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Nac CoTSE:9788 +0.57%69 Operating Margin % is 7.22% as of Mar. 2026, which is 71% above its 10-year median of 4.23. GuruFocus rates TSE:9788 with a GF Score™ of 69/100 and a GF Value™ of 円588.40 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,768 Construction companies, Nac Co ranks worse than 60.58% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Nac Co's Operating Income for the
three
months ended in Mar. 2026 was 円1,205 Mil. Nac Co's Revenue for the
three
months ended in Mar. 2026 was 円16,690 Mil. Therefore, Nac Co's Operating Margin % for the quarter that ended in Mar. 2026 was 7.22%.
Warning Sign:
Nac Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.3%.
The historical rank and industry rank for Nac Co's Operating Margin % or its related term are showing as below:
TSE:9788'
s Operating Margin % Range Over the Past 10 Years
Min: 0.89 Med: 4.23 Max: 5.67
Current: 4.22
TSE:9788's Operating Margin % is ranked worse than 60.58% of 1768
companies
in the Construction industry
Industry Median: 5.885
vs TSE:9788: 4.22
Nac Co's 5-Year Average Operating Margin % Growth Rate was -3.30% per year.
Nac Co's Operating Income for the
three
months ended in Mar. 2026 was 円1,205 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円2,487 Mil.
Nac Co (TSE:9788) 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.
Nac Co Operating Margin % Related Terms
Nac Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nac 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:9788 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Nac 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.
Nac Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Nac Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nac 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.
Nac 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.
Nac Co (TSE:9788) has a Operating Margin % of 7.22% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nac Co and its competitors. This is 71% above median its historical median of 4.23. Over the past decade, Nac Co's Operating Margin % has ranged from 0.89 to 5.67. According to the industry distribution chart, Nac Co ranks #1071 out of 1768 companies in the Construction industry, placing it in the top 60.6%.
Is Nac Co's Operating Margin % too high?
Nac Co's current Operating Margin % of 7.22% is 71% above median its 10-year median of 4.23. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 5.67. The Construction industry median Operating Margin % is 5.89. Nac Co's value of 7.22% is 22.7% above this industry median. Based on the distribution chart, Nac Co ranks #1071 out of 1768 companies in the Construction industry, which is below the industry midpoint. Overall, Nac Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nac Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Nac Co ranks #1071 out of 1768 companies for Operating Margin %. This places Nac Co in the lower half of its industry. The industry median Operating Margin % is 5.89. Nac Co's value of 7.22% is 22.7% above this benchmark. Historically, Nac Co's own Operating Margin % has ranged from 0.89 to 5.67 over the past decade. While the company's 10-year median is 4.23 vs. the industry median of 5.89, Nac 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,768 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. Nac Co's current Operating Margin % of 7.22% is 22.7% 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 Nac Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nac Co's current Operating Margin % is 7.22%, which is 71% above median its own 10-year median of 4.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nac Co stock overvalued right now?
Based on GuruFocus' analysis, Nac Co (TSE:9788) is currently considered Fairly Valued. The stock's GF Value™ is 円588.40, compared to a current price of 円533.00 — trading 9.4% below its estimated fair value. The current Operating Margin % is 7.22%, which is 71% above median its 10-year median of 4.23 and 22.7% above the Construction industry median of 5.89. Nac Co's overall GF Score™ is 69/100 with 3 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 Nac Co (TSE:9788), the current Operating Margin % is 7.22% 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 Nac Co (TSE:9788) Overvalued in 2026?
Based on GuruFocus' analysis, Nac Co stock appears to be undervalued.
The current stock price of 円533.00 is trading 9.4% below its estimated GF Value™ of 円588.40.
GuruFocus considers Nac Co to be Fairly Valued.
Key valuation signals for TSE:9788:
Operating Margin %: 7.22% (71% above median its 10-year median of 4.23)
GF Value™: 円588.40 vs. price of 円533.00 (9.4% below fair value)
Industry Position: 22.7% above the Construction median (#1071 of 1768)
No single metric tells the full story. See the TSE:9788 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nac Co Ltd engages in the operation of housing maintenance and construction business in Japan. The company's operating division include Production and sales of home delivery water, Rental business, Construction consulting business, Housing business, and Beauty and health business.
69GF 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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