Taiheiyo CementTSE:5233 -2.01%76 Operating Margin % is 6.85% as of Mar. 2026, which is 6% below its 10-year median of 7.29. GuruFocus rates TSE:5233 with a GF Score™ of 76/100 and a GF Value™ of 円3,877.87 (Fairly Valued). The stock has 4 warning signs investors should review. Among 403 Building Materials companies, Taiheiyo Cement ranks better than 53.35% on this metric.
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.
Taiheiyo Cement Operating Margin % Related Terms
Taiheiyo Cement Operating Margin % Historical Data
* Premium members only.
The historical data trend for Taiheiyo Cement'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:5233 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Taiheiyo Cement'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.
Taiheiyo Cement Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Taiheiyo Cement's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taiheiyo Cement'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.
Taiheiyo Cement'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.
Taiheiyo Cement (TSE:5233) has a Operating Margin % of 6.85% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Taiheiyo Cement and its competitors. This is near median its historical median of 7.29. Over the past decade, Taiheiyo Cement's Operating Margin % has ranged from 0.55 to 8.67. According to the industry distribution chart, Taiheiyo Cement ranks #188 out of 403 companies in the Building Materials industry, placing it in the top 46.7%.
Is Taiheiyo Cement's Operating Margin % too high?
Taiheiyo Cement's current Operating Margin % of 6.85% is near median its 10-year median of 7.29. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 8.67. The Building Materials industry median Operating Margin % is 7.62. Taiheiyo Cement's value of 6.85% is 10.1% below this industry median. Based on the distribution chart, Taiheiyo Cement ranks #188 out of 403 companies in the Building Materials industry, which is above the industry midpoint. Overall, Taiheiyo Cement has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Taiheiyo Cement's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Taiheiyo Cement ranks #188 out of 403 companies for Operating Margin %. This puts Taiheiyo Cement in the upper half of its industry. The industry median Operating Margin % is 7.62. Taiheiyo Cement's value of 6.85% is 10.1% below this benchmark. Historically, Taiheiyo Cement's own Operating Margin % has ranged from 0.55 to 8.67 over the past decade. While the company's 10-year median is 7.29 vs. the industry median of 7.62, Taiheiyo Cement 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.62, based on 403 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. Taiheiyo Cement's current Operating Margin % of 6.85% is 10.1% 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 Taiheiyo Cement and its competitors. For the Building Materials industry, the median Operating Margin % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiheiyo Cement's current Operating Margin % is 6.85%, which is near median its own 10-year median of 7.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiheiyo Cement stock overvalued right now?
Based on GuruFocus' analysis, Taiheiyo Cement (TSE:5233) is currently considered Fairly Valued. The stock's GF Value™ is 円3,877.87, compared to a current price of 円4,090.00 — trading 5.5% above its estimated fair value. The current Operating Margin % is 6.85%, which is near median its 10-year median of 7.29 and 10.1% below the Building Materials industry median of 7.62. Taiheiyo Cement's overall GF Score™ is 76/100 with 4 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 Taiheiyo Cement (TSE:5233), the current Operating Margin % is 6.85% 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 Taiheiyo Cement (TSE:5233) Overvalued in 2026?
Based on GuruFocus' analysis, Taiheiyo Cement stock appears to be overvalued.
The current stock price of 円4,090.00 is trading 5.5% above its estimated GF Value™ of 円3,877.87.
GuruFocus considers Taiheiyo Cement to be Fairly Valued.
Key valuation signals for TSE:5233:
Operating Margin %: 6.85% (near median its 10-year median of 7.29)
GF Value™: 円3,877.87 vs. price of 円4,090.00 (5.5% above fair value)
Industry Position: 10.1% below the Building Materials median (#188 of 403)
No single metric tells the full story. See the TSE:5233 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiheiyo Cement Corp is a Japan-based company mainly engaged in the manufacture and sale of cement products. The company operates through four main segments. The Building Materials and Civil Engineering segment handles secondary concrete products and ALC (lightweight aerated concrete). The Cement segment covers various cement types and ready-mixed concrete. The Environmental Business focuses on waste recycling and desulfurization materials. The Resources segment deals with aggregates and limestone products. The Others segment includes real estate, engineering, information processing, finance, transportation, warehousing, chemical products, sports, and power supply. It generates the majority of its revenue from the Cement segment.
76GF Score
Get the complete analysis for TSE:5233
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:5233 has been successfully added to your 
