The historical rank and industry rank for Nippon Road Co's Operating Margin % or its related term are showing as below:
TSE:1884's Operating Margin % is not ranked *
in the Construction industry.
Industry Median: 5.89 * Ranked among companies with meaningful Operating Margin % only.
Nippon Road Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Nippon Road Co (TSE:1884) 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.
Nippon Road Co Operating Margin % Related Terms
Nippon Road Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Road 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.
TSE:1884 vs PWR, EME, FIX: Operating Margin % Comparison
For the Engineering & Construction subindustry, Nippon Road 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.
Nippon Road Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Nippon Road Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Road 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.
Nippon Road Co's Operating Margin % for the fiscal year that ended in Mar. 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.
Nippon Road Co (TSE:1884) has a Operating Margin % of 6.48% as of Mar. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Road Co and its competitors.
Is Nippon Road Co's Operating Margin % too high?
Nippon Road Co's current Operating Margin % is 6.48%. The Construction industry median Operating Margin % is 5.89. Nippon Road Co's value of 6.48% is 10% above this industry median. Overall, Nippon Road Co has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Road Co's Operating Margin % compare to PWR and EME?
Nippon Road Co's Operating Margin % of 6.48% can be compared against companies in the Construction industry. The industry median Operating Margin % is 5.89. Nippon Road Co's value of 6.48% is 10% above this benchmark. 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. Nippon Road Co's current Operating Margin % of 6.48% is 10% 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 Road 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. Nippon Road Co's current Operating Margin % is 6.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Road Co stock overvalued right now?
Nippon Road Co (TSE:1884) has a current Operating Margin % of 6.48%. The current Operating Margin % is 6.48% and 10% above the Construction industry median of 5.89. Nippon Road Co's overall GF Score™ is 17/100. 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 Road Co (TSE:1884), the current Operating Margin % is 6.48% as of Mar. 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.
Nippon Road Co Ltd is engaged in the business of general construction. The company is involved in the construction design, supervision, and management activities, road construction and paving work, general civil engineering works, building construction, construction of environmental, and sport and leisure facilities. In addition, it also manufactures and sells asphalt mixture materials and is also in the consulting business.
17GF Score
Get the complete analysis for TSE:1884
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:1884 has been successfully added to your 
