Sanyu CoTSE:5697 +0.43%78 Operating Margin % is 3.40% as of Mar. 2026, which is 21% above its 10-year median of 2.80. GuruFocus rates TSE:5697 with a GF Score™ of 78/100 and a GF Value™ of 円566.87 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 610 Steel companies, Sanyu Co ranks better than 54.26% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Sanyu Co's Operating Income for the
six
months ended in Mar. 2026 was 円439 Mil. Sanyu Co's Revenue for the
six
months ended in Mar. 2026 was 円12,900 Mil. Therefore, Sanyu Co's Operating Margin % for the quarter that ended in Mar. 2026 was 3.40%.
Good Sign:
Sanyu Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Sanyu Co's Operating Margin % or its related term are showing as below:
TSE:5697'
s Operating Margin % Range Over the Past 10 Years
Min: 0.86 Med: 2.8 Max: 5.09
Current: 3.47
TSE:5697's Operating Margin % is ranked better than 54.26% of 610
companies
in the Steel industry
Industry Median: 3
vs TSE:5697: 3.47
Sanyu Co's 5-Year Average Operating Margin % Growth Rate was 14.10% per year.
Sanyu Co's Operating Income for the
six
months ended in Mar. 2026 was 円439 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円887 Mil.
Sanyu Co (TSE:5697) 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.
Sanyu Co Operating Margin % Related Terms
Sanyu Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sanyu 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:5697 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Sanyu 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.
Sanyu Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Sanyu Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sanyu 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.
Sanyu 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.
Sanyu Co (TSE:5697) has a Operating Margin % of 3.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sanyu Co and its competitors. This is 21% above median its historical median of 2.80. Over the past decade, Sanyu Co's Operating Margin % has ranged from 0.86 to 5.09. According to the industry distribution chart, Sanyu Co ranks #279 out of 610 companies in the Steel industry, placing it in the top 45.7%.
Is Sanyu Co's Operating Margin % too high?
Sanyu Co's current Operating Margin % of 3.40% is 21% above median its 10-year median of 2.80. Over the past 10 years, this metric has ranged from a low of 0.86 to a high of 5.09. The Steel industry median Operating Margin % is 3.00. Sanyu Co's value of 3.40% is 13.3% above this industry median. Based on the distribution chart, Sanyu Co ranks #279 out of 610 companies in the Steel industry, which is above the industry midpoint. Overall, Sanyu Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sanyu Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Sanyu Co ranks #279 out of 610 companies for Operating Margin %. This puts Sanyu Co in the upper half of its industry. The industry median Operating Margin % is 3.00. Sanyu Co's value of 3.40% is 13.3% above this benchmark. Historically, Sanyu Co's own Operating Margin % has ranged from 0.86 to 5.09 over the past decade. While the company's 10-year median is 2.80 vs. the industry median of 3.00, Sanyu 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 a Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 610 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. Sanyu Co's current Operating Margin % of 3.40% is 13.3% 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 Sanyu Co and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanyu Co's current Operating Margin % is 3.40%, which is 21% above median its own 10-year median of 2.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanyu Co stock overvalued right now?
Based on GuruFocus' analysis, Sanyu Co (TSE:5697) is currently considered Modestly Overvalued. The stock's GF Value™ is 円566.87, compared to a current price of 円698.00 — trading 23.1% above its estimated fair value. The current Operating Margin % is 3.40%, which is 21% above median its 10-year median of 2.80 and 13.3% above the Steel industry median of 3.00. Sanyu Co's overall GF Score™ is 78/100 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 Sanyu Co (TSE:5697), the current Operating Margin % is 3.40% 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 Sanyu Co (TSE:5697) Overvalued in 2026?
Based on GuruFocus' analysis, Sanyu Co stock appears to be overvalued.
The current stock price of 円698.00 is trading 23.1% above its estimated GF Value™ of 円566.87.
GuruFocus considers Sanyu Co to be Modestly Overvalued.
Key valuation signals for TSE:5697:
Operating Margin %: 3.40% (21% above median its 10-year median of 2.80)
GF Value™: 円566.87 vs. price of 円698.00 (23.1% above fair value)
Industry Position: 13.3% above the Steel median (#279 of 610)
No single metric tells the full story. See the TSE:5697 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sanyu Co Ltd manufactures and sells general steel products. The company is engaged in manufacturing, processing and sales of cold heading steel wire Sales of general steel materials and related activities.
78GF 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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