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SK Kaken CoSKKAF 74 Operating Margin % is 9.94% as of Mar. 2026, which is 15% below its 10-year median of 11.76. GuruFocus rates SKKAF with a GF Score™ of 74/100 and a GF Value™ of $69.08. The stock has 1 warning sign investors should review. Among 1,577 Chemicals companies, SK Kaken Co ranks better than 71.53% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SK Kaken Co's Operating Income for the
three
months ended in Mar. 2026 was $16.4 Mil. SK Kaken Co's Revenue for the
three
months ended in Mar. 2026 was $164.7 Mil. Therefore, SK Kaken Co's Operating Margin % for the quarter that ended in Mar. 2026 was 9.94%.
The historical rank and industry rank for SK Kaken Co's Operating Margin % or its related term are showing as below:
SKKAF'
s Operating Margin % Range Over the Past 10 Years
Min: 10.41 Med: 11.76 Max: 13.67
Current: 11.14
SKKAF's Operating Margin % is ranked better than 71.53% of 1577
companies
in the Chemicals industry
Industry Median: 6.03
vs SKKAF: 11.14
SK Kaken Co's 5-Year Average Operating Margin % Growth Rate was -0.30% per year.
SK Kaken Co's Operating Income for the
three
months ended in Mar. 2026 was $16.4 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $80.5 Mil.
SK Kaken Co (OTCPK:SKKAF) 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.
SK Kaken Co Operating Margin % Related Terms
SK Kaken Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for SK Kaken 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.
SKKAF vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, SK Kaken 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.
SK Kaken Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, SK Kaken Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SK Kaken 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.
SK Kaken 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.
SK Kaken Co (SKKAF) has a Operating Margin % of 9.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SK Kaken Co and its competitors. This is 15% below median its historical median of 11.76. Over the past decade, SK Kaken Co's Operating Margin % has ranged from 10.41 to 13.67. According to the industry distribution chart, SK Kaken Co ranks #449 out of 1577 companies in the Chemicals industry, placing it in the top 28.5%.
Is SK Kaken Co's Operating Margin % too high?
SK Kaken Co's current Operating Margin % of 9.94% is 15% below median its 10-year median of 11.76. Over the past 10 years, this metric has ranged from a low of 10.41 to a high of 13.67. The Chemicals industry median Operating Margin % is 6.03. SK Kaken Co's value of 9.94% is 64.8% above this industry median. Based on the distribution chart, SK Kaken Co ranks #449 out of 1577 companies in the Chemicals industry, which is above the industry midpoint. Overall, SK Kaken Co has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does SK Kaken Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, SK Kaken Co ranks #449 out of 1577 companies for Operating Margin %. This puts SK Kaken Co in the upper half of its industry. The industry median Operating Margin % is 6.03. SK Kaken Co's value of 9.94% is 64.8% above this benchmark. Historically, SK Kaken Co's own Operating Margin % has ranged from 10.41 to 13.67 over the past decade. While the company's 10-year median is 11.76 vs. the industry median of 6.03, SK Kaken 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 6.03, based on 1,577 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. SK Kaken Co's current Operating Margin % of 9.94% is 64.8% 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 SK Kaken Co 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. SK Kaken Co's current Operating Margin % is 9.94%, which is 15% below median its own 10-year median of 11.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SK Kaken Co stock overvalued right now?
SK Kaken Co (SKKAF) has a current Operating Margin % of 9.94%. The stock's GF Value™ is $69.08, compared to a current price of $66.37 — trading 3.9% below its estimated fair value. The current Operating Margin % is 9.94%, which is 15% below median its 10-year median of 11.76 and 64.8% above the Chemicals industry median of 6.03. SK Kaken Co's overall GF Score™ is 74/100 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 SK Kaken Co (SKKAF), the current Operating Margin % is 9.94% 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 SK Kaken Co (SKKAF) Overvalued in 2026?
Based on GuruFocus' analysis, SK Kaken Co stock appears to be undervalued.
The current stock price of $66.37 is trading 3.9% below its estimated GF Value™ of $69.08.
Key valuation signals for SKKAF:
Operating Margin %: 9.94% (15% below median its 10-year median of 11.76)
GF Value™: $69.08 vs. price of $66.37 (3.9% below fair value)
Industry Position: 64.8% above the Chemicals median (#449 of 1577)
No single metric tells the full story. See the SKKAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SK Kaken Co Ltd is a building coating manufacturer based in Japan. Its main businesses are, Decorative Coatings business which is involved in the manufacturing and sales of organic/inorganic water-based painting material, synthetic resin coating, inorganic painting material, inorganic construction materials and special finisher things; Fireproof Insulated business is engaged in the manufacturing and sales of fireproof paints and contract of fireproof, insulated construction; and Other business engages in manufacturing and sales of various transformation goods and cleaning agents.
74GF Score
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