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SEC CARBONTSE:5304 +1.36%65 Operating Margin % is 13.36% as of Mar. 2026, which is 28% below its 10-year median of 18.66. GuruFocus rates TSE:5304 with a GF Score™ of 65/100 and a GF Value™ of 円1,601.46 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,578 Chemicals companies, SEC CARBON ranks better than 84.79% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SEC CARBON's Operating Income for the
three
months ended in Mar. 2026 was 円1,079 Mil. SEC CARBON's Revenue for the
three
months ended in Mar. 2026 was 円8,074 Mil. Therefore, SEC CARBON's Operating Margin % for the quarter that ended in Mar. 2026 was 13.36%.
Good Sign:
SEC CARBON Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for SEC CARBON's Operating Margin % or its related term are showing as below:
TSE:5304'
s Operating Margin % Range Over the Past 10 Years
Min: -18.61 Med: 18.66 Max: 44.62
Current: 15.97
TSE:5304's Operating Margin % is ranked better than 84.79% of 1578
companies
in the Chemicals industry
Industry Median: 6.04
vs TSE:5304: 15.97
SEC CARBON's 5-Year Average Operating Margin % Growth Rate was 6.10% per year.
SEC CARBON's Operating Income for the
three
months ended in Mar. 2026 was 円1,079 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円4,008 Mil.
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.
SEC CARBON Operating Margin % Related Terms
SEC CARBON Operating Margin % Historical Data
* Premium members only.
The historical data trend for SEC CARBON'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:5304 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, SEC CARBON'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.
SEC CARBON Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, SEC CARBON's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SEC CARBON'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.
SEC CARBON'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.
SEC CARBON (TSE:5304) has a Operating Margin % of 13.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SEC CARBON and its competitors. This is 28% below median its historical median of 18.66. According to the industry distribution chart, SEC CARBON ranks #240 out of 1578 companies in the Chemicals industry, placing it in the top 15.2%.
Is SEC CARBON's Operating Margin % too high?
SEC CARBON's current Operating Margin % of 13.36% is 28% below median its 10-year median of 18.66. The Chemicals industry median Operating Margin % is 6.04. SEC CARBON's value of 13.36% is 121.2% above this industry median. Based on the distribution chart, SEC CARBON ranks #240 out of 1578 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, SEC CARBON has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SEC CARBON's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, SEC CARBON ranks #240 out of 1578 companies for Operating Margin %. This places SEC CARBON in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.04. SEC CARBON's value of 13.36% is 121.2% above this benchmark. While the company's 10-year median is 18.66 vs. the industry median of 6.04, SEC CARBON 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 6.04, based on 1,578 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. SEC CARBON's current Operating Margin % of 13.36% is 121.2% 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 SEC CARBON and its competitors. For the Chemicals industry, the median Operating Margin % is 6.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SEC CARBON's current Operating Margin % is 13.36%, which is 28% below median its own 10-year median of 18.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SEC CARBON stock overvalued right now?
Based on GuruFocus' analysis, SEC CARBON (TSE:5304) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,601.46, compared to a current price of 円2,531.00 — trading 58% above its estimated fair value. The current Operating Margin % is 13.36%, which is 28% below median its 10-year median of 18.66 and 121.2% above the Chemicals industry median of 6.04. SEC CARBON's overall GF Score™ is 65/100 with 3 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 SEC CARBON (TSE:5304), the current Operating Margin % is 13.36% 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 SEC CARBON (TSE:5304) Overvalued in 2026?
Based on GuruFocus' analysis, SEC CARBON stock appears to be overvalued.
The current stock price of 円2,531.00 is trading 58% above its estimated GF Value™ of 円1,601.46.
GuruFocus considers SEC CARBON to be Significantly Overvalued.
Key valuation signals for TSE:5304:
Operating Margin %: 13.36% (28% below median its 10-year median of 18.66)
GF Value™: 円1,601.46 vs. price of 円2,531.00 (58% above fair value)
Industry Position: 121.2% above the Chemicals median (#240 of 1578)
No single metric tells the full story. See the TSE:5304 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SEC CARBON Ltd engages in the manufacture and sale of carbon products. It offers SK-B graphitized cathode blocks for aluminum smelting; graphite electrodes that are used in electric arc furnaces for steelmaking; and carbon and graphite specialties and materials for use in the semiconductor, aerospace, chemical, electrochemistry, machine, and metallurgy industries. The company also provides the fine powder that is used in various industries, such as paint, sliding materials, metallurgic uses, and batteries.
65GF Score
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