Showa PaxxsTSE:3954 +0.04%58 Operating Margin % is 6.85% as of Sep. 2025, which is 15% above its 10-year median of 5.95. GuruFocus rates TSE:3954 with a GF Score™ of 58/100 and a GF Value™ of 円1,975.61 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 393 Packaging & Containers companies, Showa Paxxs ranks better than 61.07% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Showa Paxxs's Operating Income for the
six
months ended in Sep. 2025 was 円820 Mil. Showa Paxxs's Revenue for the
six
months ended in Sep. 2025 was 円11,972 Mil. Therefore, Showa Paxxs's Operating Margin % for the quarter that ended in Sep. 2025 was 6.85%.
Warning Sign:
Showa Paxxs Corp operating margin has been in a 5-year decline. The average rate of decline per year is -3.6%.
The historical rank and industry rank for Showa Paxxs's Operating Margin % or its related term are showing as below:
TSE:3954'
s Operating Margin % Range Over the Past 10 Years
Min: 4.72 Med: 5.95 Max: 6.98
Current: 6.93
TSE:3954's Operating Margin % is ranked better than 61.07% of 393
companies
in the Packaging & Containers industry
Industry Median: 5.24
vs TSE:3954: 6.93
Showa Paxxs's 5-Year Average Operating Margin % Growth Rate was -3.60% per year.
Showa Paxxs's Operating Income for the
six
months ended in Sep. 2025 was 円820 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2025 was 円1,632 Mil.
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.
Showa Paxxs Operating Margin % Related Terms
Showa Paxxs Operating Margin % Historical Data
* Premium members only.
The historical data trend for Showa Paxxs'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:3954 vs SW, PKG, AMCR: Operating Margin % Comparison
For the Packaging & Containers subindustry, Showa Paxxs'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.
Showa Paxxs Operating Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Showa Paxxs's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Showa Paxxs'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.
Showa Paxxs'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.
Showa Paxxs (TSE:3954) has a Operating Margin % of 6.85% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Showa Paxxs and its competitors. This is 15% above median its historical median of 5.95. Over the past decade, Showa Paxxs' Operating Margin % has ranged from 4.72 to 6.98. According to the industry distribution chart, Showa Paxxs ranks #153 out of 393 companies in the Packaging & Containers industry, placing it in the top 38.9%.
Is Showa Paxxs' Operating Margin % too high?
Showa Paxxs' current Operating Margin % of 6.85% is 15% above median its 10-year median of 5.95. Over the past 10 years, this metric has ranged from a low of 4.72 to a high of 6.98. The Packaging & Containers industry median Operating Margin % is 5.24. Showa Paxxs' value of 6.85% is 30.7% above this industry median. Based on the distribution chart, Showa Paxxs ranks #153 out of 393 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, Showa Paxxs has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Showa Paxxs' Operating Margin % compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, Showa Paxxs ranks #153 out of 393 companies for Operating Margin %. This puts Showa Paxxs in the upper half of its industry. The industry median Operating Margin % is 5.24. Showa Paxxs' value of 6.85% is 30.7% above this benchmark. Historically, Showa Paxxs' own Operating Margin % has ranged from 4.72 to 6.98 over the past decade. While the company's 10-year median is 5.95 vs. the industry median of 5.24, Showa Paxxs 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 a Packaging & Containers company?
The median Operating Margin % among Packaging & Containers companies is 5.24, based on 393 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. Showa Paxxs's current Operating Margin % of 6.85% is 30.7% 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 Showa Paxxs and its competitors. For the Packaging & Containers industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa Paxxs's current Operating Margin % is 6.85%, which is 15% above median its own 10-year median of 5.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa Paxxs stock overvalued right now?
Based on GuruFocus' analysis, Showa Paxxs (TSE:3954) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,975.61, compared to a current price of 円2,816.00 — trading 42.5% above its estimated fair value. The current Operating Margin % is 6.85%, which is 15% above median its 10-year median of 5.95 and 30.7% above the Packaging & Containers industry median of 5.24. Showa Paxxs' 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 Showa Paxxs (TSE:3954), the current Operating Margin % is 6.85% as of Sep. 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 Showa Paxxs (TSE:3954) Overvalued in 2026?
Based on GuruFocus' analysis, Showa Paxxs stock appears to be overvalued.
The current stock price of 円2,816.00 is trading 42.5% above its estimated GF Value™ of 円1,975.61.
GuruFocus considers Showa Paxxs to be Significantly Overvalued.
Key valuation signals for TSE:3954:
Operating Margin %: 6.85% (15% above median its 10-year median of 5.95)
GF Value™: 円1,975.61 vs. price of 円2,816.00 (42.5% above fair value)
Industry Position: 30.7% above the Packaging & Containers median (#153 of 393)
No single metric tells the full story. See the TSE:3954 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Showa Paxxs Corporation is an industrial packaging container manufacturer. It is engaged in manufacturing and selling packaging materials and containers. The products offered by the company include heavy wrapping paper bags, containers, film, and packaging machine equipment systems.
58GF Score
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