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Dainichiseika Color & Chemicals Mfg Co (TSE:4116) 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.
Dainichiseika Color & Chemicals Mfg Co Operating Margin % Related Terms
Dainichiseika Color & Chemicals Mfg 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.
Dainichiseika Color & Chemicals Mfg Co Operating Margin % Chart
Dainichiseika Color & Chemicals Mfg Co Annual Data
TSE:4116 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Dainichiseika Color & Chemicals Mfg 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.
Dainichiseika Color & Chemicals Mfg Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Dainichiseika Color & Chemicals Mfg Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dainichiseika Color & Chemicals Mfg Co's Operating Margin % falls into.
Dainichiseika Color & Chemicals Mfg 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.
Dainichiseika Color & Chemicals Mfg Co (TSE:4116) has a Operating Margin % of 4.58% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dainichiseika Color & Chemicals Mfg Co and its competitors. This is 15% below median its historical median of 5.37. Over the past decade, Dainichiseika Color & Chemicals Mfg Co's Operating Margin % has ranged from 2.16 to 8.00. According to the industry distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #783 out of 1578 companies in the Chemicals industry, placing it in the top 49.6%.
Is Dainichiseika Color & Chemicals Mfg Co's Operating Margin % too high?
Dainichiseika Color & Chemicals Mfg Co's current Operating Margin % of 4.58% is 15% below median its 10-year median of 5.37. Over the past 10 years, this metric has ranged from a low of 2.16 to a high of 8.00. The Chemicals industry median Operating Margin % is 6.05. Dainichiseika Color & Chemicals Mfg Co's value of 4.58% is 24.2% below this industry median. Based on the distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #783 out of 1578 companies in the Chemicals industry, which is above the industry midpoint. Overall, Dainichiseika Color & Chemicals Mfg Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dainichiseika Color & Chemicals Mfg Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #783 out of 1578 companies for Operating Margin %. This puts Dainichiseika Color & Chemicals Mfg Co in the upper half of its industry. The industry median Operating Margin % is 6.05. Dainichiseika Color & Chemicals Mfg Co's value of 4.58% is 24.2% below this benchmark. Historically, Dainichiseika Color & Chemicals Mfg Co's own Operating Margin % has ranged from 2.16 to 8.00 over the past decade. While the company's 10-year median is 5.37 vs. the industry median of 6.05, Dainichiseika Color & Chemicals Mfg 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.05, based on 1,578 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. Dainichiseika Color & Chemicals Mfg Co's current Operating Margin % of 4.58% is 24.2% 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 Dainichiseika Color & Chemicals Mfg Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dainichiseika Color & Chemicals Mfg Co's current Operating Margin % is 4.58%, which is 15% below median its own 10-year median of 5.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dainichiseika Color & Chemicals Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Dainichiseika Color & Chemicals Mfg Co (TSE:4116) is currently considered Significantly Overvalued. The stock's GF Value™ is 円781.82, compared to a current price of 円1,089.00 — trading 39.3% above its estimated fair value. The current Operating Margin % is 4.58%, which is 15% below median its 10-year median of 5.37 and 24.2% below the Chemicals industry median of 6.05. Dainichiseika Color & Chemicals Mfg Co's overall GF Score™ is 67/100 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 Dainichiseika Color & Chemicals Mfg Co (TSE:4116), the current Operating Margin % is 4.58% 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 Dainichiseika Color & Chemicals Mfg Co (TSE:4116) Overvalued in 2026?
Based on GuruFocus' analysis, Dainichiseika Color & Chemicals Mfg Co stock appears to be overvalued.
The current stock price of 円1,089.00 is trading 39.3% above its estimated GF Value™ of 円781.82.
GuruFocus considers Dainichiseika Color & Chemicals Mfg Co to be Significantly Overvalued.
Key valuation signals for TSE:4116:
Operating Margin %: 4.58% (15% below median its 10-year median of 5.37)
GF Value™: 円781.82 vs. price of 円1,089.00 (39.3% above fair value)
Industry Position: 24.2% below the Chemicals median (#783 of 1578)
No single metric tells the full story. See the TSE:4116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dainichiseika Color & Chemicals Mfg Co Business Description
Dainichiseika Color & Chemicals Mfg Co Ltd manufactures and sells pigments, plastics, and inks in five segments based on product type. The polymers segment, which generates the majority of revenue, sells plastic resins used to produce interior components for automobiles, polyurethane coatings and adhesives, and textile coatings. The pigments segment sells inorganic pigments and colorants. The prepared colors and chemicals segment sells colorants used in plastics and coatings. The printing inks segment sells inks for printing and gravure. The other segment leases real estate properties.
67GF Score
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