Howa Machinery (TSE:6203) EBIT: 円1,393 Mil (TTM As of Mar. 2026)


TSE:6203 Howa Machinery Ltd TSE:6203
64 GF Score
Price 円1,607.00
GF Value 円1,026.42
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Howa Machinery EBIT?

Howa Machinery TSE:6203 +1.64% 64 EBIT is 円1,393 Mil as of Mar. 2026. GuruFocus rates TSE:6203 with a GF Score™ of 64/100 and a GF Value™ of 円1,026.42 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Howa Machinery's earnings before interest and taxes (EBIT) for the six months ended in Mar. 2026 was 円942 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,393 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Howa Machinery's annualized ROC % for the quarter that ended in Mar. 2026 was 4.41%. Howa Machinery's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 13.66%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Howa Machinery's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.34%.


Howa Machinery  (TSE:6203) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Howa Machinery's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1608 * ( 1 - 30.6% )/( (25077 + 25587)/ 2 )
=1115.952/25332
=4.41 %

where

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Howa Machinery's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1884/( ( (4900 + max(9973, 0)) + (4812 + max(7907, 0)) )/ 2 )
=1884/( ( 14873 + 12719 )/ 2 )
=1884/13796
=13.66 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7330 + 5795 + 1878) - (3414 + 0 + 1616)
=9973

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4747 + 5189 + 2801) - (3047 + 0 + 1783)
=7907

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Howa Machinery's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=1393/18968.491
=7.34 %

* 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.


Howa Machinery EBIT Related Terms


Howa Machinery EBIT Historical Data

* Premium members only.

The historical data trend for Howa Machinery's EBIT 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.

Howa Machinery EBIT Chart

Howa Machinery Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,311.00 638.00 -851.00 1,242.00 1,393.00

Howa Machinery Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1,119.00 672.00 570.00 451.00 942.00

TSE:6203 vs GEV, ETN, PH: EBIT Comparison

For the Specialty Industrial Machinery subindustry, Howa Machinery's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.


Howa Machinery EV-to-EBIT vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Howa Machinery's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Howa Machinery's EV-to-EBIT falls into.


TSE:6203
64GF Score
Howa Machinery Ltd TSE:6203
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Howa Machinery EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円1,393 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of 円1,393 Mil mean?
Howa Machinery (TSE:6203) has a EBIT of 円1,393 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Howa Machinery.
Is Howa Machinery's EBIT too high?
Howa Machinery's current EBIT is 円1,393 Mil. Overall, Howa Machinery has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howa Machinery's EBIT compare to GEV and ETN?
Howa Machinery's EBIT of 円1,393 Mil can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Industrial Products company?
A good EBIT depends on the Industrial Products industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Howa Machinery. Howa Machinery's current EBIT is 円1,393 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howa Machinery stock overvalued right now?
Based on GuruFocus' analysis, Howa Machinery (TSE:6203) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,026.42, compared to a current price of 円1,607.00 — trading 56.6% above its estimated fair value. The current EBIT is 円1,393 Mil. Howa Machinery's overall GF Score™ is 64/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Howa Machinery (TSE:6203), the current EBIT is 円1,393 Mil 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 Howa Machinery (TSE:6203) Overvalued in 2026?

Based on GuruFocus' analysis, Howa Machinery stock appears to be overvalued. The current stock price of 円1,607.00 is trading 56.6% above its estimated GF Value™ of 円1,026.42. GuruFocus considers Howa Machinery to be Significantly Overvalued.

Key valuation signals for TSE:6203:

  • EBIT: 円1,393 Mil
  • GF Value™: 円1,026.42 vs. price of 円1,607.00 (56.6% above fair value)
  • GF Score™: 64/100 with 6 warning signs

No single metric tells the full story. See the TSE:6203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Howa Machinery Business Description

Address 1900-1, Sukaguchi, Kiyosu, Aichi, JPN
Howa Machinery Ltd engages in the manufacture and sale of machine tools, pneumatic and hydraulic equipment, electronic machines, firearms, construction materials and construction machinery.
64GF Score

Get the complete analysis for TSE:6203

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,607.00
Price
円1,026.42
GF Value