A&A MaterialTSE:5391 -0.07%71 Operating Margin % is 41.06% as of Mar. 2026, which is 604% above its 10-year median of 5.83. GuruFocus rates TSE:5391 with a GF Score™ of 71/100 and a GF Value™ of 円1,381.49 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,767 Construction companies, A&A Material ranks better than 92.87% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. A&A Material's Operating Income for the
six
months ended in Mar. 2026 was 円9,783 Mil. A&A Material's Revenue for the
six
months ended in Mar. 2026 was 円23,829 Mil. Therefore, A&A Material's Operating Margin % for the quarter that ended in Mar. 2026 was 41.06%.
Good Sign:
A&A Material Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for A&A Material's Operating Margin % or its related term are showing as below:
TSE:5391'
s Operating Margin % Range Over the Past 10 Years
Min: 3.8 Med: 5.83 Max: 22.83
Current: 22.83
TSE:5391's Operating Margin % is ranked better than 92.87% of 1767
companies
in the Construction industry
Industry Median: 5.89
vs TSE:5391: 22.83
A&A Material's 5-Year Average Operating Margin % Growth Rate was 31.00% per year.
A&A Material's Operating Income for the
six
months ended in Mar. 2026 was 円9,783 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円10,435 Mil.
A&A Material (TSE:5391) 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.
A&A Material Operating Margin % Related Terms
A&A Material Operating Margin % Historical Data
* Premium members only.
The historical data trend for A&A Material'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:5391 vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, A&A Material'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.
A&A Material Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, A&A Material's Operating Margin % distribution charts can be found below:
* The bar in red indicates where A&A Material'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.
A&A Material'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.
A&A Material (TSE:5391) has a Operating Margin % of 41.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on A&A Material and its competitors. This is 604% above median its historical median of 5.83. Over the past decade, A&A Material's Operating Margin % has ranged from 3.80 to 22.83. According to the industry distribution chart, A&A Material ranks #126 out of 1767 companies in the Construction industry, placing it in the top 7.1%.
Is A&A Material's Operating Margin % too high?
A&A Material's current Operating Margin % of 41.06% is 604% above median its 10-year median of 5.83. Over the past 10 years, this metric has ranged from a low of 3.80 to a high of 22.83. The Construction industry median Operating Margin % is 5.89. A&A Material's value of 41.06% is 597.1% above this industry median. Based on the distribution chart, A&A Material ranks #126 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, A&A Material has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does A&A Material's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, A&A Material ranks #126 out of 1767 companies for Operating Margin %. This places A&A Material in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. A&A Material's value of 41.06% is 597.1% above this benchmark. Historically, A&A Material's own Operating Margin % has ranged from 3.80 to 22.83 over the past decade. While the company's 10-year median is 5.83 vs. the industry median of 5.89, A&A Material 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. A&A Material's current Operating Margin % of 41.06% is 597.1% 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 A&A Material 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. A&A Material's current Operating Margin % is 41.06%, which is 604% above median its own 10-year median of 5.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is A&A Material stock overvalued right now?
Based on GuruFocus' analysis, A&A Material (TSE:5391) is currently considered Fairly Valued. The stock's GF Value™ is 円1,381.49, compared to a current price of 円1,433.00 — trading 3.7% above its estimated fair value. The current Operating Margin % is 41.06%, which is 604% above median its 10-year median of 5.83 and 597.1% above the Construction industry median of 5.89. A&A Material's overall GF Score™ is 71/100 with 6 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 A&A Material (TSE:5391), the current Operating Margin % is 41.06% 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 A&A Material (TSE:5391) Overvalued in 2026?
Based on GuruFocus' analysis, A&A Material stock appears to be overvalued.
The current stock price of 円1,433.00 is trading 3.7% above its estimated GF Value™ of 円1,381.49.
GuruFocus considers A&A Material to be Fairly Valued.
Key valuation signals for TSE:5391:
Operating Margin %: 41.06% (604% above median its 10-year median of 5.83)
GF Value™: 円1,381.49 vs. price of 円1,433.00 (3.7% above fair value)
Industry Position: 597.1% above the Construction median (#126 of 1767)
No single metric tells the full story. See the TSE:5391 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A&A Material Corp is engaged in the manufacturing and sales of various industrial materials/equipment such as industrial friction materials, sealing materials, thermal insulation materials, shipbuilding materials, soundproofing materials, and extension couplings. In addition, the company is involved in the design and implementation of thermal insulation, air conditioning, heat insulation, sound insulation, and fire resistant construction.
71GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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