Japan Material CoNGO:6055 96 Operating Margin % is 28.55% as of Mar. 2026, which is 25% above its 10-year median of 22.84. GuruFocus rates NGO:6055 with a GF Score™ of 96/100 and a GF Value™ of 円1,913.43 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,767 Construction companies, Japan Material Co ranks better than 94.34% on this metric.
Japan Material Co (NGO:6055) 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.
Japan Material Co Operating Margin % Related Terms
Japan Material Co Operating Margin % Historical Data
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The historical data trend for Japan Material 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:6055 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Japan Material 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.
Japan Material Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Japan Material Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Material 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.
Japan Material 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.
Japan Material Co (NGO:6055) has a Operating Margin % of 28.55% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Material Co and its competitors. This is 25% above median its historical median of 22.84. Over the past decade, Japan Material Co's Operating Margin % has ranged from 15.97 to 25.25. According to the industry distribution chart, Japan Material Co ranks #100 out of 1767 companies in the Construction industry, placing it in the top 5.7%.
Is Japan Material Co's Operating Margin % too high?
Japan Material Co's current Operating Margin % of 28.55% is 25% above median its 10-year median of 22.84. Over the past 10 years, this metric has ranged from a low of 15.97 to a high of 25.25. The Construction industry median Operating Margin % is 5.89. Japan Material Co's value of 28.55% is 384.7% above this industry median. Based on the distribution chart, Japan Material Co ranks #100 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Material Co has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Material Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Japan Material Co ranks #100 out of 1767 companies for Operating Margin %. This places Japan Material Co in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Japan Material Co's value of 28.55% is 384.7% above this benchmark. Historically, Japan Material Co's own Operating Margin % has ranged from 15.97 to 25.25 over the past decade. While the company's 10-year median is 22.84 vs. the industry median of 5.89, Japan Material 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 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. Japan Material Co's current Operating Margin % of 28.55% is 384.7% 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 Japan Material Co 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. Japan Material Co's current Operating Margin % is 28.55%, which is 25% above median its own 10-year median of 22.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Material Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Material Co (NGO:6055) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,913.43, compared to a current price of 円2,405.00 — trading 25.7% above its estimated fair value. The current Operating Margin % is 28.55%, which is 25% above median its 10-year median of 22.84 and 384.7% above the Construction industry median of 5.89. Japan Material Co's overall GF Score™ is 96/100 with 7 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 Japan Material Co (NGO:6055), the current Operating Margin % is 28.55% 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 Japan Material Co (NGO:6055) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Material Co stock appears to be overvalued.
The current stock price of 円2,405.00 is trading 25.7% above its estimated GF Value™ of 円1,913.43.
GuruFocus considers Japan Material Co to be Modestly Overvalued.
Key valuation signals for NGO:6055:
Operating Margin %: 28.55% (25% above median its 10-year median of 22.84)
GF Value™: 円1,913.43 vs. price of 円2,405.00 (25.7% above fair value)
Industry Position: 384.7% above the Construction median (#100 of 1767)
No single metric tells the full story. See the NGO:6055 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Material Co Ltd is engaged in manufacturing specialty gas supply devices and providing piping work and other related services. The company operates through two segments namely Electronics and Graphics solutions. Its Electronics segment is involved in the development, manufacture, and sale of gas supply systems for semiconductors and liquid crystal production, and various maintenance services. The Graphics solutions segment import, plan, market, and support multi-monitor compatible graphics products for various systems.
96GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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