Natoco CoTSE:4627 -0.06%76 Operating Margin % is 7.51% as of Apr. 2026, which is 12% below its 10-year median of 8.54. GuruFocus rates TSE:4627 with a GF Score™ of 76/100 and a GF Value™ of 円1,640.84 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,577 Chemicals companies, Natoco Co ranks better than 55.29% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Natoco Co's Operating Income for the
six
months ended in Apr. 2026 was 円865 Mil. Natoco Co's Revenue for the
six
months ended in Apr. 2026 was 円11,514 Mil. Therefore, Natoco Co's Operating Margin % for the quarter that ended in Apr. 2026 was 7.51%.
Warning Sign:
Natoco Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.2%.
The historical rank and industry rank for Natoco Co's Operating Margin % or its related term are showing as below:
TSE:4627'
s Operating Margin % Range Over the Past 10 Years
Min: 5.94 Med: 8.54 Max: 10.63
Current: 7.09
TSE:4627's Operating Margin % is ranked better than 55.29% of 1577
companies
in the Chemicals industry
Industry Median: 6.03
vs TSE:4627: 7.09
Natoco Co's 5-Year Average Operating Margin % Growth Rate was -10.20% per year.
Natoco Co's Operating Income for the
six
months ended in Apr. 2026 was 円865 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was 円1,615 Mil.
Natoco Co (TSE:4627) 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.
Natoco Co Operating Margin % Related Terms
Natoco Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Natoco 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.
TSE:4627 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Natoco 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.
Natoco Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Natoco Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Natoco 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.
Natoco Co's Operating Margin % for the fiscal year that ended in Oct. 2025 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.
Natoco Co (TSE:4627) has a Operating Margin % of 7.51% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Natoco Co and its competitors. This is 12% below median its historical median of 8.54. Over the past decade, Natoco Co's Operating Margin % has ranged from 5.94 to 10.63. According to the industry distribution chart, Natoco Co ranks #705 out of 1577 companies in the Chemicals industry, placing it in the top 44.7%.
Is Natoco Co's Operating Margin % too high?
Natoco Co's current Operating Margin % of 7.51% is 12% below median its 10-year median of 8.54. Over the past 10 years, this metric has ranged from a low of 5.94 to a high of 10.63. The Chemicals industry median Operating Margin % is 6.03. Natoco Co's value of 7.51% is 24.5% above this industry median. Based on the distribution chart, Natoco Co ranks #705 out of 1577 companies in the Chemicals industry, which is above the industry midpoint. Overall, Natoco Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natoco Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Natoco Co ranks #705 out of 1577 companies for Operating Margin %. This puts Natoco Co in the upper half of its industry. The industry median Operating Margin % is 6.03. Natoco Co's value of 7.51% is 24.5% above this benchmark. Historically, Natoco Co's own Operating Margin % has ranged from 5.94 to 10.63 over the past decade. While the company's 10-year median is 8.54 vs. the industry median of 6.03, Natoco 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. Natoco Co's current Operating Margin % of 7.51% is 24.5% 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 Natoco 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. Natoco Co's current Operating Margin % is 7.51%, which is 12% below median its own 10-year median of 8.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natoco Co stock overvalued right now?
Based on GuruFocus' analysis, Natoco Co (TSE:4627) is currently considered Fairly Valued. The stock's GF Value™ is 円1,640.84, compared to a current price of 円1,754.00 — trading 6.9% above its estimated fair value. The current Operating Margin % is 7.51%, which is 12% below median its 10-year median of 8.54 and 24.5% above the Chemicals industry median of 6.03. Natoco Co's overall GF Score™ is 76/100 with 5 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 Natoco Co (TSE:4627), the current Operating Margin % is 7.51% as of Apr. 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 Natoco Co (TSE:4627) Overvalued in 2026?
Based on GuruFocus' analysis, Natoco Co stock appears to be overvalued.
The current stock price of 円1,754.00 is trading 6.9% above its estimated GF Value™ of 円1,640.84.
GuruFocus considers Natoco Co to be Fairly Valued.
Key valuation signals for TSE:4627:
Operating Margin %: 7.51% (12% below median its 10-year median of 8.54)
GF Value™: 円1,640.84 vs. price of 円1,754.00 (6.9% above fair value)
Industry Position: 24.5% above the Chemicals median (#705 of 1577)
No single metric tells the full story. See the TSE:4627 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natoco Co Ltd is engaged in the business of manufacturing and sales of paints, ink, plastics, and fine chemical products and sales of related products. It also engaged in the collection, transportation, and disposal of industrial waste products. Its other products include such as toning system, general purpose thinner, environment compatible equipment.
76GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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