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Chuetsu Pulp & Paper CoTSE:3877 -0.05%65 Operating Margin % is 2.42% as of Mar. 2026, which is 4% above its 10-year median of 2.32. GuruFocus rates TSE:3877 with a GF Score™ of 65/100 and a GF Value™ of 円1,662.47 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 283 Forest Products companies, Chuetsu Pulp & Paper Co ranks worse than 50.53% on this metric.
Chuetsu Pulp & Paper Co (TSE:3877) 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.
Chuetsu Pulp & Paper Co Operating Margin % Related Terms
Chuetsu Pulp & Paper Co Operating Margin % Historical Data
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The historical data trend for Chuetsu Pulp & Paper 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.
Chuetsu Pulp & Paper Co Operating Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Chuetsu Pulp & Paper 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.
Chuetsu Pulp & Paper Co Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Chuetsu Pulp & Paper Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chuetsu Pulp & Paper Co's Operating Margin % falls into.
Chuetsu Pulp & Paper Co Operating Margin % Calculation
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.
Chuetsu Pulp & Paper 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.
Chuetsu Pulp & Paper Co (TSE:3877) has a Operating Margin % of 2.42% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chuetsu Pulp & Paper Co and its competitors. This is near median its historical median of 2.32. According to the industry distribution chart, Chuetsu Pulp & Paper Co ranks #143 out of 283 companies in the Forest Products industry, placing it in the top 50.5%.
Is Chuetsu Pulp & Paper Co's Operating Margin % too high?
Chuetsu Pulp & Paper Co's current Operating Margin % of 2.42% is near median its 10-year median of 2.32. The Forest Products industry median Operating Margin % is 2.59. Chuetsu Pulp & Paper Co's value of 2.42% is 6.6% below this industry median. Based on the distribution chart, Chuetsu Pulp & Paper Co ranks #143 out of 283 companies in the Forest Products industry, which is below the industry midpoint. Overall, Chuetsu Pulp & Paper Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chuetsu Pulp & Paper Co's Operating Margin % compare to competitors?
According to the Forest Products industry distribution chart, Chuetsu Pulp & Paper Co ranks #143 out of 283 companies for Operating Margin %. This places Chuetsu Pulp & Paper Co in the lower half of its industry. The industry median Operating Margin % is 2.59. Chuetsu Pulp & Paper Co's value of 2.42% is 6.6% below this benchmark. While the company's 10-year median is 2.32 vs. the industry median of 2.59, Chuetsu Pulp & Paper 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.59, based on 283 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. Chuetsu Pulp & Paper Co's current Operating Margin % of 2.42% is 6.6% 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 Chuetsu Pulp & Paper Co and its competitors. For the Forest Products industry, the median Operating Margin % is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chuetsu Pulp & Paper Co's current Operating Margin % is 2.42%, which is near median its own 10-year median of 2.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chuetsu Pulp & Paper Co stock overvalued right now?
Based on GuruFocus' analysis, Chuetsu Pulp & Paper Co (TSE:3877) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,662.47, compared to a current price of 円2,083.00 — trading 25.3% above its estimated fair value. The current Operating Margin % is 2.42%, which is near median its 10-year median of 2.32 and 6.6% below the Forest Products industry median of 2.59. Chuetsu Pulp & Paper Co's overall GF Score™ is 65/100 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 Chuetsu Pulp & Paper Co (TSE:3877), the current Operating Margin % is 2.42% 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 Chuetsu Pulp & Paper Co (TSE:3877) Overvalued in 2026?
Based on GuruFocus' analysis, Chuetsu Pulp & Paper Co stock appears to be overvalued.
The current stock price of 円2,083.00 is trading 25.3% above its estimated GF Value™ of 円1,662.47.
GuruFocus considers Chuetsu Pulp & Paper Co to be Modestly Overvalued.
Key valuation signals for TSE:3877:
Operating Margin %: 2.42% (near median its 10-year median of 2.32)
GF Value™: 円1,662.47 vs. price of 円2,083.00 (25.3% above fair value)
Industry Position: 6.6% below the Forest Products median (#143 of 283)
No single metric tells the full story. See the TSE:3877 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chuetsu Pulp & Paper Co Ltd is engaged in manufacturing, processing, and trading of pulp, paper, and by-products; forestry, lumber, and wood processing, trading, and construction of greening projects; manufacturing, processing, and trading of chemicals; real estate sales, rental, management, and brokerage, and management of sports facilities; mining, electricity supply, transportation, warehousing.
65GF Score
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