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Kawakami Paint Manufacturing Co (TSE:4616) 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.
Kawakami Paint Manufacturing Co Operating Margin % Related Terms
Kawakami Paint Manufacturing 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.
Kawakami Paint Manufacturing Co Operating Margin % Chart
TSE:4616 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Kawakami Paint Manufacturing 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.
Kawakami Paint Manufacturing Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kawakami Paint Manufacturing Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kawakami Paint Manufacturing Co's Operating Margin % falls into.
Kawakami Paint Manufacturing 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.
* 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.
Kawakami Paint Manufacturing Co (TSE:4616) has a Operating Margin % of 10.22% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kawakami Paint Manufacturing Co and its competitors. This is 244% above median its historical median of 2.97. According to the industry distribution chart, Kawakami Paint Manufacturing Co ranks #994 out of 1585 companies in the Chemicals industry, placing it in the top 62.7%.
Is Kawakami Paint Manufacturing Co's Operating Margin % too high?
Kawakami Paint Manufacturing Co's current Operating Margin % of 10.22% is 244% above median its 10-year median of 2.97. The Chemicals industry median Operating Margin % is 6.84. Kawakami Paint Manufacturing Co's value of 10.22% is 49.4% above this industry median. Based on the distribution chart, Kawakami Paint Manufacturing Co ranks #994 out of 1585 companies in the Chemicals industry, which is below the industry midpoint. Overall, Kawakami Paint Manufacturing Co has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawakami Paint Manufacturing Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Kawakami Paint Manufacturing Co ranks #994 out of 1585 companies for Operating Margin %. This places Kawakami Paint Manufacturing Co in the lower half of its industry. The industry median Operating Margin % is 6.84. Kawakami Paint Manufacturing Co's value of 10.22% is 49.4% above this benchmark. While the company's 10-year median is 2.97 vs. the industry median of 6.84, Kawakami Paint Manufacturing 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 6.84, based on 1,585 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. Kawakami Paint Manufacturing Co's current Operating Margin % of 10.22% is 49.4% 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 Kawakami Paint Manufacturing Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawakami Paint Manufacturing Co's current Operating Margin % is 10.22%, which is 244% above median its own 10-year median of 2.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawakami Paint Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Kawakami Paint Manufacturing Co (TSE:4616) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,737.12, compared to a current price of 円2,135.00 — trading 22.9% above its estimated fair value. The current Operating Margin % is 10.22%, which is 244% above median its 10-year median of 2.97 and 49.4% above the Chemicals industry median of 6.84. Kawakami Paint Manufacturing Co's overall GF Score™ is 63/100 with 2 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 Kawakami Paint Manufacturing Co (TSE:4616), the current Operating Margin % is 10.22% as of May. 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 Kawakami Paint Manufacturing Co (TSE:4616) Overvalued in 2026?
Based on GuruFocus' analysis, Kawakami Paint Manufacturing Co stock appears to be overvalued.
The current stock price of 円2,135.00 is trading 22.9% above its estimated GF Value™ of 円1,737.12.
GuruFocus considers Kawakami Paint Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSE:4616:
Operating Margin %: 10.22% (244% above median its 10-year median of 2.97)
GF Value™: 円1,737.12 vs. price of 円2,135.00 (22.9% above fair value)
Industry Position: 49.4% above the Chemicals median (#994 of 1585)
No single metric tells the full story. See the TSE:4616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawakami Paint Manufacturing Co Ltd is engaged in manufacturing and selling various paints in Japan. Its products include heat insulation paints, ultra-low temperature powder, and water-based paints; and general purpose building paints, as well as floor coatings, building interior and exterior paints, aqueous paint, and rustproof paint.
63GF Score
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