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H2O RetailingTSE:8242 -0.23%69 Net Margin % is 0.59% as of Mar. 2026, which is 66% below its 10-year median of 1.75. GuruFocus rates TSE:8242 with a GF Score™ of 69/100 and a GF Value™ of 円2,112.85 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 311 Retail - Defensive companies, H2O Retailing ranks better than 76.53% on this metric.
Net margin is calculated as Net Income divided by its Revenue. H2O Retailing's Net Income for the
three
months ended in Mar. 2026 was 円971 Mil. H2O Retailing's Revenue for the
three
months ended in Mar. 2026 was 円164,351 Mil. Therefore, H2O Retailing's net margin for the quarter that ended in Mar. 2026 was 0.59%.
The historical rank and industry rank for H2O Retailing's Net Margin % or its related term are showing as below:
TSE:8242'
s Net Margin % Range Over the Past 10 Years
Min: -3.35 Med: 1.75 Max: 5.11
Current: 4.4
TSE:8242's Net Margin % is ranked better than 76.53% of 311
companies
in the Retail - Defensive industry
Industry Median: 2.08
vs TSE:8242: 4.40
H2O Retailing (TSE:8242) 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.
H2O Retailing Net Margin % Related Terms
H2O Retailing Net Margin % Historical Data
* Premium members only.
The historical data trend for H2O Retailing'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.
For the Grocery Stores subindustry, H2O Retailing'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.
H2O Retailing Net Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, H2O Retailing's Net Margin % distribution charts can be found below:
* The bar in red indicates where H2O Retailing'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.
H2O Retailing (TSE:8242) has a Net Margin % of 0.59% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on H2O Retailing and its competitors. This is 66% below median its historical median of 1.75. According to the industry distribution chart, H2O Retailing ranks #73 out of 311 companies in the Retail - Defensive industry, placing it in the top 23.5%.
Is H2O Retailing's Net Margin % too high?
H2O Retailing's current Net Margin % of 0.59% is 66% below median its 10-year median of 1.75. The Retail - Defensive industry median Net Margin % is 2.08. H2O Retailing's value of 0.59% is 71.6% below this industry median. Based on the distribution chart, H2O Retailing ranks #73 out of 311 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, H2O Retailing has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does H2O Retailing's Net Margin % compare to KR?
According to the Retail - Defensive industry distribution chart, H2O Retailing ranks #73 out of 311 companies for Net Margin %. This places H2O Retailing in the top 24% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.08. H2O Retailing's value of 0.59% is 71.6% below this benchmark. While the company's 10-year median is 1.75 vs. the industry median of 2.08, H2O Retailing 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 Net Margin % for a Retail - Defensive company?
The median Net Margin % among Retail - Defensive companies is 2.08, based on 311 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. H2O Retailing's current Net Margin % of 0.59% is 71.6% 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 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 H2O Retailing and its competitors. For the Retail - Defensive industry, the median Net Margin % is 2.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O Retailing's current Net Margin % is 0.59%, which is 66% below median its own 10-year median of 1.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H2O Retailing stock overvalued right now?
Based on GuruFocus' analysis, H2O Retailing (TSE:8242) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,112.85, compared to a current price of 円2,838.50 — trading 34.3% above its estimated fair value. The current Net Margin % is 0.59%, which is 66% below median its 10-year median of 1.75 and 71.6% below the Retail - Defensive industry median of 2.08. H2O Retailing's overall GF Score™ is 69/100 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 H2O Retailing (TSE:8242), the current Net Margin % is 0.59% 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 H2O Retailing (TSE:8242) Overvalued in 2026?
Based on GuruFocus' analysis, H2O Retailing stock appears to be overvalued.
The current stock price of 円2,838.50 is trading 34.3% above its estimated GF Value™ of 円2,112.85.
GuruFocus considers H2O Retailing to be Significantly Overvalued.
Key valuation signals for TSE:8242:
Net Margin %: 0.59% (66% below median its 10-year median of 1.75)
GF Value™: 円2,112.85 vs. price of 円2,838.50 (34.3% above fair value)
Industry Position: 71.6% below the Retail - Defensive median (#73 of 311)
No single metric tells the full story. See the TSE:8242 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H2O Retailing Corp is a Japan-based retailer that provides a broad range of merchandise to meet consumers' needs, from daily needs to special products. The company's core business is the department store business, which includes both the Hankyu and Hanshin department store chains. Superstore business is the company's another major business arm, including the Izumiya and Hankyu Oasis store chains. H2O Retailing also runs a specialty store business, engaged in providing cosmetics, ladies' footwear, and other products and services. In addition to retail businesses, the company operates other businesses as well, such as hotels and restaurants.
69GF Score
Get the complete analysis for TSE:8242
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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