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Gun Ei Chemical Industry CoTSE:4229 -1.73%65 Operating Margin % is 7.43% as of Mar. 2026, which is 11% below its 10-year median of 8.34. GuruFocus rates TSE:4229 with a GF Score™ of 65/100 and a GF Value™ of 円3,203.39 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,577 Chemicals companies, Gun Ei Chemical Industry Co ranks better than 59.99% on this metric.
Gun Ei Chemical Industry Co (TSE:4229) 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.
Gun Ei Chemical Industry Co Operating Margin % Related Terms
Gun Ei Chemical Industry 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.
Gun Ei Chemical Industry Co Operating Margin % Chart
TSE:4229 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Gun Ei Chemical Industry 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.
Gun Ei Chemical Industry Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Gun Ei Chemical Industry Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Gun Ei Chemical Industry Co's Operating Margin % falls into.
Gun Ei Chemical Industry 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.
Gun Ei Chemical Industry 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.
Gun Ei Chemical Industry Co (TSE:4229) has a Operating Margin % of 7.43% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Gun Ei Chemical Industry Co and its competitors. This is 11% below median its historical median of 8.34. Over the past decade, Gun Ei Chemical Industry Co's Operating Margin % has ranged from 5.29 to 10.75. According to the industry distribution chart, Gun Ei Chemical Industry Co ranks #631 out of 1577 companies in the Chemicals industry, placing it in the top 40%.
Is Gun Ei Chemical Industry Co's Operating Margin % too high?
Gun Ei Chemical Industry Co's current Operating Margin % of 7.43% is 11% below median its 10-year median of 8.34. Over the past 10 years, this metric has ranged from a low of 5.29 to a high of 10.75. The Chemicals industry median Operating Margin % is 6.03. Gun Ei Chemical Industry Co's value of 7.43% is 23.2% above this industry median. Based on the distribution chart, Gun Ei Chemical Industry Co ranks #631 out of 1577 companies in the Chemicals industry, which is above the industry midpoint. Overall, Gun Ei Chemical Industry Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gun Ei Chemical Industry Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Gun Ei Chemical Industry Co ranks #631 out of 1577 companies for Operating Margin %. This puts Gun Ei Chemical Industry Co in the upper half of its industry. The industry median Operating Margin % is 6.03. Gun Ei Chemical Industry Co's value of 7.43% is 23.2% above this benchmark. Historically, Gun Ei Chemical Industry Co's own Operating Margin % has ranged from 5.29 to 10.75 over the past decade. While the company's 10-year median is 8.34 vs. the industry median of 6.03, Gun Ei Chemical Industry 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. Gun Ei Chemical Industry Co's current Operating Margin % of 7.43% is 23.2% 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 Gun Ei Chemical Industry 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. Gun Ei Chemical Industry Co's current Operating Margin % is 7.43%, which is 11% below median its own 10-year median of 8.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gun Ei Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Gun Ei Chemical Industry Co (TSE:4229) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,203.39, compared to a current price of 円4,545.00 — trading 41.9% above its estimated fair value. The current Operating Margin % is 7.43%, which is 11% below median its 10-year median of 8.34 and 23.2% above the Chemicals industry median of 6.03. Gun Ei Chemical Industry Co's overall GF Score™ is 65/100 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 Gun Ei Chemical Industry Co (TSE:4229), the current Operating Margin % is 7.43% 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 Gun Ei Chemical Industry Co (TSE:4229) Overvalued in 2026?
Based on GuruFocus' analysis, Gun Ei Chemical Industry Co stock appears to be overvalued.
The current stock price of 円4,545.00 is trading 41.9% above its estimated GF Value™ of 円3,203.39.
GuruFocus considers Gun Ei Chemical Industry Co to be Significantly Overvalued.
Key valuation signals for TSE:4229:
Operating Margin %: 7.43% (11% below median its 10-year median of 8.34)
GF Value™: 円3,203.39 vs. price of 円4,545.00 (41.9% above fair value)
Industry Position: 23.2% above the Chemicals median (#631 of 1577)
No single metric tells the full story. See the TSE:4229 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gun Ei Chemical Industry Co Ltd is a chemical manufacturer. The company operates in two business segments. The Chemical segment manufactures and sells industrial phenol resin, urea-melamine-based adhesives, casting binders, spherical resin, plasticizers, formalin, Bisphenol F, resin and hardener for molding processes, high-function fiber, and resin-coated sand. The Real Estate Utilization segment is involved the real estate leasing business.
65GF Score
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