InpexTSE:1605 -1.59%58 Operating Margin % is 51.18% as of Dec. 2025, which is 6% above its 10-year median of 48.15. GuruFocus rates TSE:1605 with a GF Score™ of 58/100 and a GF Value™ of 円2,147.96 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 916 Oil & Gas companies, Inpex ranks better than 95.96% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Inpex's Operating Income for the
three
months ended in Dec. 2025 was 円251,144 Mil. Inpex's Revenue for the
three
months ended in Dec. 2025 was 円490,704 Mil. Therefore, Inpex's Operating Margin % for the quarter that ended in Dec. 2025 was 51.18%.
Good Sign:
Inpex Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Inpex's Operating Margin % or its related term are showing as below:
TSE:1605'
s Operating Margin % Range Over the Past 10 Years
Min: 32.23 Med: 48.15 Max: 53.62
Current: 51.54
TSE:1605's Operating Margin % is ranked better than 95.96% of 916
companies
in the Oil & Gas industry
Industry Median: 6.86
vs TSE:1605: 51.54
Inpex's 5-Year Average Operating Margin % Growth Rate was 7.90% per year.
Inpex's Operating Income for the
three
months ended in Dec. 2025 was 円251,144 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円1,018,519 Mil.
Inpex (TSE:1605) 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.
Inpex Operating Margin % Related Terms
Inpex Operating Margin % Historical Data
* Premium members only.
The historical data trend for Inpex'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.
TSE:1605 vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Inpex'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.
Inpex Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Inpex's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Inpex'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.
Inpex's Operating Margin % for the fiscal year that ended in Dec. 2025 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.
Inpex (TSE:1605) has a Operating Margin % of 51.18% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Inpex and its competitors. This is near median its historical median of 48.15. Over the past decade, Inpex's Operating Margin % has ranged from 32.23 to 53.62. According to the industry distribution chart, Inpex ranks #37 out of 916 companies in the Oil & Gas industry, placing it in the top 4%.
Is Inpex's Operating Margin % too high?
Inpex's current Operating Margin % of 51.18% is near median its 10-year median of 48.15. Over the past 10 years, this metric has ranged from a low of 32.23 to a high of 53.62. The Oil & Gas industry median Operating Margin % is 6.86. Inpex's value of 51.18% is 646.1% above this industry median. Based on the distribution chart, Inpex ranks #37 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Inpex has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Inpex's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Inpex ranks #37 out of 916 companies for Operating Margin %. This places Inpex in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Inpex's value of 51.18% is 646.1% above this benchmark. Historically, Inpex's own Operating Margin % has ranged from 32.23 to 53.62 over the past decade. While the company's 10-year median is 48.15 vs. the industry median of 6.86, Inpex 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 an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 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. Inpex's current Operating Margin % of 51.18% is 646.1% 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 Inpex and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inpex's current Operating Margin % is 51.18%, which is near median its own 10-year median of 48.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inpex stock overvalued right now?
Based on GuruFocus' analysis, Inpex (TSE:1605) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,147.96, compared to a current price of 円3,401.00 — trading 58.3% above its estimated fair value. The current Operating Margin % is 51.18%, which is near median its 10-year median of 48.15 and 646.1% above the Oil & Gas industry median of 6.86. Inpex's overall GF Score™ is 58/100 with 3 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 Inpex (TSE:1605), the current Operating Margin % is 51.18% as of Dec. 2025. 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 Inpex (TSE:1605) Overvalued in 2026?
Based on GuruFocus' analysis, Inpex stock appears to be overvalued.
The current stock price of 円3,401.00 is trading 58.3% above its estimated GF Value™ of 円2,147.96.
GuruFocus considers Inpex to be Significantly Overvalued.
Key valuation signals for TSE:1605:
Operating Margin %: 51.18% (near median its 10-year median of 48.15)
GF Value™: 円2,147.96 vs. price of 円3,401.00 (58.3% above fair value)
Industry Position: 646.1% above the Oil & Gas median (#37 of 916)
No single metric tells the full story. See the TSE:1605 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Headquartered in Tokyo, Inpex was founded in 2008 through a merger with Teikoku Oil. The precursor Inpex began life in 1966 as North Sumatra Offshore Petroleum Exploration and discovered the Attaka field in Indonesia in 1970 before acquiring the ADMA Block offshore the United Arab Emirates in 1973 and then discovering the Kashagan oilfield in Kazakhstan and Ichthys and Abadi gasfields in the Timor Sea in 2000. Teikoku Oil was founded in 1941 as a semigovernment entity and discovered Japan's largest natural gas reserves in Minami-Nagaoka in 1979. Inpex is Japan's largest hydrocarbon producer, with oil and gas projects across multiple continents. It produces around 230 million barrels of oil equivalent per year and has 6.2 billion barrels of oil equivalent in proven and probable reserves.
58GF Score
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