Japan Insulation CoTSE:5368 +0.83%68 Operating Margin % is 12.83% as of Mar. 2026, which is 3% below its 10-year median of 13.18. GuruFocus rates TSE:5368 with a GF Score™ of 68/100 and a GF Value™ of 円1,104.28 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 3,033 Industrial Products companies, Japan Insulation Co ranks better than 71.02% on this metric.
Japan Insulation Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -7.9%.
The historical rank and industry rank for Japan Insulation Co's Operating Margin % or its related term are showing as below:
TSE:5368'
s Operating Margin % Range Over the Past 10 Years
Min: 8.41 Med: 13.18 Max: 15.88
Current: 11.2
TSE:5368's Operating Margin % is ranked better than 71.02% of 3033
companies
in the Industrial Products industry
Industry Median: 6.5
vs TSE:5368: 11.20
Japan Insulation Co's 5-Year Average Operating Margin % Growth Rate was -7.90% per year.
Japan Insulation Co (TSE:5368) 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.
Japan Insulation Co Operating Margin % Related Terms
Japan Insulation Co Operating Margin % Historical Data
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The historical data trend for Japan Insulation 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:5368 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Japan Insulation 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.
Japan Insulation Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Japan Insulation Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Insulation Co's Operating Margin % falls into.
Japan Insulation Co Operating Margin % Calculation
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.
Japan Insulation Co'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.
Japan Insulation Co (TSE:5368) has a Operating Margin % of 12.83% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Insulation Co and its competitors. This is near median its historical median of 13.18. Over the past decade, Japan Insulation Co's Operating Margin % has ranged from 8.41 to 15.88. According to the industry distribution chart, Japan Insulation Co ranks #879 out of 3033 companies in the Industrial Products industry, placing it in the top 29%.
Is Japan Insulation Co's Operating Margin % too high?
Japan Insulation Co's current Operating Margin % of 12.83% is near median its 10-year median of 13.18. Over the past 10 years, this metric has ranged from a low of 8.41 to a high of 15.88. The Industrial Products industry median Operating Margin % is 6.50. Japan Insulation Co's value of 12.83% is 97.4% above this industry median. Based on the distribution chart, Japan Insulation Co ranks #879 out of 3033 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Japan Insulation Co has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japan Insulation Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Japan Insulation Co ranks #879 out of 3033 companies for Operating Margin %. This puts Japan Insulation Co in the upper half of its industry. The industry median Operating Margin % is 6.50. Japan Insulation Co's value of 12.83% is 97.4% above this benchmark. Historically, Japan Insulation Co's own Operating Margin % has ranged from 8.41 to 15.88 over the past decade. While the company's 10-year median is 13.18 vs. the industry median of 6.50, Japan Insulation Co 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.50, based on 3,033 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. Japan Insulation Co's current Operating Margin % of 12.83% is 97.4% 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 Japan Insulation Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Insulation Co's current Operating Margin % is 12.83%, which is near median its own 10-year median of 13.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Insulation Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Insulation Co (TSE:5368) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,104.28, compared to a current price of 円977.00 — trading 11.5% below its estimated fair value. The current Operating Margin % is 12.83%, which is near median its 10-year median of 13.18 and 97.4% above the Industrial Products industry median of 6.50. Japan Insulation Co's overall GF Score™ is 68/100 with 2 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 Japan Insulation Co (TSE:5368), the current Operating Margin % is 12.83% 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 Japan Insulation Co (TSE:5368) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Insulation Co stock appears to be undervalued.
The current stock price of 円977.00 is trading 11.5% below its estimated GF Value™ of 円1,104.28.
GuruFocus considers Japan Insulation Co to be Modestly Undervalued.
Key valuation signals for TSE:5368:
Operating Margin %: 12.83% (near median its 10-year median of 13.18)
GF Value™: 円1,104.28 vs. price of 円977.00 (11.5% below fair value)
Industry Position: 97.4% above the Industrial Products median (#879 of 3033)
No single metric tells the full story. See the TSE:5368 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Insulation Co Ltd is engaged in the manufacturing and sale of heat-insulating materials made from Xonotlite-type calcium silicate. The company develops, produces, and sells disaster prevention materials to disturb a fire, including fireproof and non-combustible materials for buildings, non-combustible interior materials for ships, thermal insulation materials for plant equipment, fireproof materials for telecommunication cables for bridges and tunnels, boards for processing sculptures and signboards, and lightweight and heat resistant inorganic powder.
68GF Score
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