The historical rank and industry rank for Sumitomo Pharma Co's Operating Margin % or its related term are showing as below:
TSE:4506'
s Operating Margin % Range Over the Past 10 Years
Min: -112.8 Med: 11.68 Max: 23.18
Current: 23.18
TSE:4506's Operating Margin % is ranked better than 87.02% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs TSE:4506: 23.18
Sumitomo Pharma Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Sumitomo Pharma Co (TSE:4506) 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.
Sumitomo Pharma Co Operating Margin % Related Terms
Sumitomo Pharma Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sumitomo Pharma Co's Operating Margin % can be seen below:
* 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Sumitomo Pharma 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.
Sumitomo Pharma Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sumitomo Pharma Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sumitomo Pharma Co's Operating Margin % falls into.
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.
Sumitomo Pharma 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.
Sumitomo Pharma Co (TSE:4506) has a Operating Margin % of -3.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sumitomo Pharma Co and its competitors. According to the industry distribution chart, Sumitomo Pharma Co ranks #124 out of 955 companies in the Drug Manufacturers industry, placing it in the top 13%.
Is Sumitomo Pharma Co's Operating Margin % too high?
Sumitomo Pharma Co's current Operating Margin % is -3.37%. Based on the distribution chart, Sumitomo Pharma Co ranks #124 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Sumitomo Pharma Co has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Pharma Co's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Sumitomo Pharma Co ranks #124 out of 955 companies for Operating Margin %. This places Sumitomo Pharma Co in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. 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 Sumitomo Pharma Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Pharma Co's current Operating Margin % is -3.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Pharma Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Pharma Co (TSE:4506) is currently considered Significantly Overvalued. The stock's GF Value™ is 円827.78, compared to a current price of 円1,493.50 — trading 80.4% above its estimated fair value. The current Operating Margin % is -3.37%. Sumitomo Pharma Co's overall GF Score™ is 55/100 with 6 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 Sumitomo Pharma Co (TSE:4506), the current Operating Margin % is -3.37% 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 Sumitomo Pharma Co (TSE:4506) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Pharma Co stock appears to be overvalued.
The current stock price of 円1,493.50 is trading 80.4% above its estimated GF Value™ of 円827.78.
GuruFocus considers Sumitomo Pharma Co to be Significantly Overvalued.
Key valuation signals for TSE:4506:
Operating Margin %: -3.37%
GF Value™: 円827.78 vs. price of 円1,493.50 (80.4% above fair value)
No single metric tells the full story. See the TSE:4506 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Pharma Co Ltd is a specialty and generic drug manufacturing company. Sumitomo's vast majority of sales are generated in North America, followed by Japan. The company's core business is its pharmaceutical products business. The pharmaceutical business maintains a focus on a variety of areas, including cardiovascular/diabetes, psychiatry & neurology, and specialty areas. Sumitomo considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.
55GF Score
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