Kobe SteelKBSTF -7.05%74 Operating Margin % is 5.38% as of Mar. 2026, which is 40% above its 10-year median of 3.85. GuruFocus rates KBSTF with a GF Score™ of 74/100 and a GF Value™ of $10.59 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 616 Steel companies, Kobe Steel ranks better than 64.12% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Kobe Steel's Operating Income for the
three
months ended in Mar. 2026 was $223 Mil. Kobe Steel's Revenue for the
three
months ended in Mar. 2026 was $4,150 Mil. Therefore, Kobe Steel's Operating Margin % for the quarter that ended in Mar. 2026 was 5.38%.
Good Sign:
Kobe Steel Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Kobe Steel's Operating Margin % or its related term are showing as below:
KBSTF'
s Operating Margin % Range Over the Past 10 Years
Min: 0.53 Med: 3.85 Max: 7.34
Current: 5.33
KBSTF's Operating Margin % is ranked better than 64.12% of 616
companies
in the Steel industry
Industry Median: 3
vs KBSTF: 5.33
Kobe Steel's 5-Year Average Operating Margin % Growth Rate was 23.50% per year.
Kobe Steel's Operating Income for the
three
months ended in Mar. 2026 was $223 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $856 Mil.
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.
Kobe Steel Operating Margin % Related Terms
Kobe Steel Operating Margin % Historical Data
* Premium members only.
The historical data trend for Kobe Steel'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.
KBSTF vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Kobe Steel'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.
Kobe Steel Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Kobe Steel's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kobe Steel'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.
Kobe Steel'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.
Kobe Steel (KBSTF) has a Operating Margin % of 5.38% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kobe Steel and its competitors. This is 40% above median its historical median of 3.85. Over the past decade, Kobe Steel's Operating Margin % has ranged from 0.53 to 7.34. According to the industry distribution chart, Kobe Steel ranks #221 out of 616 companies in the Steel industry, placing it in the top 35.9%.
Is Kobe Steel's Operating Margin % too high?
Kobe Steel's current Operating Margin % of 5.38% is 40% above median its 10-year median of 3.85. Over the past 10 years, this metric has ranged from a low of 0.53 to a high of 7.34. The Steel industry median Operating Margin % is 3.00. Kobe Steel's value of 5.38% is 79.3% above this industry median. Based on the distribution chart, Kobe Steel ranks #221 out of 616 companies in the Steel industry, which is above the industry midpoint. Overall, Kobe Steel has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kobe Steel's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Kobe Steel ranks #221 out of 616 companies for Operating Margin %. This puts Kobe Steel in the upper half of its industry. The industry median Operating Margin % is 3.00. Kobe Steel's value of 5.38% is 79.3% above this benchmark. Historically, Kobe Steel's own Operating Margin % has ranged from 0.53 to 7.34 over the past decade. While the company's 10-year median is 3.85 vs. the industry median of 3.00, Kobe Steel 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 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. Kobe Steel's current Operating Margin % of 5.38% is 79.3% 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 Kobe Steel and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kobe Steel's current Operating Margin % is 5.38%, which is 40% above median its own 10-year median of 3.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kobe Steel stock overvalued right now?
Based on GuruFocus' analysis, Kobe Steel (KBSTF) is currently considered Modestly Overvalued. The stock's GF Value™ is $10.59, compared to a current price of $12.32 — trading 16.3% above its estimated fair value. The current Operating Margin % is 5.38%, which is 40% above median its 10-year median of 3.85 and 79.3% above the Steel industry median of 3.00. Kobe Steel's overall GF Score™ is 74/100 with 3 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 Kobe Steel (KBSTF), the current Operating Margin % is 5.38% 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 Kobe Steel (KBSTF) Overvalued in 2026?
Based on GuruFocus' analysis, Kobe Steel stock appears to be overvalued.
The current stock price of $12.32 is trading 16.3% above its estimated GF Value™ of $10.59.
GuruFocus considers Kobe Steel to be Modestly Overvalued.
Key valuation signals for KBSTF:
Operating Margin %: 5.38% (40% above median its 10-year median of 3.85)
GF Value™: $10.59 vs. price of $12.32 (16.3% above fair value)
Industry Position: 79.3% above the Steel median (#221 of 616)
No single metric tells the full story. See the KBSTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kobe Steel Ltd engages in the manufacture, production, and sale of iron and steel. The company operates through seven segments. The Construction Machinery segment offers excavators, cranes, loaders, and workboats. Electric Power supplies electricity through group companies. Engineering handles plants for steel, petrochemicals, nuclear, water, and waste treatment, along with civil engineering and transport systems. Machinery provides compressors, engines, refrigeration, heat pumps, chemical and rubber machinery, and specialty materials. Materials include steel, aluminum, titanium, copper, and forged products. Steel & Aluminum delivers rolled products, plates, wires, and special steels, while Welding covers electrodes, flux, robots, power sources, and related services.
74GF Score
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