Santen Pharmaceutical CoTSE:4536 +2.05%75 Operating Margin % is 24.21% as of Mar. 2026, which is 64% above its 10-year median of 14.76. GuruFocus rates TSE:4536 with a GF Score™ of 75/100 and a GF Value™ of 円1,680.15 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Santen Pharmaceutical Co ranks better than 74.35% on this metric.
The historical rank and industry rank for Santen Pharmaceutical Co's Operating Margin % or its related term are showing as below:
TSE:4536'
s Operating Margin % Range Over the Past 10 Years
Min: -1.11 Med: 14.76 Max: 19.27
Current: 16.39
TSE:4536's Operating Margin % is ranked better than 74.35% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs TSE:4536: 16.39
Santen Pharmaceutical Co (TSE:4536) 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.
Santen Pharmaceutical Co Operating Margin % Related Terms
Santen Pharmaceutical 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.
TSE:4536 vs LLY, JNJ, ABBV: Operating Margin % Comparison
For the Drug Manufacturers - General subindustry, Santen Pharmaceutical 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.
Santen Pharmaceutical Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Santen Pharmaceutical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Santen Pharmaceutical Co's Operating Margin % falls into.
Santen Pharmaceutical 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.
Santen Pharmaceutical 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.
Santen Pharmaceutical Co (TSE:4536) has a Operating Margin % of 24.21% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Santen Pharmaceutical Co and its competitors. This is 64% above median its historical median of 14.76. According to the industry distribution chart, Santen Pharmaceutical Co ranks #245 out of 955 companies in the Drug Manufacturers industry, placing it in the top 25.7%.
Is Santen Pharmaceutical Co's Operating Margin % too high?
Santen Pharmaceutical Co's current Operating Margin % of 24.21% is 64% above median its 10-year median of 14.76. The Drug Manufacturers industry median Operating Margin % is 7.45. Santen Pharmaceutical Co's value of 24.21% is 225% above this industry median. Based on the distribution chart, Santen Pharmaceutical Co ranks #245 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Santen Pharmaceutical Co has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Santen Pharmaceutical Co's Operating Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Santen Pharmaceutical Co ranks #245 out of 955 companies for Operating Margin %. This puts Santen Pharmaceutical Co in the upper half of its industry. The industry median Operating Margin % is 7.45. Santen Pharmaceutical Co's value of 24.21% is 225% above this benchmark. While the company's 10-year median is 14.76 vs. the industry median of 7.45, Santen Pharmaceutical 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 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. Santen Pharmaceutical Co's current Operating Margin % of 24.21% is 225% 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 Santen Pharmaceutical 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. Santen Pharmaceutical Co's current Operating Margin % is 24.21%, which is 64% above median its own 10-year median of 14.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Santen Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Santen Pharmaceutical Co (TSE:4536) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,680.15, compared to a current price of 円2,045.00 — trading 21.7% above its estimated fair value. The current Operating Margin % is 24.21%, which is 64% above median its 10-year median of 14.76 and 225% above the Drug Manufacturers industry median of 7.45. Santen Pharmaceutical Co's overall GF Score™ is 75/100 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 Santen Pharmaceutical Co (TSE:4536), the current Operating Margin % is 24.21% 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 Santen Pharmaceutical Co (TSE:4536) Overvalued in 2026?
Based on GuruFocus' analysis, Santen Pharmaceutical Co stock appears to be overvalued.
The current stock price of 円2,045.00 is trading 21.7% above its estimated GF Value™ of 円1,680.15.
GuruFocus considers Santen Pharmaceutical Co to be Modestly Overvalued.
Key valuation signals for TSE:4536:
Operating Margin %: 24.21% (64% above median its 10-year median of 14.76)
GF Value™: 円1,680.15 vs. price of 円2,045.00 (21.7% above fair value)
Industry Position: 225% above the Drug Manufacturers median (#245 of 955)
No single metric tells the full story. See the TSE:4536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Santen Pharmaceutical Co Ltd is a drug manufacturing company that focuses on ophthalmic products. The company provides a wide range of prescription and over-the-counter eye care products, including treatments for glaucoma, dry eye, and allergies. It also develops surgical and diagnostic devices related to eye care.
75GF Score
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