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Takadakiko (Steel Construction) Co (TSE:5923) 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.
Takadakiko (Steel Construction) Co Operating Margin % Related Terms
Takadakiko (Steel Construction) Co Operating Margin % Historical Data
* 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.
Takadakiko (Steel Construction) Co Operating Margin % Chart
TSE:5923 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Takadakiko (Steel Construction) 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.
Takadakiko (Steel Construction) Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Takadakiko (Steel Construction) Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Takadakiko (Steel Construction) Co's Operating Margin % falls into.
Takadakiko (Steel Construction) 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.
* 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.
Takadakiko (Steel Construction) Co (TSE:5923) has a Operating Margin % of 1.29% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Takadakiko (Steel Construction) Co and its competitors. This is 74% below median its historical median of 4.97. According to the industry distribution chart, Takadakiko (Steel Construction) Co ranks #1466 out of 1773 companies in the Construction industry, placing it in the top 82.7%.
Is Takadakiko (Steel Construction) Co's Operating Margin % too high?
Takadakiko (Steel Construction) Co's current Operating Margin % of 1.29% is 74% below median its 10-year median of 4.97. The Construction industry median Operating Margin % is 5.92. Takadakiko (Steel Construction) Co's value of 1.29% is 78.2% below this industry median. Based on the distribution chart, Takadakiko (Steel Construction) Co ranks #1466 out of 1773 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Takadakiko (Steel Construction) Co has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Takadakiko (Steel Construction) Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Takadakiko (Steel Construction) Co ranks #1466 out of 1773 companies for Operating Margin %. This places Takadakiko (Steel Construction) Co in the lower half of its industry. The industry median Operating Margin % is 5.92. Takadakiko (Steel Construction) Co's value of 1.29% is 78.2% below this benchmark. While the company's 10-year median is 4.97 vs. the industry median of 5.92, Takadakiko (Steel Construction) 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 Construction company?
The median Operating Margin % among Construction companies is 5.92, based on 1,773 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. Takadakiko (Steel Construction) Co's current Operating Margin % of 1.29% is 78.2% 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 Takadakiko (Steel Construction) Co and its competitors. For the Construction industry, the median Operating Margin % is 5.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Takadakiko (Steel Construction) Co's current Operating Margin % is 1.29%, which is 74% below median its own 10-year median of 4.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Takadakiko (Steel Construction) Co stock overvalued right now?
Based on GuruFocus' analysis, Takadakiko (Steel Construction) Co (TSE:5923) is currently considered Modestly Overvalued. The stock's GF Value™ is 円908.36, compared to a current price of 円1,175.00 — trading 29.4% above its estimated fair value. The current Operating Margin % is 1.29%, which is 74% below median its 10-year median of 4.97 and 78.2% below the Construction industry median of 5.92. Takadakiko (Steel Construction) Co's overall GF Score™ is 62/100 with 4 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 Takadakiko (Steel Construction) Co (TSE:5923), the current Operating Margin % is 1.29% 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 Takadakiko (Steel Construction) Co (TSE:5923) Overvalued in 2026?
Based on GuruFocus' analysis, Takadakiko (Steel Construction) Co stock appears to be overvalued.
The current stock price of 円1,175.00 is trading 29.4% above its estimated GF Value™ of 円908.36.
GuruFocus considers Takadakiko (Steel Construction) Co to be Modestly Overvalued.
Key valuation signals for TSE:5923:
Operating Margin %: 1.29% (74% below median its 10-year median of 4.97)
GF Value™: 円908.36 vs. price of 円1,175.00 (29.4% above fair value)
Industry Position: 78.2% below the Construction median (#1466 of 1773)
No single metric tells the full story. See the TSE:5923 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Takadakiko (Steel Construction) Co Ltd formerly Takada Kiko Co Ltd is engaged in the designing, manufacturing, and installation of steel bridges, building construction, school gymnasiums, and installation work on upper part of steel bridge, pavement, work, signs, and protective fences.
62GF Score
Get the complete analysis for TSE:5923
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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