Arcs CoTSE:9948 +1.20%83 Net Margin % is 2.43% as of Feb. 2026, which is 23% above its 10-year median of 1.98. GuruFocus rates TSE:9948 with a GF Score™ of 83/100 and a GF Value™ of 円3,119.82 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,128 Retail - Cyclical companies, Arcs Co ranks worse than 52.39% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Arcs Co's Net Income for the
three
months ended in Feb. 2026 was 円3,947 Mil. Arcs Co's Revenue for the
three
months ended in Feb. 2026 was 円162,186 Mil. Therefore, Arcs Co's net margin for the quarter that ended in Feb. 2026 was 2.43%.
The historical rank and industry rank for Arcs Co's Net Margin % or its related term are showing as below:
TSE:9948'
s Net Margin % Range Over the Past 10 Years
Min: 1.32 Med: 1.98 Max: 2.33
Current: 1.99
TSE:9948's Net Margin % is ranked worse than 52.39% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 2.33
vs TSE:9948: 1.99
Arcs Co (TSE:9948) 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.
Arcs Co Net Margin % Related Terms
Arcs Co Net Margin % Historical Data
* Premium members only.
The historical data trend for Arcs 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.
For the Department Stores subindustry, Arcs 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.
Arcs Co Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Arcs Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Arcs 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.
Arcs Co (TSE:9948) has a Net Margin % of 2.43% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Arcs Co and its competitors. This is 23% above median its historical median of 1.98. Over the past decade, Arcs Co's Net Margin % has ranged from 1.32 to 2.33. According to the industry distribution chart, Arcs Co ranks #591 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 52.4%.
Is Arcs Co's Net Margin % too high?
Arcs Co's current Net Margin % of 2.43% is 23% above median its 10-year median of 1.98. Over the past 10 years, this metric has ranged from a low of 1.32 to a high of 2.33. The Retail - Cyclical industry median Net Margin % is 2.33. Arcs Co's value of 2.43% is 4.3% above this industry median. Based on the distribution chart, Arcs Co ranks #591 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Arcs 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 Arcs Co's Net Margin % compare to DDS?
According to the Retail - Cyclical industry distribution chart, Arcs Co ranks #591 out of 1128 companies for Net Margin %. This places Arcs Co in the lower half of its industry. The industry median Net Margin % is 2.33. Arcs Co's value of 2.43% is 4.3% above this benchmark. Historically, Arcs Co's own Net Margin % has ranged from 1.32 to 2.33 over the past decade. While the company's 10-year median is 1.98 vs. the industry median of 2.33, Arcs 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 Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.33, based on 1,128 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. Arcs Co's current Net Margin % of 2.43% is 4.3% 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 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 Arcs Co and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcs Co's current Net Margin % is 2.43%, which is 23% above median its own 10-year median of 1.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcs Co stock overvalued right now?
Based on GuruFocus' analysis, Arcs Co (TSE:9948) is currently considered Fairly Valued. The stock's GF Value™ is 円3,119.82, compared to a current price of 円3,380.00 — trading 8.3% above its estimated fair value. The current Net Margin % is 2.43%, which is 23% above median its 10-year median of 1.98 and 4.3% above the Retail - Cyclical industry median of 2.33. Arcs Co's overall GF Score™ is 83/100 with 1 warning sign 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 Arcs Co (TSE:9948), the current Net Margin % is 2.43% as of Feb. 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 Arcs Co (TSE:9948) Overvalued in 2026?
Based on GuruFocus' analysis, Arcs Co stock appears to be overvalued.
The current stock price of 円3,380.00 is trading 8.3% above its estimated GF Value™ of 円3,119.82.
GuruFocus considers Arcs Co to be Fairly Valued.
Key valuation signals for TSE:9948:
Net Margin %: 2.43% (23% above median its 10-year median of 1.98)
GF Value™: 円3,119.82 vs. price of 円3,380.00 (8.3% above fair value)
Industry Position: 4.3% above the Retail - Cyclical median (#591 of 1128)
No single metric tells the full story. See the TSE:9948 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arcs Co Ltd is a Japan-based company principally engaged in the supermarket business. The company also operates other businesses through subsidiaries, including tourism, building maintenance, real estate leasing, property and casualty insurance, life insurance agency, wholesale, food manufacturing, industrial and general waste collection, and construction businesses. The group operates in a single segment related to retail.
83GF Score
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