KGDEF (Kingdee International Software Group Co) Operating Income: $0.6 Mil (TTM As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

KGDEF Kingdee International Software Group Co Ltd KGDEF
62 GF Score
Price $0.75
GF Value $1.80
Valuation Significantly Undervalued
! 3 Warning Signs
View Full Analysis

What is Kingdee International Software Group Co Operating Income?

Kingdee International Software Group Co KGDEF -29.34% 62 Operating Income is $0.6 Mil as of Dec. 2025. GuruFocus rates KGDEF with a GF Score™ of 62/100 and a GF Value™ of $1.80 (Significantly Undervalued). The stock has 3 warning signs investors should review.

Kingdee International Software Group Co's Operating Income for the six months ended in Dec. 2025 was $29.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $0.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kingdee International Software Group Co's Operating Income for the six months ended in Dec. 2025 was $29.5 Mil. Kingdee International Software Group Co's Revenue for the six months ended in Dec. 2025 was $541.4 Mil. Therefore, Kingdee International Software Group Co's Operating Margin % for the quarter that ended in Dec. 2025 was 5.44%.

Kingdee International Software Group Co's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kingdee International Software Group Co's annualized ROC % for the quarter that ended in Dec. 2025 was 3.20%. Kingdee International Software Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 18.79%.


Kingdee International Software Group Co  (OTCPK:KGDEF) Operating Income Explanation

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

Kingdee International Software Group Co's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=58.904 * ( 1 - 0% )/( (1774.58 + 1908.443)/ 2 )
=58.904/1841.5115
=3.20 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1873.953 - 94.781 - ( 436.636 - max(0, 732.963 - 737.555+436.636))
=1774.58

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2070.946 - 136.17 - ( 516.722 - max(0, 800.419 - 826.752+516.722))
=1908.443

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

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

Kingdee International Software Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=49.428/( ( (251.394 + max(-517.531, 0)) + (274.8 + max(-601.456, 0)) )/ 2 )
=49.428/( ( 251.394 + 274.8 )/ 2 )
=49.428/263.097
=18.79 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(60.921 + 5.805 + 145.032) - (94.781 + 0 + 634.508)
=-517.531

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(58.524 + 8.654 + 128.56) - (136.17 + 0 + 661.024)
=-601.456

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Kingdee International Software Group Co's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=29.452/541.449
=5.44 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, 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 Nokia's Operating Margin had already been in decline since 2002, although its earnings per share 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.


Kingdee International Software Group Co Operating Income Related Terms


Kingdee International Software Group Co Operating Income Historical Data

* Premium members only.

The historical data trend for Kingdee International Software Group Co's Operating Income 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.

Kingdee International Software Group Co Operating Income Chart

Kingdee International Software Group Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -104.83 -100.21 -66.69 -34.96 0.03

Kingdee International Software Group Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income 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 -10.53 -45.46 10.34 -28.87 29.45
KGDEF
62GF Score
Kingdee International Software Group Co Ltd KGDEF
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kingdee International Software Group Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $0.6 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 Operating Income →
What does a Operating Income of $0.6 Mil mean?
Kingdee International Software Group Co (KGDEF) has a Operating Income of $0.6 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Kingdee International Software Group Co and its competitors.
Is Kingdee International Software Group Co's Operating Income too high?
Kingdee International Software Group Co's current Operating Income is $0.6 Mil. Overall, Kingdee International Software Group Co has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kingdee International Software Group Co's Operating Income compare to UBER and SHOP?
Kingdee International Software Group Co's Operating Income of $0.6 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Kingdee International Software Group Co and its competitors. Kingdee International Software Group Co's current Operating Income is $0.6 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kingdee International Software Group Co stock overvalued right now?
Based on GuruFocus' analysis, Kingdee International Software Group Co (KGDEF) is currently considered Significantly Undervalued. The stock's GF Value™ is $1.80, compared to a current price of $0.75 — trading 58.4% below its estimated fair value. The current Operating Income is $0.6 Mil. Kingdee International Software Group Co's overall GF Score™ is 62/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Kingdee International Software Group Co (KGDEF), the current Operating Income is $0.6 Mil as of Dec. 2025. 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 Kingdee International Software Group Co (KGDEF) Overvalued in 2026?

Based on GuruFocus' analysis, Kingdee International Software Group Co stock appears to be undervalued. The current stock price of $0.75 is trading 58.4% below its estimated GF Value™ of $1.80. GuruFocus considers Kingdee International Software Group Co to be Significantly Undervalued.

Key valuation signals for KGDEF:

  • Operating Income: $0.6 Mil
  • GF Value™: $1.80 vs. price of $0.75 (58.4% below fair value)
  • GF Score™: 62/100 with 3 warning signs

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


Kingdee International Software Group Co Business Description

Address Kingdee Software Park, No. 2 Kejinan 12 Road, South District, Hi-Tech Industrial Park, Nanshan District, Guangdong Province, Shenzhen, CHN
Kingdee International Software Group Co Ltd is engaged in cloud services, including enterprise cloud services, small & micro business finance cloud services, and industry cloud services; and enterprise resource planning business, including development and sales of software products. It has two operating segments: Subscription and software- Including subscriptions and sales of software, and Implementation, consulting, maintenance services, and others - including provision of subscription and software implementation services, software solution consulting, maintenance, upgrade, and other supporting services, and others.
62GF Score

Get the complete analysis for KGDEF

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

$0.75
Price
$1.80
GF Value