Toray IndustriesTSE:3402 +0.53%79 Operating Margin % is 3.93% as of Mar. 2026, which is 17% below its 10-year median of 4.74. GuruFocus rates TSE:3402 with a GF Score™ of 79/100 and a GF Value™ of 円986.87 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,043 Manufacturing - Apparel & Accessories companies, Toray Industries ranks worse than 51.58% on this metric.
Toray Industries Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Toray Industries's Operating Margin % or its related term are showing as below:
TSE:3402'
s Operating Margin % Range Over the Past 10 Years
Min: 2.34 Med: 4.74 Max: 7.25
Current: 3.76
TSE:3402's Operating Margin % is ranked worse than 51.58% of 1043
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.08
vs TSE:3402: 3.76
Toray Industries's 5-Year Average Operating Margin % Growth Rate was 2.40% per year.
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.
Toray Industries Operating Margin % Related Terms
Toray Industries Operating Margin % Historical Data
* Premium members only.
The historical data trend for Toray Industries'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.
For the Textile Manufacturing subindustry, Toray Industries'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.
Toray Industries Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Toray Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Toray Industries'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.
Toray Industries'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.
Toray Industries (TSE:3402) has a Operating Margin % of 3.93% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Toray Industries and its competitors. This is 17% below median its historical median of 4.74. Over the past decade, Toray Industries' Operating Margin % has ranged from 2.34 to 7.25. According to the industry distribution chart, Toray Industries ranks #538 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 51.6%.
Is Toray Industries' Operating Margin % too high?
Toray Industries' current Operating Margin % of 3.93% is 17% below median its 10-year median of 4.74. Over the past 10 years, this metric has ranged from a low of 2.34 to a high of 7.25. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Toray Industries' value of 3.93% is 3.7% below this industry median. Based on the distribution chart, Toray Industries ranks #538 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Toray Industries has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toray Industries' Operating Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Toray Industries ranks #538 out of 1043 companies for Operating Margin %. This places Toray Industries in the lower half of its industry. The industry median Operating Margin % is 4.08. Toray Industries' value of 3.93% is 3.7% below this benchmark. Historically, Toray Industries' own Operating Margin % has ranged from 2.34 to 7.25 over the past decade. While the company's 10-year median is 4.74 vs. the industry median of 4.08, Toray Industries has consistently been below 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,043 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. Toray Industries's current Operating Margin % of 3.93% is 3.7% below 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 Toray Industries and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toray Industries's current Operating Margin % is 3.93%, which is 17% below median its own 10-year median of 4.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toray Industries stock overvalued right now?
Based on GuruFocus' analysis, Toray Industries (TSE:3402) is currently considered Modestly Overvalued. The stock's GF Value™ is 円986.87, compared to a current price of 円1,147.00 — trading 16.2% above its estimated fair value. The current Operating Margin % is 3.93%, which is 17% below median its 10-year median of 4.74 and 3.7% below the Manufacturing - Apparel & Accessories industry median of 4.08. Toray Industries' overall GF Score™ is 79/100 with 2 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 Toray Industries (TSE:3402), the current Operating Margin % is 3.93% 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 Toray Industries (TSE:3402) Overvalued in 2026?
Based on GuruFocus' analysis, Toray Industries stock appears to be overvalued.
The current stock price of 円1,147.00 is trading 16.2% above its estimated GF Value™ of 円986.87.
GuruFocus considers Toray Industries to be Modestly Overvalued.
Key valuation signals for TSE:3402:
Operating Margin %: 3.93% (17% below median its 10-year median of 4.74)
GF Value™: 円986.87 vs. price of 円1,147.00 (16.2% above fair value)
Industry Position: 3.7% below the Manufacturing - Apparel & Accessories median (#538 of 1043)
No single metric tells the full story. See the TSE:3402 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toray Industries Inc is a Japan-based company engaged in the textile business, functional chemicals business, carbon fiber composite materials, and other businesses. The Carbon Fiber Composite Materials segment covers carbon fiber, composites, and molded products. The Environment and Engineering segment includes membranes for water treatment, general engineering, industrial machinery, housing, and construction materials. The Functional Chemicals segment handles resins, foams, films, fine chemicals, and electronic materials. The Life Science segment focuses on pharmaceuticals and medical devices. The Textile segment provides fibers, fabrics, non-woven and apparel products, while Others offers analysis, survey, and research services. It generates majority of revenue from the Textile segment.
79GF Score
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