Net margin is calculated as Net Income divided by its Revenue. Kato Works Co's Net Income for the
three
months ended in Mar. 2026 was 円-1,105 Mil. Kato Works Co's Revenue for the
three
months ended in Mar. 2026 was 円19,034 Mil. Therefore, Kato Works Co's net margin for the quarter that ended in Mar. 2026 was -5.81%.
The historical rank and industry rank for Kato Works Co's Net Margin % or its related term are showing as below:
TSE:6390'
s Net Margin % Range Over the Past 10 Years
Min: -15.07 Med: 3.52 Max: 10.82
Current: 8.03
TSE:6390's Net Margin % is ranked better than 67.77% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 5.21
vs TSE:6390: 8.03
Kato Works Co (TSE:6390) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Kato Works Co Net Margin % Related Terms
Kato Works Co Net Margin % Historical Data
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The historical data trend for Kato Works Co's Net 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:6390 vs CAT, DE, PCAR: Net Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Kato Works Co's Net Margin %, along with its competitors' market caps and Net 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.
Kato Works Co Net Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Kato Works Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Kato Works Co's Net Margin % falls into.
* 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.
Kato Works Co (TSE:6390) has a Net Margin % of -5.81% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Kato Works Co and its competitors. According to the industry distribution chart, Kato Works Co ranks #68 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 32.2%.
Is Kato Works Co's Net Margin % too high?
Kato Works Co's current Net Margin % is -5.81%. Based on the distribution chart, Kato Works Co ranks #68 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Kato Works Co has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kato Works Co's Net Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Kato Works Co ranks #68 out of 211 companies for Net Margin %. This puts Kato Works Co in the upper half of its industry. The industry median Net Margin % is 5.21. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Farm & Heavy Construction Machinery company?
The median Net Margin % among Farm & Heavy Construction Machinery companies is 5.21, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Kato Works Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Net Margin % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kato Works Co's current Net Margin % is -5.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kato Works Co stock overvalued right now?
Based on GuruFocus' analysis, Kato Works Co (TSE:6390) is currently considered Fairly Valued. The stock's GF Value™ is 円1,345.13, compared to a current price of 円1,256.00 — trading 6.6% below its estimated fair value. The current Net Margin % is -5.81%. Kato Works Co's overall GF Score™ is 57/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Kato Works Co (TSE:6390), the current Net Margin % is -5.81% 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 Kato Works Co (TSE:6390) Overvalued in 2026?
Based on GuruFocus' analysis, Kato Works Co stock appears to be undervalued.
The current stock price of 円1,256.00 is trading 6.6% below its estimated GF Value™ of 円1,345.13.
GuruFocus considers Kato Works Co to be Fairly Valued.
Key valuation signals for TSE:6390:
Net Margin %: -5.81%
GF Value™: 円1,345.13 vs. price of 円1,256.00 (6.6% below fair value)
No single metric tells the full story. See the TSE:6390 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kato Works Co Ltd is a Japan-based machinery manufacturer. The company is mainly engaged in the manufacturing and sales of machinery used for the lifting and construction industries. It offers various construction equipment, mobile cranes, and industrial equipment, including truck cranes, hydraulic excavators, rough terrain cranes, all-terrain cranes, crawler cranes, mini excavators, earth boring rigs, vacuum trucks, street sweepers, and snow sweepers. Kato also offers related spare parts and services. The group's reportable segments are Japan, which is its key revenue-generating market, China, Europe, and Others.
57GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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