Osaka Organic Chemical Industry (TSE:4187) 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.
Osaka Organic Chemical Industry Operating Margin % Related Terms
Osaka Organic Chemical Industry 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.
Osaka Organic Chemical Industry Operating Margin % Chart
TSE:4187 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Osaka Organic Chemical Industry'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.
Osaka Organic Chemical Industry Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Osaka Organic Chemical Industry's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Osaka Organic Chemical Industry's Operating Margin % falls into.
Osaka Organic Chemical Industry 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.
Osaka Organic Chemical Industry (TSE:4187) has a Operating Margin % of 16.26% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Osaka Organic Chemical Industry and its competitors. This is 21% above median its historical median of 13.44. Over the past decade, Osaka Organic Chemical Industry's Operating Margin % has ranged from 10.35 to 18.41. According to the industry distribution chart, Osaka Organic Chemical Industry ranks #174 out of 1584 companies in the Chemicals industry, placing it in the top 11%.
Is Osaka Organic Chemical Industry's Operating Margin % too high?
Osaka Organic Chemical Industry's current Operating Margin % of 16.26% is 21% above median its 10-year median of 13.44. Over the past 10 years, this metric has ranged from a low of 10.35 to a high of 18.41. The Chemicals industry median Operating Margin % is 6.03. Osaka Organic Chemical Industry's value of 16.26% is 169.9% above this industry median. Based on the distribution chart, Osaka Organic Chemical Industry ranks #174 out of 1584 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Osaka Organic Chemical Industry has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Osaka Organic Chemical Industry's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Osaka Organic Chemical Industry ranks #174 out of 1584 companies for Operating Margin %. This places Osaka Organic Chemical Industry in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Osaka Organic Chemical Industry's value of 16.26% is 169.9% above this benchmark. Historically, Osaka Organic Chemical Industry's own Operating Margin % has ranged from 10.35 to 18.41 over the past decade. While the company's 10-year median is 13.44 vs. the industry median of 6.03, Osaka Organic Chemical Industry 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 1,584 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. Osaka Organic Chemical Industry's current Operating Margin % of 16.26% is 169.9% 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 Osaka Organic Chemical Industry 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. Osaka Organic Chemical Industry's current Operating Margin % is 16.26%, which is 21% above median its own 10-year median of 13.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Osaka Organic Chemical Industry stock overvalued right now?
Based on GuruFocus' analysis, Osaka Organic Chemical Industry (TSE:4187) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,518.11, compared to a current price of 円5,900.00 — trading 67.7% above its estimated fair value. The current Operating Margin % is 16.26%, which is 21% above median its 10-year median of 13.44 and 169.9% above the Chemicals industry median of 6.03. Osaka Organic Chemical Industry's overall GF Score™ is 89/100 with 8 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 Osaka Organic Chemical Industry (TSE:4187), the current Operating Margin % is 16.26% as of Nov. 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 Osaka Organic Chemical Industry (TSE:4187) Overvalued in 2026?
Based on GuruFocus' analysis, Osaka Organic Chemical Industry stock appears to be overvalued.
The current stock price of 円5,900.00 is trading 67.7% above its estimated GF Value™ of 円3,518.11.
GuruFocus considers Osaka Organic Chemical Industry to be Significantly Overvalued.
Key valuation signals for TSE:4187:
Operating Margin %: 16.26% (21% above median its 10-year median of 13.44)
GF Value™: 円3,518.11 vs. price of 円5,900.00 (67.7% above fair value)
Industry Position: 169.9% above the Chemicals median (#174 of 1584)
No single metric tells the full story. See the TSE:4187 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Osaka Organic Chemical Industry Business Description
Osaka Organic Chemical Industry Ltd is engaged in the production and marketing of organic chemistry industry products, organic reagents, petrochemical products, and special polymers, refining and processing of solvents. It operates in three segments: Chemical segment manufactures and sells speciality acrylic acid ester and acrylic acid for paints, adhesives and inks. The Electronic Materials segment manufactures and sells electronic materials, such as liquid crystal materials and semiconductors. The Specialty Chemicals segment manufactures and sells cosmetics raw materials and functional materials.
89GF Score
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