Molitec Steel CoTSE:5986 -2.16%78 Operating Margin % is 1.73% as of Mar. 2026, which is 125% above its 10-year median of 0.77. GuruFocus rates TSE:5986 with a GF Score™ of 78/100 and a GF Value™ of 円205.21 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 612 Steel companies, Molitec Steel Co ranks worse than 66.5% on this metric.
Molitec Steel Co (TSE:5986) 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.
Molitec Steel Co Operating Margin % Related Terms
Molitec Steel Co Operating Margin % Historical Data
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The historical data trend for Molitec Steel 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:5986 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Molitec Steel 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.
Molitec Steel Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Molitec Steel Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Molitec Steel 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.
Molitec Steel 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.
Molitec Steel Co (TSE:5986) has a Operating Margin % of 1.73% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Molitec Steel Co and its competitors. This is 125% above median its historical median of 0.77. According to the industry distribution chart, Molitec Steel Co ranks #407 out of 612 companies in the Steel industry, placing it in the top 66.5%.
Is Molitec Steel Co's Operating Margin % too high?
Molitec Steel Co's current Operating Margin % of 1.73% is 125% above median its 10-year median of 0.77. The Steel industry median Operating Margin % is 2.99. Molitec Steel Co's value of 1.73% is 42.1% below this industry median. Based on the distribution chart, Molitec Steel Co ranks #407 out of 612 companies in the Steel industry, which is below the industry midpoint. Overall, Molitec Steel 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 Molitec Steel Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Molitec Steel Co ranks #407 out of 612 companies for Operating Margin %. This places Molitec Steel Co in the lower half of its industry. The industry median Operating Margin % is 2.99. Molitec Steel Co's value of 1.73% is 42.1% below this benchmark. While the company's 10-year median is 0.77 vs. the industry median of 2.99, Molitec Steel 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 612 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. Molitec Steel Co's current Operating Margin % of 1.73% is 42.1% 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 Molitec Steel Co and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Molitec Steel Co's current Operating Margin % is 1.73%, which is 125% above median its own 10-year median of 0.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Molitec Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Molitec Steel Co (TSE:5986) is currently considered Modestly Overvalued. The stock's GF Value™ is 円205.21, compared to a current price of 円227.00 — trading 10.6% above its estimated fair value. The current Operating Margin % is 1.73%, which is 125% above median its 10-year median of 0.77 and 42.1% below the Steel industry median of 2.99. Molitec Steel Co's overall GF Score™ is 78/100 with 5 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 Molitec Steel Co (TSE:5986), the current Operating Margin % is 1.73% 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 Molitec Steel Co (TSE:5986) Overvalued in 2026?
Based on GuruFocus' analysis, Molitec Steel Co stock appears to be overvalued.
The current stock price of 円227.00 is trading 10.6% above its estimated GF Value™ of 円205.21.
GuruFocus considers Molitec Steel Co to be Modestly Overvalued.
Key valuation signals for TSE:5986:
Operating Margin %: 1.73% (125% above median its 10-year median of 0.77)
GF Value™: 円205.21 vs. price of 円227.00 (10.6% above fair value)
Industry Position: 42.1% below the Steel median (#407 of 612)
No single metric tells the full story. See the TSE:5986 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Molitec Steel Co Ltd operates in the steel industry. The company is engaged in the business of processing and selling Cold Rolled Special Steel Strips, Stainless Steel Strips, and Various Steel Strips. The company is also involved in the manufacture and sale of various machinery tools, steel parts, plastic products and parts, and the import and export of merchandise.
78GF Score
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