Hatsuho Shouji CoTSE:7425 +1.14%79 Operating Margin % is 3.46% as of Dec. 2025, which is 48% above its 10-year median of 2.33. GuruFocus rates TSE:7425 with a GF Score™ of 79/100 and a GF Value™ of 円872.77 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 611 Steel companies, Hatsuho Shouji Co ranks better than 53.68% on this metric.
Hatsuho Shouji Co (TSE:7425) 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.
Hatsuho Shouji Co Operating Margin % Related Terms
Hatsuho Shouji Co Operating Margin % Historical Data
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The historical data trend for Hatsuho Shouji 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:7425 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Hatsuho Shouji 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.
Hatsuho Shouji Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Hatsuho Shouji Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hatsuho Shouji 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.
Hatsuho Shouji Co's Operating Margin % for the fiscal year that ended in Dec. 2025 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.
Hatsuho Shouji Co (TSE:7425) has a Operating Margin % of 3.46% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hatsuho Shouji Co and its competitors. This is 48% above median its historical median of 2.33. Over the past decade, Hatsuho Shouji Co's Operating Margin % has ranged from 1.37 to 4.13. According to the industry distribution chart, Hatsuho Shouji Co ranks #283 out of 611 companies in the Steel industry, placing it in the top 46.3%.
Is Hatsuho Shouji Co's Operating Margin % too high?
Hatsuho Shouji Co's current Operating Margin % of 3.46% is 48% above median its 10-year median of 2.33. Over the past 10 years, this metric has ranged from a low of 1.37 to a high of 4.13. The Steel industry median Operating Margin % is 3.01. Hatsuho Shouji Co's value of 3.46% is 15% above this industry median. Based on the distribution chart, Hatsuho Shouji Co ranks #283 out of 611 companies in the Steel industry, which is above the industry midpoint. Overall, Hatsuho Shouji Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hatsuho Shouji Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Hatsuho Shouji Co ranks #283 out of 611 companies for Operating Margin %. This puts Hatsuho Shouji Co in the upper half of its industry. The industry median Operating Margin % is 3.01. Hatsuho Shouji Co's value of 3.46% is 15% above this benchmark. Historically, Hatsuho Shouji Co's own Operating Margin % has ranged from 1.37 to 4.13 over the past decade. While the company's 10-year median is 2.33 vs. the industry median of 3.01, Hatsuho Shouji 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 3.01, based on 611 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. Hatsuho Shouji Co's current Operating Margin % of 3.46% is 15% 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 Hatsuho Shouji Co and its competitors. For the Steel industry, the median Operating Margin % is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hatsuho Shouji Co's current Operating Margin % is 3.46%, which is 48% above median its own 10-year median of 2.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hatsuho Shouji Co stock overvalued right now?
Based on GuruFocus' analysis, Hatsuho Shouji Co (TSE:7425) is currently considered Significantly Overvalued. The stock's GF Value™ is 円872.77, compared to a current price of 円1,242.00 — trading 42.3% above its estimated fair value. The current Operating Margin % is 3.46%, which is 48% above median its 10-year median of 2.33 and 15% above the Steel industry median of 3.01. Hatsuho Shouji Co's overall GF Score™ is 79/100 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 Hatsuho Shouji Co (TSE:7425), the current Operating Margin % is 3.46% as of Dec. 2025. 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 Hatsuho Shouji Co (TSE:7425) Overvalued in 2026?
Based on GuruFocus' analysis, Hatsuho Shouji Co stock appears to be overvalued.
The current stock price of 円1,242.00 is trading 42.3% above its estimated GF Value™ of 円872.77.
GuruFocus considers Hatsuho Shouji Co to be Significantly Overvalued.
Key valuation signals for TSE:7425:
Operating Margin %: 3.46% (48% above median its 10-year median of 2.33)
GF Value™: 円872.77 vs. price of 円1,242.00 (42.3% above fair value)
Industry Position: 15% above the Steel median (#283 of 611)
No single metric tells the full story. See the TSE:7425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hatsuho Shouji Co Ltd is a Japan-based company engages in the sale of secondary steel products and non-ferrous metals. Its products include light-weight steel frames, wire mesh for concrete, sheet rock, car ports, and other construction materials.
79GF Score
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