Mitsubishi Chemical Group (OTCPK:MTLHF) 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.
Mitsubishi Chemical Group Operating Margin % Related Terms
Mitsubishi Chemical Group 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.
Mitsubishi Chemical Group Operating Margin % Chart
MTLHF vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Mitsubishi Chemical Group'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.
Mitsubishi Chemical Group Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mitsubishi Chemical Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mitsubishi Chemical Group's Operating Margin % falls into.
Mitsubishi Chemical Group 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.
Mitsubishi Chemical Group'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.
Mitsubishi Chemical Group (MTLHF) has a Operating Margin % of -8.39% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Mitsubishi Chemical Group and its competitors. Over the past decade, Mitsubishi Chemical Group's Operating Margin % has ranged from 0.87 to 8.84. According to the industry distribution chart, Mitsubishi Chemical Group ranks #1191 out of 1584 companies in the Chemicals industry, placing it in the top 75.2%.
Is Mitsubishi Chemical Group's Operating Margin % too high?
Mitsubishi Chemical Group's current Operating Margin % is -8.39%. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 8.84. Based on the distribution chart, Mitsubishi Chemical Group ranks #1191 out of 1584 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Mitsubishi Chemical Group has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mitsubishi Chemical Group's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Mitsubishi Chemical Group ranks #1191 out of 1584 companies for Operating Margin %. This places Mitsubishi Chemical Group in the lower half of its industry. The industry median Operating Margin % is 6.03. Historically, Mitsubishi Chemical Group's own Operating Margin % has ranged from 0.87 to 8.84 over the past decade. 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. 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 Mitsubishi Chemical Group 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. Mitsubishi Chemical Group's current Operating Margin % is -8.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitsubishi Chemical Group stock overvalued right now?
Based on GuruFocus' analysis, Mitsubishi Chemical Group (MTLHF) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.49, compared to a current price of $6.26 — trading 39.4% above its estimated fair value. The current Operating Margin % is -8.39%. Mitsubishi Chemical Group's overall GF Score™ is 72/100 with 11 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 Mitsubishi Chemical Group (MTLHF), the current Operating Margin % is -8.39% 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 Mitsubishi Chemical Group (MTLHF) Overvalued in 2026?
Based on GuruFocus' analysis, Mitsubishi Chemical Group stock appears to be overvalued.
The current stock price of $6.26 is trading 39.4% above its estimated GF Value™ of $4.49.
GuruFocus considers Mitsubishi Chemical Group to be Significantly Overvalued.
Key valuation signals for MTLHF:
Operating Margin %: -8.39%
GF Value™: $4.49 vs. price of $6.26 (39.4% above fair value)
No single metric tells the full story. See the MTLHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitsubishi Chemical Group Corp is a holding company which manufactures and sells chemicals, plastics, and pharmaceuticals. It organizes itself into five segments. The Basic Materials & Polymers segment covers petrochemical substrates, polyolefins, basic chemicals, sustainable polymers, engineering plastics, and carbon. The Industrial Gas segment focuses on industrial gases. The MMA & Derivatives segment includes MMA, PMMA, coatings, additives, and fine chemicals. The Pharmacy segment is engaged in medicines, and the Specialty Materials segment handles advanced films and polymers, advanced solutions, and advanced composites. The Others segment includes businesses such as engineering, transportation, and warehousing. It generates the majority of its revenue from the Industrial gas segment.
72GF Score
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