Nippon Gas CoTSE:8174 +0.43%83 Operating Margin % is 15.44% as of Mar. 2026, which is 69% above its 10-year median of 9.13. GuruFocus rates TSE:8174 with a GF Score™ of 83/100 and a GF Value™ of 円2,682.29 (Fairly Valued). The stock has 4 warning signs investors should review. Among 499 Utilities - Regulated companies, Nippon Gas Co ranks worse than 62.32% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Nippon Gas Co's Operating Income for the
three
months ended in Mar. 2026 was 円10,273 Mil. Nippon Gas Co's Revenue for the
three
months ended in Mar. 2026 was 円66,521 Mil. Therefore, Nippon Gas Co's Operating Margin % for the quarter that ended in Mar. 2026 was 15.44%.
Good Sign:
Nippon Gas Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Nippon Gas Co's Operating Margin % or its related term are showing as below:
TSE:8174'
s Operating Margin % Range Over the Past 10 Years
Min: 7.28 Med: 9.13 Max: 11.14
Current: 10.21
TSE:8174's Operating Margin % is ranked worse than 62.32% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs TSE:8174: 10.21
Nippon Gas Co's 5-Year Average Operating Margin % Growth Rate was 3.10% per year.
Nippon Gas Co's Operating Income for the
three
months ended in Mar. 2026 was 円10,273 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円21,284 Mil.
Nippon Gas Co (TSE:8174) 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.
Nippon Gas Co Operating Margin % Related Terms
Nippon Gas Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Gas 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:8174 vs ATO, NI: Operating Margin % Comparison
For the Utilities - Regulated Gas subindustry, Nippon Gas 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.
Nippon Gas Co Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Nippon Gas Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Gas 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.
Nippon Gas 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.
Nippon Gas Co (TSE:8174) has a Operating Margin % of 15.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Gas Co and its competitors. This is 69% above median its historical median of 9.13. Over the past decade, Nippon Gas Co's Operating Margin % has ranged from 7.28 to 11.14. According to the industry distribution chart, Nippon Gas Co ranks #311 out of 499 companies in the Utilities - Regulated industry, placing it in the top 62.3%.
Is Nippon Gas Co's Operating Margin % too high?
Nippon Gas Co's current Operating Margin % of 15.44% is 69% above median its 10-year median of 9.13. Over the past 10 years, this metric has ranged from a low of 7.28 to a high of 11.14. The Utilities - Regulated industry median Operating Margin % is 14.97. Nippon Gas Co's value of 15.44% is 3.1% above this industry median. Based on the distribution chart, Nippon Gas Co ranks #311 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Nippon Gas Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gas Co's Operating Margin % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Nippon Gas Co ranks #311 out of 499 companies for Operating Margin %. This places Nippon Gas Co in the lower half of its industry. The industry median Operating Margin % is 14.97. Nippon Gas Co's value of 15.44% is 3.1% above this benchmark. Historically, Nippon Gas Co's own Operating Margin % has ranged from 7.28 to 11.14 over the past decade. While the company's 10-year median is 9.13 vs. the industry median of 14.97, Nippon Gas 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Nippon Gas Co's current Operating Margin % of 15.44% is 3.1% 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 Nippon Gas Co and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Gas Co's current Operating Margin % is 15.44%, which is 69% above median its own 10-year median of 9.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gas Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gas Co (TSE:8174) is currently considered Fairly Valued. The stock's GF Value™ is 円2,682.29, compared to a current price of 円2,830.50 — trading 5.5% above its estimated fair value. The current Operating Margin % is 15.44%, which is 69% above median its 10-year median of 9.13 and 3.1% above the Utilities - Regulated industry median of 14.97. Nippon Gas Co's overall GF Score™ is 83/100 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 Nippon Gas Co (TSE:8174), the current Operating Margin % is 15.44% 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 Nippon Gas Co (TSE:8174) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Gas Co stock appears to be overvalued.
The current stock price of 円2,830.50 is trading 5.5% above its estimated GF Value™ of 円2,682.29.
GuruFocus considers Nippon Gas Co to be Fairly Valued.
Key valuation signals for TSE:8174:
Operating Margin %: 15.44% (69% above median its 10-year median of 9.13)
GF Value™: 円2,682.29 vs. price of 円2,830.50 (5.5% above fair value)
Industry Position: 3.1% above the Utilities - Regulated median (#311 of 499)
No single metric tells the full story. See the TSE:8174 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Gas Co Ltd, or Nichigas, is a Japanese supplier of gas primarily in the Kanto region of Japan. The company segments its operations into LP Gas, City Gas, Electricity, and Life Products Businesses. LP Gas and City Gas are Nichigas' core segments, which engage in the distribution and sale of liquefied petroleum gas, or LPG, and city gas for consumer usage. The company's total revenue is split between sales of LPG and city gas, with LPG generating slightly more. Roughly half of Nichigas' customers are residential consumers in terms of sales volume, while the other half are commercial entities. With its subsidiaries, the company is also involved in the distribution and sale of liquefied natural gas, high-pressure gas, and gas appliances.
83GF Score
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