Novac CoTSE:5079 +0.48%56 Operating Margin % is 4.55% as of Oct. 2025, which is 30% below its 10-year median of 6.50. GuruFocus rates TSE:5079 with a GF Score™ of 56/100 and a GF Value™ of 円3,312.10 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,764 Construction companies, Novac Co ranks worse than 63.78% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Novac Co's Operating Income for the
three
months ended in Oct. 2025 was 円399 Mil. Novac Co's Revenue for the
three
months ended in Oct. 2025 was 円8,776 Mil. Therefore, Novac Co's Operating Margin % for the quarter that ended in Oct. 2025 was 4.55%.
Warning Sign:
Novac Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -17.4%.
The historical rank and industry rank for Novac Co's Operating Margin % or its related term are showing as below:
TSE:5079'
s Operating Margin % Range Over the Past 10 Years
Min: 2.35 Med: 6.5 Max: 8.75
Current: 3.52
TSE:5079's Operating Margin % is ranked worse than 63.78% of 1764
companies
in the Construction industry
Industry Median: 5.89
vs TSE:5079: 3.52
Novac Co's 5-Year Average Operating Margin % Growth Rate was -17.40% per year.
Novac Co's Operating Income for the
three
months ended in Oct. 2025 was 円399 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2025 was 円618 Mil.
Novac Co (TSE:5079) 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.
Novac Co Operating Margin % Related Terms
Novac Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Novac 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:5079 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Novac 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.
Novac Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Novac Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Novac 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.
Novac Co's Operating Margin % for the fiscal year that ended in Apr. 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.
Novac Co (TSE:5079) has a Operating Margin % of 4.55% as of Oct. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Novac Co and its competitors. This is 30% below median its historical median of 6.50. Over the past decade, Novac Co's Operating Margin % has ranged from 2.35 to 8.75. According to the industry distribution chart, Novac Co ranks #1125 out of 1764 companies in the Construction industry, placing it in the top 63.8%.
Is Novac Co's Operating Margin % too high?
Novac Co's current Operating Margin % of 4.55% is 30% below median its 10-year median of 6.50. Over the past 10 years, this metric has ranged from a low of 2.35 to a high of 8.75. The Construction industry median Operating Margin % is 5.89. Novac Co's value of 4.55% is 22.8% below this industry median. Based on the distribution chart, Novac Co ranks #1125 out of 1764 companies in the Construction industry, which is below the industry midpoint. Overall, Novac Co has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Novac Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Novac Co ranks #1125 out of 1764 companies for Operating Margin %. This places Novac Co in the lower half of its industry. The industry median Operating Margin % is 5.89. Novac Co's value of 4.55% is 22.8% below this benchmark. Historically, Novac Co's own Operating Margin % has ranged from 2.35 to 8.75 over the past decade. While the company's 10-year median is 6.50 vs. the industry median of 5.89, Novac 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 a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,764 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. Novac Co's current Operating Margin % of 4.55% is 22.8% 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 Novac Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novac Co's current Operating Margin % is 4.55%, which is 30% below median its own 10-year median of 6.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novac Co stock overvalued right now?
Based on GuruFocus' analysis, Novac Co (TSE:5079) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,312.10, compared to a current price of 円2,508.00 — trading 24.3% below its estimated fair value. The current Operating Margin % is 4.55%, which is 30% below median its 10-year median of 6.50 and 22.8% below the Construction industry median of 5.89. Novac Co's overall GF Score™ is 56/100 with 7 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 Novac Co (TSE:5079), the current Operating Margin % is 4.55% as of Oct. 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 Novac Co (TSE:5079) Overvalued in 2026?
Based on GuruFocus' analysis, Novac Co stock appears to be undervalued.
The current stock price of 円2,508.00 is trading 24.3% below its estimated GF Value™ of 円3,312.10.
GuruFocus considers Novac Co to be Modestly Undervalued.
Key valuation signals for TSE:5079:
Operating Margin %: 4.55% (30% below median its 10-year median of 6.50)
GF Value™: 円3,312.10 vs. price of 円2,508.00 (24.3% below fair value)
Industry Position: 22.8% below the Construction median (#1125 of 1764)
No single metric tells the full story. See the TSE:5079 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novac Co Ltd is engaged in civil engineering, building construction, and other related activities. Its reportable segments are the civil engineering business and the construction works business. Maximum revenue is generated from the construction works business, which mainly carries out construction works based on orders received for apartment buildings, schools, welfare facilities, government buildings, offices, and highway service areas. The civil engineering business mainly carries out social infrastructure construction works (road construction, river construction, water supply and sewerage construction, land development construction) ordered by public agencies.
56GF Score
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