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Nippon Seiro CoTSE:5010 +0.84%42 Operating Margin % is 4.51% as of Dec. 2025, which is 227% above its 10-year median of 1.38. GuruFocus rates TSE:5010 with a GF Score™ of 42/100 and a GF Value™ of 円118.10 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 929 Oil & Gas companies, Nippon Seiro Co ranks worse than 50.48% on this metric.
Nippon Seiro Co (TSE:5010) 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.
Nippon Seiro Co Operating Margin % Related Terms
Nippon Seiro Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Seiro 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:5010 vs MPC, VLO, PSX: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Nippon Seiro 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.
Nippon Seiro Co Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Nippon Seiro Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Seiro 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.
Nippon Seiro Co's Operating Margin % for the fiscal year that ended in Dec. 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.
Nippon Seiro Co (TSE:5010) has a Operating Margin % of 4.51% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Seiro Co and its competitors. This is 227% above median its historical median of 1.38. According to the industry distribution chart, Nippon Seiro Co ranks #469 out of 929 companies in the Oil & Gas industry, placing it in the top 50.5%.
Is Nippon Seiro Co's Operating Margin % too high?
Nippon Seiro Co's current Operating Margin % of 4.51% is 227% above median its 10-year median of 1.38. The Oil & Gas industry median Operating Margin % is 7.17. Nippon Seiro Co's value of 4.51% is 37.1% below this industry median. Based on the distribution chart, Nippon Seiro Co ranks #469 out of 929 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Nippon Seiro Co has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Seiro Co's Operating Margin % compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Nippon Seiro Co ranks #469 out of 929 companies for Operating Margin %. This places Nippon Seiro Co in the lower half of its industry. The industry median Operating Margin % is 7.17. Nippon Seiro Co's value of 4.51% is 37.1% below this benchmark. While the company's 10-year median is 1.38 vs. the industry median of 7.17, Nippon Seiro Co has consistently been below 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 an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 7.17, based on 929 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. Nippon Seiro Co's current Operating Margin % of 4.51% is 37.1% below 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 Nippon Seiro Co and its competitors. For the Oil & Gas industry, the median Operating Margin % is 7.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Seiro Co's current Operating Margin % is 4.51%, which is 227% above median its own 10-year median of 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Seiro Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Seiro Co (TSE:5010) is currently considered Significantly Overvalued. The stock's GF Value™ is 円118.10, compared to a current price of 円239.00 — trading 102.4% above its estimated fair value. The current Operating Margin % is 4.51%, which is 227% above median its 10-year median of 1.38 and 37.1% below the Oil & Gas industry median of 7.17. Nippon Seiro Co's overall GF Score™ is 42/100 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 Nippon Seiro Co (TSE:5010), the current Operating Margin % is 4.51% as of Dec. 2025. 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 Nippon Seiro Co (TSE:5010) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Seiro Co stock appears to be overvalued.
The current stock price of 円239.00 is trading 102.4% above its estimated GF Value™ of 円118.10.
GuruFocus considers Nippon Seiro Co to be Significantly Overvalued.
Key valuation signals for TSE:5010:
Operating Margin %: 4.51% (227% above median its 10-year median of 1.38)
GF Value™: 円118.10 vs. price of 円239.00 (102.4% above fair value)
Industry Position: 37.1% below the Oil & Gas median (#469 of 929)
No single metric tells the full story. See the TSE:5010 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Seiro Co Ltd is engaged in the manufacturing and sales of petroleum waxes, physically and chemically converted wax products and fuel oil in Japan. The company offers paraffin and microcrystalline wax products, as well as special wax products. These products are used in various applications, such as hotmelt adhesives, paper cups, plastic lubricants, paper converting, rubber antiozonants, and electric insulation.
42GF Score
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