Hosoya Pyro-Engineering CoTSE:4274 +1.18%74 Operating Margin % is 12.16% as of Mar. 2026, which is 10% above its 10-year median of 11.04. GuruFocus rates TSE:4274 with a GF Score™ of 74/100 and a GF Value™ of 円1,422.00 (Modestly Undervalued). Among 1,584 Chemicals companies, Hosoya Pyro-Engineering Co ranks better than 81% on this metric.
Hosoya Pyro-Engineering Co (TSE:4274) 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.
Hosoya Pyro-Engineering Co Operating Margin % Related Terms
Hosoya Pyro-Engineering 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.
Hosoya Pyro-Engineering Co Operating Margin % Chart
For the Chemicals subindustry, Hosoya Pyro-Engineering 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.
Hosoya Pyro-Engineering Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hosoya Pyro-Engineering Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hosoya Pyro-Engineering Co's Operating Margin % falls into.
Hosoya Pyro-Engineering 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.
Hosoya Pyro-Engineering 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.
Hosoya Pyro-Engineering Co (TSE:4274) has a Operating Margin % of 12.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hosoya Pyro-Engineering Co and its competitors. This is 10% above median its historical median of 11.04. Over the past decade, Hosoya Pyro-Engineering Co's Operating Margin % has ranged from 9.25 to 14.26. According to the industry distribution chart, Hosoya Pyro-Engineering Co ranks #301 out of 1584 companies in the Chemicals industry, placing it in the top 19%.
Is Hosoya Pyro-Engineering Co's Operating Margin % too high?
Hosoya Pyro-Engineering Co's current Operating Margin % of 12.16% is 10% above median its 10-year median of 11.04. Over the past 10 years, this metric has ranged from a low of 9.25 to a high of 14.26. The Chemicals industry median Operating Margin % is 6.03. Hosoya Pyro-Engineering Co's value of 12.16% is 101.8% above this industry median. Based on the distribution chart, Hosoya Pyro-Engineering Co ranks #301 out of 1584 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Hosoya Pyro-Engineering Co has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hosoya Pyro-Engineering Co's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Hosoya Pyro-Engineering Co ranks #301 out of 1584 companies for Operating Margin %. This places Hosoya Pyro-Engineering Co in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Hosoya Pyro-Engineering Co's value of 12.16% is 101.8% above this benchmark. Historically, Hosoya Pyro-Engineering Co's own Operating Margin % has ranged from 9.25 to 14.26 over the past decade. While the company's 10-year median is 11.04 vs. the industry median of 6.03, Hosoya Pyro-Engineering 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 1,584 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. Hosoya Pyro-Engineering Co's current Operating Margin % of 12.16% is 101.8% 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 Hosoya Pyro-Engineering 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. Hosoya Pyro-Engineering Co's current Operating Margin % is 12.16%, which is 10% above median its own 10-year median of 11.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hosoya Pyro-Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Hosoya Pyro-Engineering Co (TSE:4274) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,422.00, compared to a current price of 円1,033.00 — trading 27.4% below its estimated fair value. The current Operating Margin % is 12.16%, which is 10% above median its 10-year median of 11.04 and 101.8% above the Chemicals industry median of 6.03. Hosoya Pyro-Engineering Co's overall GF Score™ is 74/100. 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 Hosoya Pyro-Engineering Co (TSE:4274), the current Operating Margin % is 12.16% 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 Hosoya Pyro-Engineering Co (TSE:4274) Overvalued in 2026?
Based on GuruFocus' analysis, Hosoya Pyro-Engineering Co stock appears to be undervalued.
The current stock price of 円1,033.00 is trading 27.4% below its estimated GF Value™ of 円1,422.00.
GuruFocus considers Hosoya Pyro-Engineering Co to be Modestly Undervalued.
Key valuation signals for TSE:4274:
Operating Margin %: 12.16% (10% above median its 10-year median of 11.04)
GF Value™: 円1,422.00 vs. price of 円1,033.00 (27.4% below fair value)
Industry Position: 101.8% above the Chemicals median (#301 of 1584)
No single metric tells the full story. See the TSE:4274 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hosoya Pyro-Engineering Co Ltd manufactures and sells pyrotechnic products. The company is also involved in testing and evaluation activities and the disposal of pyrotechnics. The products offered by the company include diver marker SOS, mountain marker SOS, bird cracker, no pollution smoke cylinder, rainbow smoke golf ball, and other products.
74GF Score
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