Nippon Carbide Industries CoTSE:4064 +0.61%75 Operating Margin % is 7.80% as of Mar. 2026, which is 40% above its 10-year median of 5.57. GuruFocus rates TSE:4064 with a GF Score™ of 75/100 and a GF Value™ of 円2,052.41 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,577 Chemicals companies, Nippon Carbide Industries Co ranks better than 60.05% on this metric.
Nippon Carbide Industries Co (TSE:4064) 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 Carbide Industries Co Operating Margin % Related Terms
Nippon Carbide Industries Co Operating Margin % Historical Data
* 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 Carbide Industries Co Operating Margin % Chart
TSE:4064 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Nippon Carbide Industries 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 Carbide Industries Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Carbide Industries Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Carbide Industries Co's Operating Margin % falls into.
Nippon Carbide Industries 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.
* 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 Carbide Industries Co (TSE:4064) has a Operating Margin % of 7.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Carbide Industries Co and its competitors. This is 40% above median its historical median of 5.57. Over the past decade, Nippon Carbide Industries Co's Operating Margin % has ranged from 1.96 to 8.21. According to the industry distribution chart, Nippon Carbide Industries Co ranks #630 out of 1577 companies in the Chemicals industry, placing it in the top 39.9%.
Is Nippon Carbide Industries Co's Operating Margin % too high?
Nippon Carbide Industries Co's current Operating Margin % of 7.80% is 40% above median its 10-year median of 5.57. Over the past 10 years, this metric has ranged from a low of 1.96 to a high of 8.21. The Chemicals industry median Operating Margin % is 6.03. Nippon Carbide Industries Co's value of 7.80% is 29.4% above this industry median. Based on the distribution chart, Nippon Carbide Industries Co ranks #630 out of 1577 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Carbide Industries Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Carbide Industries Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nippon Carbide Industries Co ranks #630 out of 1577 companies for Operating Margin %. This puts Nippon Carbide Industries Co in the upper half of its industry. The industry median Operating Margin % is 6.03. Nippon Carbide Industries Co's value of 7.80% is 29.4% above this benchmark. Historically, Nippon Carbide Industries Co's own Operating Margin % has ranged from 1.96 to 8.21 over the past decade. While the company's 10-year median is 5.57 vs. the industry median of 6.03, Nippon Carbide Industries Co 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,577 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 Carbide Industries Co's current Operating Margin % of 7.80% is 29.4% 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 Carbide Industries Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Carbide Industries Co's current Operating Margin % is 7.80%, which is 40% above median its own 10-year median of 5.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Carbide Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Carbide Industries Co (TSE:4064) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,052.41, compared to a current price of 円3,315.00 — trading 61.5% above its estimated fair value. The current Operating Margin % is 7.80%, which is 40% above median its 10-year median of 5.57 and 29.4% above the Chemicals industry median of 6.03. Nippon Carbide Industries Co's overall GF Score™ is 75/100 with 1 warning sign 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 Carbide Industries Co (TSE:4064), the current Operating Margin % is 7.80% 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 Carbide Industries Co (TSE:4064) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Carbide Industries Co stock appears to be overvalued.
The current stock price of 円3,315.00 is trading 61.5% above its estimated GF Value™ of 円2,052.41.
GuruFocus considers Nippon Carbide Industries Co to be Significantly Overvalued.
Key valuation signals for TSE:4064:
Operating Margin %: 7.80% (40% above median its 10-year median of 5.57)
GF Value™: 円2,052.41 vs. price of 円3,315.00 (61.5% above fair value)
Industry Position: 29.4% above the Chemicals median (#630 of 1577)
No single metric tells the full story. See the TSE:4064 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Carbide Industries Co Inc is engaged in the manufacture and sales of chemicals, plastics and resins, plastics films and electronic materials. Its product offerings include calcium carbide, dicyandiamide, cyanamide solution, among others. The company also manufacture and sell adhesive products used in medical, optical, and electronic equipment, coating materials for paper, film, and metal, fiber processing, and pigments.
75GF Score
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