Takeda Pharmaceutical CoMEX:TAK N 67 Operating Margin % is 3.84% as of Mar. 2026, which is 63% below its 10-year median of 10.25. GuruFocus rates MEX:TAK N with a GF Score™ of 67/100 and a GF Value™ of MXN289.17. The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Takeda Pharmaceutical Co ranks better than 56.02% on this metric.
Takeda Pharmaceutical Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.5%.
The historical rank and industry rank for Takeda Pharmaceutical Co's Operating Margin % or its related term are showing as below:
MEX:TAK N'
s Operating Margin % Range Over the Past 10 Years
Min: 5.66 Med: 10.25 Max: 15.3
Current: 10.31
MEX:TAK N's Operating Margin % is ranked better than 56.02% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs MEX:TAK N: 10.31
Takeda Pharmaceutical Co (MEX:TAK N) 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.
Takeda Pharmaceutical Co Operating Margin % Related Terms
Takeda Pharmaceutical Co Operating Margin % Historical Data
* 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.
MEX:TAK N vs ZTS, UTHR: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Takeda Pharmaceutical 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.
Takeda Pharmaceutical Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Takeda Pharmaceutical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Takeda Pharmaceutical Co's Operating Margin % falls into.
Takeda Pharmaceutical Co 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.
Takeda Pharmaceutical 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.
Takeda Pharmaceutical Co (MEX:TAK N) has a Operating Margin % of 3.84% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Takeda Pharmaceutical Co and its competitors. This is 63% below median its historical median of 10.25. Over the past decade, Takeda Pharmaceutical Co's Operating Margin % has ranged from 5.66 to 15.30. According to the industry distribution chart, Takeda Pharmaceutical Co ranks #420 out of 955 companies in the Drug Manufacturers industry, placing it in the top 44%.
Is Takeda Pharmaceutical Co's Operating Margin % too high?
Takeda Pharmaceutical Co's current Operating Margin % of 3.84% is 63% below median its 10-year median of 10.25. Over the past 10 years, this metric has ranged from a low of 5.66 to a high of 15.30. The Drug Manufacturers industry median Operating Margin % is 7.45. Takeda Pharmaceutical Co's value of 3.84% is 48.5% below this industry median. Based on the distribution chart, Takeda Pharmaceutical Co ranks #420 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Takeda Pharmaceutical Co has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Takeda Pharmaceutical Co's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Takeda Pharmaceutical Co ranks #420 out of 955 companies for Operating Margin %. This puts Takeda Pharmaceutical Co in the upper half of its industry. The industry median Operating Margin % is 7.45. Takeda Pharmaceutical Co's value of 3.84% is 48.5% below this benchmark. Historically, Takeda Pharmaceutical Co's own Operating Margin % has ranged from 5.66 to 15.30 over the past decade. While the company's 10-year median is 10.25 vs. the industry median of 7.45, Takeda Pharmaceutical Co has consistently been below 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. Takeda Pharmaceutical Co's current Operating Margin % of 3.84% is 48.5% below 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 Takeda Pharmaceutical Co 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. Takeda Pharmaceutical Co's current Operating Margin % is 3.84%, which is 63% below median its own 10-year median of 10.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Takeda Pharmaceutical Co stock overvalued right now?
Takeda Pharmaceutical Co (MEX:TAK N) has a current Operating Margin % of 3.84%. The stock's GF Value™ is MXN289.17, compared to a current price of MXN320.00 — trading 10.7% above its estimated fair value. The current Operating Margin % is 3.84%, which is 63% below median its 10-year median of 10.25 and 48.5% below the Drug Manufacturers industry median of 7.45. Takeda Pharmaceutical Co's overall GF Score™ is 67/100 with 6 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 Takeda Pharmaceutical Co (MEX:TAK N), the current Operating Margin % is 3.84% 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 Takeda Pharmaceutical Co (MEX:TAK N) Overvalued in 2026?
Based on GuruFocus' analysis, Takeda Pharmaceutical Co stock appears to be overvalued.
The current stock price of MXN320.00 is trading 10.7% above its estimated GF Value™ of MXN289.17.
Key valuation signals for MEX:TAK N:
Operating Margin %: 3.84% (63% below median its 10-year median of 10.25)
GF Value™: MXN289.17 vs. price of MXN320.00 (10.7% above fair value)
Industry Position: 48.5% below the Drug Manufacturers median (#420 of 955)
No single metric tells the full story. See the MEX:TAK N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Takeda Pharmaceutical is Japan's largest pharmaceutical company, with revenue of JPY 4.5 trillion in fiscal 2025. The company's five core therapeutic areas are oncology, gastroenterology, neuroscience, rare diseases, and plasma-derived therapies, which account for more than 80% of revenue. Its geographic footprint is well diversified, with about 50% from the US, 10% from Japan, 25% from Europe, and 15% from Canada.
67GF Score
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