Nippon SteelNISTF -1.19%70 Operating Margin % is 4.89% as of Mar. 2026, which is 18% above its 10-year median of 4.16. GuruFocus rates NISTF with a GF Score™ of 70/100 and a GF Value™ of $4.46 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 616 Steel companies, Nippon Steel ranks better than 59.25% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Nippon Steel's Operating Income for the
three
months ended in Mar. 2026 was $865 Mil. Nippon Steel's Revenue for the
three
months ended in Mar. 2026 was $17,689 Mil. Therefore, Nippon Steel's Operating Margin % for the quarter that ended in Mar. 2026 was 4.89%.
Good Sign:
Nippon Steel Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Nippon Steel's Operating Margin % or its related term are showing as below:
NISTF'
s Operating Margin % Range Over the Past 10 Years
Min: -5.45 Med: 4.16 Max: 10.63
Current: 4.26
NISTF's Operating Margin % is ranked better than 59.25% of 616
companies
in the Steel industry
Industry Median: 3
vs NISTF: 4.26
Nippon Steel's 5-Year Average Operating Margin % Growth Rate was 14.90% per year.
Nippon Steel's Operating Income for the
three
months ended in Mar. 2026 was $865 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $2,807 Mil.
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.
Nippon Steel Operating Margin % Related Terms
Nippon Steel Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Steel'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.
NISTF vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Nippon Steel'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.
Nippon Steel Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Steel's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Steel'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.
Nippon Steel'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.
Nippon Steel (NISTF) has a Operating Margin % of 4.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Steel and its competitors. This is 18% above median its historical median of 4.16. According to the industry distribution chart, Nippon Steel ranks #251 out of 616 companies in the Steel industry, placing it in the top 40.7%.
Is Nippon Steel's Operating Margin % too high?
Nippon Steel's current Operating Margin % of 4.89% is 18% above median its 10-year median of 4.16. The Steel industry median Operating Margin % is 3.00. Nippon Steel's value of 4.89% is 63% above this industry median. Based on the distribution chart, Nippon Steel ranks #251 out of 616 companies in the Steel industry, which is above the industry midpoint. Overall, Nippon Steel has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Steel's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Steel ranks #251 out of 616 companies for Operating Margin %. This puts Nippon Steel in the upper half of its industry. The industry median Operating Margin % is 3.00. Nippon Steel's value of 4.89% is 63% above this benchmark. While the company's 10-year median is 4.16 vs. the industry median of 3.00, Nippon Steel 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 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. Nippon Steel's current Operating Margin % of 4.89% is 63% 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 Nippon Steel and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Steel's current Operating Margin % is 4.89%, which is 18% above median its own 10-year median of 4.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Steel stock overvalued right now?
Based on GuruFocus' analysis, Nippon Steel (NISTF) is currently considered Modestly Undervalued. The stock's GF Value™ is $4.46, compared to a current price of $3.33 — trading 25.3% below its estimated fair value. The current Operating Margin % is 4.89%, which is 18% above median its 10-year median of 4.16 and 63% above the Steel industry median of 3.00. Nippon Steel's overall GF Score™ is 70/100 with 8 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 Nippon Steel (NISTF), the current Operating Margin % is 4.89% 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 Nippon Steel (NISTF) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Steel stock appears to be undervalued.
The current stock price of $3.33 is trading 25.3% below its estimated GF Value™ of $4.46.
GuruFocus considers Nippon Steel to be Modestly Undervalued.
Key valuation signals for NISTF:
Operating Margin %: 4.89% (18% above median its 10-year median of 4.16)
GF Value™: $4.46 vs. price of $3.33 (25.3% below fair value)
Industry Position: 63% above the Steel median (#251 of 616)
No single metric tells the full story. See the NISTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Steel Corp is mainly engaged in the steel manufacturing business, engineering business, chemical & material business, and system solution business. The company operates through four business segments. The Chemicals & Materials segment manufactures and sells coal chemicals, petrochemicals, electronic materials, semiconductors, carbon fibers, composites, and processed metal products. The Engineering segment handles industrial machinery, steel structures, construction contracting, waste disposal, recycling, and energy supply. The Steel segment focuses on the production and sale of steel products. The System Solutions segment provides IT consulting, outsourcing, and related services. It generates the majority of its revenue from the Steel segment.
70GF Score
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