Taiyo Kagaku CoNGO:2902 +0.58%76 Operating Margin % is 13.12% as of Mar. 2026, which is 20% above its 10-year median of 10.96. GuruFocus rates NGO:2902 with a GF Score™ of 76/100 and a GF Value™ of 円1,866.26 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,574 Chemicals companies, Taiyo Kagaku Co ranks better than 79.42% on this metric.
Taiyo Kagaku Co (NGO:2902) 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.
Taiyo Kagaku Co Operating Margin % Related Terms
Taiyo Kagaku Co Operating Margin % Historical Data
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The historical data trend for Taiyo Kagaku Co'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.
NGO:2902 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Taiyo Kagaku 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.
Taiyo Kagaku Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Taiyo Kagaku Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taiyo Kagaku Co'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.
Taiyo Kagaku 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.
Taiyo Kagaku Co (NGO:2902) has a Operating Margin % of 13.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Taiyo Kagaku Co and its competitors. This is 20% above median its historical median of 10.96. Over the past decade, Taiyo Kagaku Co's Operating Margin % has ranged from 8.72 to 13.49. According to the industry distribution chart, Taiyo Kagaku Co ranks #324 out of 1574 companies in the Chemicals industry, placing it in the top 20.6%.
Is Taiyo Kagaku Co's Operating Margin % too high?
Taiyo Kagaku Co's current Operating Margin % of 13.12% is 20% above median its 10-year median of 10.96. Over the past 10 years, this metric has ranged from a low of 8.72 to a high of 13.49. The Chemicals industry median Operating Margin % is 6.02. Taiyo Kagaku Co's value of 13.12% is 117.9% above this industry median. Based on the distribution chart, Taiyo Kagaku Co ranks #324 out of 1574 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Taiyo Kagaku Co has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiyo Kagaku Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Taiyo Kagaku Co ranks #324 out of 1574 companies for Operating Margin %. This places Taiyo Kagaku Co in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.02. Taiyo Kagaku Co's value of 13.12% is 117.9% above this benchmark. Historically, Taiyo Kagaku Co's own Operating Margin % has ranged from 8.72 to 13.49 over the past decade. While the company's 10-year median is 10.96 vs. the industry median of 6.02, Taiyo Kagaku Co 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 6.02, based on 1,574 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. Taiyo Kagaku Co's current Operating Margin % of 13.12% is 117.9% 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 Taiyo Kagaku Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiyo Kagaku Co's current Operating Margin % is 13.12%, which is 20% above median its own 10-year median of 10.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiyo Kagaku Co stock overvalued right now?
Based on GuruFocus' analysis, Taiyo Kagaku Co (NGO:2902) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,866.26, compared to a current price of 円2,796.00 — trading 49.8% above its estimated fair value. The current Operating Margin % is 13.12%, which is 20% above median its 10-year median of 10.96 and 117.9% above the Chemicals industry median of 6.02. Taiyo Kagaku Co's overall GF Score™ is 76/100 with 1 warning sign 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 Taiyo Kagaku Co (NGO:2902), the current Operating Margin % is 13.12% 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 Taiyo Kagaku Co (NGO:2902) Overvalued in 2026?
Based on GuruFocus' analysis, Taiyo Kagaku Co stock appears to be overvalued.
The current stock price of 円2,796.00 is trading 49.8% above its estimated GF Value™ of 円1,866.26.
GuruFocus considers Taiyo Kagaku Co to be Significantly Overvalued.
Key valuation signals for NGO:2902:
Operating Margin %: 13.12% (20% above median its 10-year median of 10.96)
GF Value™: 円1,866.26 vs. price of 円2,796.00 (49.8% above fair value)
Industry Position: 117.9% above the Chemicals median (#324 of 1574)
No single metric tells the full story. See the NGO:2902 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiyo Kagaku Co Ltd is based in Japan. The company has three reportable segments: the Nutrition Business, the Interface Solutions Business, and the Natural Ingredients Business. The Nutrition Business manufactures and sells functional food ingredients such as catechin (green tea extract), theanine (a functional amino acid), and water-soluble dietary fiber, as well as mineral and vitamin preparations. The Interface Solutions Business manufactures and sells quality improvers such as emulsifiers. The Natural Ingredients Business manufactures and sells food ingredients such as egg products, protein ingredients, ingredients for instant foods, and processed agricultural products, as well as quality improvers and stabilizers.
76GF Score
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