Shin-Etsu Polymer CoTSE:7970 +2.13%90 Operating Margin % is 10.61% as of Mar. 2026, which is 5% above its 10-year median of 10.09. GuruFocus rates TSE:7970 with a GF Score™ of 90/100 and a GF Value™ of 円1,751.66 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,575 Chemicals companies, Shin-Etsu Polymer Co ranks better than 74.86% on this metric.
Shin-Etsu Polymer Co (TSE:7970) 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.
Shin-Etsu Polymer Co Operating Margin % Related Terms
Shin-Etsu Polymer Co Operating Margin % Historical Data
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The historical data trend for Shin-Etsu Polymer 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:7970 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Shin-Etsu Polymer 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.
Shin-Etsu Polymer Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shin-Etsu Polymer Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shin-Etsu Polymer Co's Operating Margin % falls into.
Shin-Etsu Polymer 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.
Shin-Etsu Polymer 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.
Shin-Etsu Polymer Co (TSE:7970) has a Operating Margin % of 10.61% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shin-Etsu Polymer Co and its competitors. This is near median its historical median of 10.09. Over the past decade, Shin-Etsu Polymer Co's Operating Margin % has ranged from 7.45 to 12.20. According to the industry distribution chart, Shin-Etsu Polymer Co ranks #396 out of 1575 companies in the Chemicals industry, placing it in the top 25.1%.
Is Shin-Etsu Polymer Co's Operating Margin % too high?
Shin-Etsu Polymer Co's current Operating Margin % of 10.61% is near median its 10-year median of 10.09. Over the past 10 years, this metric has ranged from a low of 7.45 to a high of 12.20. The Chemicals industry median Operating Margin % is 6.03. Shin-Etsu Polymer Co's value of 10.61% is 76% above this industry median. Based on the distribution chart, Shin-Etsu Polymer Co ranks #396 out of 1575 companies in the Chemicals industry, which is above the industry midpoint. Overall, Shin-Etsu Polymer Co has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shin-Etsu Polymer Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Shin-Etsu Polymer Co ranks #396 out of 1575 companies for Operating Margin %. This puts Shin-Etsu Polymer Co in the upper half of its industry. The industry median Operating Margin % is 6.03. Shin-Etsu Polymer Co's value of 10.61% is 76% above this benchmark. Historically, Shin-Etsu Polymer Co's own Operating Margin % has ranged from 7.45 to 12.20 over the past decade. While the company's 10-year median is 10.09 vs. the industry median of 6.03, Shin-Etsu Polymer 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,575 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. Shin-Etsu Polymer Co's current Operating Margin % of 10.61% is 76% 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 Shin-Etsu Polymer Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shin-Etsu Polymer Co's current Operating Margin % is 10.61%, which is near median its own 10-year median of 10.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shin-Etsu Polymer Co stock overvalued right now?
Based on GuruFocus' analysis, Shin-Etsu Polymer Co (TSE:7970) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,751.66, compared to a current price of 円2,442.00 — trading 39.4% above its estimated fair value. The current Operating Margin % is 10.61%, which is near median its 10-year median of 10.09 and 76% above the Chemicals industry median of 6.03. Shin-Etsu Polymer Co's overall GF Score™ is 90/100 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 Shin-Etsu Polymer Co (TSE:7970), the current Operating Margin % is 10.61% 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 Shin-Etsu Polymer Co (TSE:7970) Overvalued in 2026?
Based on GuruFocus' analysis, Shin-Etsu Polymer Co stock appears to be overvalued.
The current stock price of 円2,442.00 is trading 39.4% above its estimated GF Value™ of 円1,751.66.
GuruFocus considers Shin-Etsu Polymer Co to be Significantly Overvalued.
Key valuation signals for TSE:7970:
Operating Margin %: 10.61% (near median its 10-year median of 10.09)
GF Value™: 円1,751.66 vs. price of 円2,442.00 (39.4% above fair value)
Industry Position: 76% above the Chemicals median (#396 of 1575)
No single metric tells the full story. See the TSE:7970 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shin-Etsu Polymer Co Ltd manufactures polyvinyl and rubber products. The company develops applications for using the silicone and various plastics involving materials and compounding, design, molding processes, and evaluation and analysis and meets the needs of customers engaged in the field from automobiles and information devices to semiconductors and construction materials. Shin-Etsu sells its products mainly to the electronic devices industry, housing and living materials industry, precision molding products industry and others but majority of the revenues are derived from precision molding products which includes shipping and carrying containers for semiconductor silicon wafers, materials for automatic mounting of electronic components, office automation device components.
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