry median Operating Margin % is 6.31. Lotte Chemical Pakistan's value of 8.60% is 36.3% above this benchmark. Historically, Lotte Chemical Pakistan's own Operating Margin % has ranged from 0.96 to 15.87 over the past decade. While the company's 10-year median is 7.19 vs. the industry median of 6.31, Lotte Chemical Pakistan 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 6.31, based on 1,581 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. Lotte Chemical Pakistan's current Operating Margin % of 8.60% is 36.3% 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 Lotte Chemical Pakistan and its competitors. For the Chemicals industry, the median Operating Margin % is 6.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lotte Chemical Pakistan's current Operating Margin % is 8.60%, which is 20% above median its own 10-year median of 7.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lotte Chemical Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Lotte Chemical Pakistan (KAR:LOTCHEM) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨20.34, compared to a current price of ₨27.51 — trading 35.3% above its estimated fair value. The current Operating Margin % is 8.60%, which is 20% above median its 10-year median of 7.19 and 36.3% above the Chemicals industry median of 6.31. Lotte Chemical Pakistan's overall GF Score™ is 76/100 with 5 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 Lotte Chemical Pakistan (KAR:LOTCHEM), the current Operating Margin % is 8.60% as of Jun. 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 Lotte Chemical Pakistan (KAR:LOTCHEM) Overvalued in 2026?
Based on GuruFocus' analysis, Lotte Chemical Pakistan stock appears to be overvalued.
The current stock price of ₨27.51 is trading 35.3% above its estimated GF Value™ of ₨20.34.
GuruFocus considers Lotte Chemical Pakistan to be Significantly Overvalued.
Key valuation signals for KAR:LOTCHEM:
Operating Margin %: 8.60% (20% above median its 10-year median of 7.19)
GF Value™: ₨20.34 vs. price of ₨27.51 (35.3% above fair value)
Industry Position: 36.3% above the Chemicals median (#816 of 1581)
No single metric tells the full story. See the KAR:LOTCHEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lotte Chemical Pakistan Ltd is engaged in the manufacture and sale of Purified Terephthalic Acid (PTA). PTA is a key raw material used in the production of polyester fiber, polyester filament yarn, polyester film, and polyethylene terephthalate (PET).
76GF Score
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