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Nippon Felt CoTSE:3512 +2.44%42 Operating Margin % is 3.77% as of Mar. 2026, which is 25% below its 10-year median of 5.03. GuruFocus rates TSE:3512 with a GF Score™ of 42/100 and a GF Value™ of 円461.62 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 549 Conglomerates companies, Nippon Felt Co ranks worse than 56.47% on this metric.
Nippon Felt Co (TSE:3512) 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 Felt Co Operating Margin % Related Terms
Nippon Felt Co Operating Margin % Historical Data
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The historical data trend for Nippon Felt 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:3512 vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Nippon Felt 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 Felt Co Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Nippon Felt Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Felt 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 Felt 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.
Nippon Felt Co (TSE:3512) has a Operating Margin % of 3.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Felt Co and its competitors. This is 25% below median its historical median of 5.03. Over the past decade, Nippon Felt Co's Operating Margin % has ranged from 2.06 to 7.93. According to the industry distribution chart, Nippon Felt Co ranks #310 out of 549 companies in the Conglomerates industry, placing it in the top 56.5%.
Is Nippon Felt Co's Operating Margin % too high?
Nippon Felt Co's current Operating Margin % of 3.77% is 25% below median its 10-year median of 5.03. Over the past 10 years, this metric has ranged from a low of 2.06 to a high of 7.93. The Conglomerates industry median Operating Margin % is 5.79. Nippon Felt Co's value of 3.77% is 34.9% below this industry median. Based on the distribution chart, Nippon Felt Co ranks #310 out of 549 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Nippon Felt Co has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Felt Co's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Nippon Felt Co ranks #310 out of 549 companies for Operating Margin %. This places Nippon Felt Co in the lower half of its industry. The industry median Operating Margin % is 5.79. Nippon Felt Co's value of 3.77% is 34.9% below this benchmark. Historically, Nippon Felt Co's own Operating Margin % has ranged from 2.06 to 7.93 over the past decade. While the company's 10-year median is 5.03 vs. the industry median of 5.79, Nippon Felt Co 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.79, based on 549 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 Felt Co's current Operating Margin % of 3.77% is 34.9% 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 Nippon Felt Co and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Felt Co's current Operating Margin % is 3.77%, which is 25% below median its own 10-year median of 5.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Felt Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Felt Co (TSE:3512) is currently considered Significantly Overvalued. The stock's GF Value™ is 円461.62, compared to a current price of 円1,006.00 — trading 117.9% above its estimated fair value. The current Operating Margin % is 3.77%, which is 25% below median its 10-year median of 5.03 and 34.9% below the Conglomerates industry median of 5.79. Nippon Felt Co's overall GF Score™ is 42/100 with 6 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 Felt Co (TSE:3512), the current Operating Margin % is 3.77% 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 Felt Co (TSE:3512) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Felt Co stock appears to be overvalued.
The current stock price of 円1,006.00 is trading 117.9% above its estimated GF Value™ of 円461.62.
GuruFocus considers Nippon Felt Co to be Significantly Overvalued.
Key valuation signals for TSE:3512:
Operating Margin %: 3.77% (25% below median its 10-year median of 5.03)
GF Value™: 円461.62 vs. price of 円1,006.00 (117.9% above fair value)
Industry Position: 34.9% below the Conglomerates median (#310 of 549)
No single metric tells the full story. See the TSE:3512 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Felt Co Ltd is a Japan-based company engages in producing, finishing, and selling felts for making paper, pulp, slate, and other industrial applications. It also involved in producing and selling various types of textile products and other industrial chemicals.
42GF Score
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