UpconNGO:5075 -1.69%66 Operating Margin % is 22.22% as of Jan. 2026, which is 21% above its 10-year median of 18.42. GuruFocus rates NGO:5075 with a GF Score™ of 66/100 and a GF Value™ of 円738.20 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,767 Construction companies, Upcon ranks better than 95.64% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Upcon's Operating Income for the
six
months ended in Jan. 2026 was 円159 Mil. Upcon's Revenue for the
six
months ended in Jan. 2026 was 円714 Mil. Therefore, Upcon's Operating Margin % for the quarter that ended in Jan. 2026 was 22.22%.
Good Sign:
Upcon Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Upcon's Operating Margin % or its related term are showing as below:
NGO:5075'
s Operating Margin % Range Over the Past 10 Years
Min: 5.24 Med: 18.42 Max: 30.31
Current: 30.31
NGO:5075's Operating Margin % is ranked better than 95.64% of 1767
companies
in the Construction industry
Industry Median: 5.89
vs NGO:5075: 30.31
Upcon's 5-Year Average Operating Margin % Growth Rate was 11.90% per year.
Upcon's Operating Income for the
six
months ended in Jan. 2026 was 円159 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2026 was 円421 Mil.
Upcon (NGO:5075) 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.
Upcon Operating Margin % Related Terms
Upcon Operating Margin % Historical Data
* Premium members only.
The historical data trend for Upcon'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:5075 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Upcon'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.
Upcon Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Upcon's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Upcon'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.
Upcon's Operating Margin % for the fiscal year that ended in Jan. 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.
Upcon (NGO:5075) has a Operating Margin % of 22.22% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Upcon and its competitors. This is 21% above median its historical median of 18.42. Over the past decade, Upcon's Operating Margin % has ranged from 5.24 to 30.31. According to the industry distribution chart, Upcon ranks #77 out of 1767 companies in the Construction industry, placing it in the top 4.4%.
Is Upcon's Operating Margin % too high?
Upcon's current Operating Margin % of 22.22% is 21% above median its 10-year median of 18.42. Over the past 10 years, this metric has ranged from a low of 5.24 to a high of 30.31. The Construction industry median Operating Margin % is 5.89. Upcon's value of 22.22% is 277.2% above this industry median. Based on the distribution chart, Upcon ranks #77 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Upcon has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Upcon's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Upcon ranks #77 out of 1767 companies for Operating Margin %. This places Upcon in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Upcon's value of 22.22% is 277.2% above this benchmark. Historically, Upcon's own Operating Margin % has ranged from 5.24 to 30.31 over the past decade. While the company's 10-year median is 18.42 vs. the industry median of 5.89, Upcon 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Upcon's current Operating Margin % of 22.22% is 277.2% 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 Upcon and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Upcon's current Operating Margin % is 22.22%, which is 21% above median its own 10-year median of 18.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Upcon stock overvalued right now?
Based on GuruFocus' analysis, Upcon (NGO:5075) is currently considered Significantly Overvalued. The stock's GF Value™ is 円738.20, compared to a current price of 円1,283.00 — trading 73.8% above its estimated fair value. The current Operating Margin % is 22.22%, which is 21% above median its 10-year median of 18.42 and 277.2% above the Construction industry median of 5.89. Upcon's overall GF Score™ is 66/100 with 2 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 Upcon (NGO:5075), the current Operating Margin % is 22.22% as of Jan. 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 Upcon (NGO:5075) Overvalued in 2026?
Based on GuruFocus' analysis, Upcon stock appears to be overvalued.
The current stock price of 円1,283.00 is trading 73.8% above its estimated GF Value™ of 円738.20.
GuruFocus considers Upcon to be Significantly Overvalued.
Key valuation signals for NGO:5075:
Operating Margin %: 22.22% (21% above median its 10-year median of 18.42)
GF Value™: 円738.20 vs. price of 円1,283.00 (73.8% above fair value)
Industry Position: 277.2% above the Construction median (#77 of 1767)
No single metric tells the full story. See the NGO:5075 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Upcon Corp operates in the civil engineering and construction industry predominantly in Japan. The company applies its Upcon method, which uses completely non-freon urethane resin and small machines to repair subsidence, tilt, steps, gaps, etc., in concrete floors, caused by earthquakes or uneven ground settlement. The Upcon method is also used to correct unevenness on roads, ports, and airports, mainly for public works projects. In addition, the company provides gap and cavity filling services, maintains and repairs waterway tunnels, and is working on several projects, including a new construction method using urethane foam resin. It operates in a single segment, the subsidence correction business.
66GF Score
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