Japan Pulp and Paper CoTSE:8032 -0.37%67 Operating Margin % is 1.97% as of Mar. 2026, which is 3% below its 10-year median of 2.03. GuruFocus rates TSE:8032 with a GF Score™ of 67/100 and a GF Value™ of 円755.53 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 283 Forest Products companies, Japan Pulp and Paper Co ranks worse than 55.83% on this metric.
Japan Pulp and Paper Co (TSE:8032) 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.
Japan Pulp and Paper Co Operating Margin % Related Terms
Japan Pulp and Paper Co Operating Margin % Historical Data
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The historical data trend for Japan Pulp and Paper 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.
Japan Pulp and Paper Co Operating Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Japan Pulp and Paper 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.
Japan Pulp and Paper Co Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Japan Pulp and Paper Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Pulp and Paper Co's Operating Margin % falls into.
Japan Pulp and Paper 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.
Japan Pulp and Paper 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.
Japan Pulp and Paper Co (TSE:8032) has a Operating Margin % of 1.97% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Pulp and Paper Co and its competitors. This is near median its historical median of 2.03. Over the past decade, Japan Pulp and Paper Co's Operating Margin % has ranged from 1.69 to 3.72. According to the industry distribution chart, Japan Pulp and Paper Co ranks #158 out of 283 companies in the Forest Products industry, placing it in the top 55.8%.
Is Japan Pulp and Paper Co's Operating Margin % too high?
Japan Pulp and Paper Co's current Operating Margin % of 1.97% is near median its 10-year median of 2.03. Over the past 10 years, this metric has ranged from a low of 1.69 to a high of 3.72. The Forest Products industry median Operating Margin % is 2.60. Japan Pulp and Paper Co's value of 1.97% is 24.2% below this industry median. Based on the distribution chart, Japan Pulp and Paper Co ranks #158 out of 283 companies in the Forest Products industry, which is below the industry midpoint. Overall, Japan Pulp and Paper Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Pulp and Paper Co's Operating Margin % compare to competitors?
According to the Forest Products industry distribution chart, Japan Pulp and Paper Co ranks #158 out of 283 companies for Operating Margin %. This places Japan Pulp and Paper Co in the lower half of its industry. The industry median Operating Margin % is 2.60. Japan Pulp and Paper Co's value of 1.97% is 24.2% below this benchmark. Historically, Japan Pulp and Paper Co's own Operating Margin % has ranged from 1.69 to 3.72 over the past decade. While the company's 10-year median is 2.03 vs. the industry median of 2.60, Japan Pulp and Paper 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.60, based on 283 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. Japan Pulp and Paper Co's current Operating Margin % of 1.97% is 24.2% 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 Japan Pulp and Paper Co and its competitors. For the Forest Products industry, the median Operating Margin % is 2.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Pulp and Paper Co's current Operating Margin % is 1.97%, which is near median its own 10-year median of 2.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Pulp and Paper Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Pulp and Paper Co (TSE:8032) is currently considered Significantly Overvalued. The stock's GF Value™ is 円755.53, compared to a current price of 円1,068.00 — trading 41.4% above its estimated fair value. The current Operating Margin % is 1.97%, which is near median its 10-year median of 2.03 and 24.2% below the Forest Products industry median of 2.60. Japan Pulp and Paper Co's overall GF Score™ is 67/100 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 Japan Pulp and Paper Co (TSE:8032), the current Operating Margin % is 1.97% 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 Japan Pulp and Paper Co (TSE:8032) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Pulp and Paper Co stock appears to be overvalued.
The current stock price of 円1,068.00 is trading 41.4% above its estimated GF Value™ of 円755.53.
GuruFocus considers Japan Pulp and Paper Co to be Significantly Overvalued.
Key valuation signals for TSE:8032:
Operating Margin %: 1.97% (near median its 10-year median of 2.03)
GF Value™: 円755.53 vs. price of 円1,068.00 (41.4% above fair value)
Industry Position: 24.2% below the Forest Products median (#158 of 283)
No single metric tells the full story. See the TSE:8032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Pulp and Paper Co Ltd engages in the manufacture, distribution, and sale of pulp, paper-related products, and plastic, among others. Also, the company is involved in real estate leasing and generation and sale of electricity.
67GF 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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