Tokai Carbon CoTSE:5301 -1.07%73 Operating Margin % is 5.31% as of Dec. 2025, which is 47% below its 10-year median of 9.98. GuruFocus rates TSE:5301 with a GF Score™ of 73/100 and a GF Value™ of 円995.76 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,584 Chemicals companies, Tokai Carbon Co ranks better than 57.64% on this metric.
Tokai Carbon Co (TSE:5301) 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.
Tokai Carbon Co Operating Margin % Related Terms
Tokai Carbon Co Operating Margin % Historical Data
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The historical data trend for Tokai Carbon 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:5301 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Tokai Carbon 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.
Tokai Carbon Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tokai Carbon Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Carbon 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.
Tokai Carbon 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.
Tokai Carbon Co (TSE:5301) has a Operating Margin % of 5.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tokai Carbon Co and its competitors. This is 47% below median its historical median of 9.98. Over the past decade, Tokai Carbon Co's Operating Margin % has ranged from 1.28 to 31.59. According to the industry distribution chart, Tokai Carbon Co ranks #671 out of 1584 companies in the Chemicals industry, placing it in the top 42.4%.
Is Tokai Carbon Co's Operating Margin % too high?
Tokai Carbon Co's current Operating Margin % of 5.31% is 47% below median its 10-year median of 9.98. Over the past 10 years, this metric has ranged from a low of 1.28 to a high of 31.59. The Chemicals industry median Operating Margin % is 6.03. Tokai Carbon Co's value of 5.31% is 11.9% below this industry median. Based on the distribution chart, Tokai Carbon Co ranks #671 out of 1584 companies in the Chemicals industry, which is above the industry midpoint. Overall, Tokai Carbon Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Carbon Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Tokai Carbon Co ranks #671 out of 1584 companies for Operating Margin %. This puts Tokai Carbon Co in the upper half of its industry. The industry median Operating Margin % is 6.03. Tokai Carbon Co's value of 5.31% is 11.9% below this benchmark. Historically, Tokai Carbon Co's own Operating Margin % has ranged from 1.28 to 31.59 over the past decade. While the company's 10-year median is 9.98 vs. the industry median of 6.03, Tokai Carbon 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 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. Tokai Carbon Co's current Operating Margin % of 5.31% is 11.9% 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 Tokai Carbon 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. Tokai Carbon Co's current Operating Margin % is 5.31%, which is 47% below median its own 10-year median of 9.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Carbon Co stock overvalued right now?
Based on GuruFocus' analysis, Tokai Carbon Co (TSE:5301) is currently considered Significantly Overvalued. The stock's GF Value™ is 円995.76, compared to a current price of 円1,709.50 — trading 71.7% above its estimated fair value. The current Operating Margin % is 5.31%, which is 47% below median its 10-year median of 9.98 and 11.9% below the Chemicals industry median of 6.03. Tokai Carbon Co's overall GF Score™ is 73/100 with 10 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 Tokai Carbon Co (TSE:5301), the current Operating Margin % is 5.31% 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 Tokai Carbon Co (TSE:5301) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Carbon Co stock appears to be overvalued.
The current stock price of 円1,709.50 is trading 71.7% above its estimated GF Value™ of 円995.76.
GuruFocus considers Tokai Carbon Co to be Significantly Overvalued.
Key valuation signals for TSE:5301:
Operating Margin %: 5.31% (47% below median its 10-year median of 9.98)
GF Value™: 円995.76 vs. price of 円1,709.50 (71.7% above fair value)
Industry Position: 11.9% below the Chemicals median (#671 of 1584)
No single metric tells the full story. See the TSE:5301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Carbon Co Ltd is a Japan-based manufacturer of carbon products which include, Carbon black, graphite electrodes, fine carbon friction material and manufactures industrial furnaces, and related products. It operates through three reportable segments, Carbon Black business, Carbon and Ceramics business, and Industrial Furnaces and Related Products business. Carbon black is mainly used as a reinforcing agent of industrial rubber products, typically auto tires. Carbon and Ceramics business segment produces artificial graphite electrodes for electric arc furnaces, fine carbon, carbon brush, impervious graphite, pencil lead-cores. Industrial Furnaces and Related Products segment include Industrial electric furnaces, gas furnaces, silicon carbide heating elements refractory, amongst others.
73GF Score
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