Sankei Real Estate (TSE:2972) Operating Income: 円2,958 Mil (TTM As of Feb. 2026)

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TSE:2972 Sankei Real Estate Inc TSE:2972
64 GF Score
Price 円108,400.00
GF Value 円85,345.15
Valuation Modestly Overvalued
! 9 Warning Signs
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What is Sankei Real Estate Operating Income?

Sankei Real Estate TSE:2972 -0.55% 64 Operating Income is 円2,958 Mil as of Feb. 2026. GuruFocus rates TSE:2972 with a GF Score™ of 64/100 and a GF Value™ of 円85,345.15 (Modestly Overvalued). The stock has 9 warning signs investors should review.

Sankei Real Estate's Operating Income for the six months ended in Feb. 2026 was 円1,610 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円2,958 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sankei Real Estate's Operating Income for the six months ended in Feb. 2026 was 円1,610 Mil. Sankei Real Estate's Revenue for the six months ended in Feb. 2026 was 円2,882 Mil. Therefore, Sankei Real Estate's Operating Margin % for the quarter that ended in Feb. 2026 was 55.88%.

Warning Sign:

Sankei Real Estate Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7.3%.

Sankei Real Estate's 5-Year average Growth Rate for Operating Margin % was -7.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sankei Real Estate's annualized ROC % for the quarter that ended in Feb. 2026 was 2.97%. Sankei Real Estate's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was -7.22%.


Sankei Real Estate  (TSE:2972) Operating Income Explanation

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

Sankei Real Estate's annualized ROC % for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=3220.762 * ( 1 - 0% )/( (110834.73 + 105768.997)/ 2 )
=3220.762/108301.8635
=2.97 %

where

Invested Capital(Q: Aug. 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))
=104898.938 - 550.985 - ( 8341.138 - max(0, 17401.276 - 10914.499+8341.138))
=110834.73

Invested Capital(Q: Feb. 2026 )
=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))
=99348.614 - 1003.636 - ( 8061.601 - max(0, 17828.196 - 10404.177+8061.601))
=105768.997

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

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

Sankei Real Estate's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Aug. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-6686.7/( ( (93906.367 + max(1572.085, 0)) + (88800.442 + max(914.38, 0)) )/ 2 )
=-6686.7/( ( 95478.452 + 89714.822 )/ 2 )
=-6686.7/92596.637
=-7.22 %

where Working Capital is:

Working Capital(Q: Aug. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(56.928 + 0 + 2516.433) - (550.985 + 0 + 450.291)
=1572.085

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(37.114 + 0 + 2305.462) - (1003.636 + 0 + 424.56)
=914.38

When net working capital is negative, 0 is used.

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

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

Sankei Real Estate's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Feb. 2026 )/Revenue (Q: Feb. 2026 )
=1610.381/2882.077
=55.88 %

* 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.


Sankei Real Estate Operating Income Related Terms


Sankei Real Estate Operating Income Historical Data

* Premium members only.

The historical data trend for Sankei Real Estate'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.

Sankei Real Estate Operating Income Chart

Sankei Real Estate Annual Data
Trend Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Operating Income
Get a 7-Day Free Trial 2,259.96 3,170.54 2,578.50 2,529.88 2,700.18

Sankei Real Estate Semi-Annual Data
Apr19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 1,229.91 1,299.97 1,352.49 1,347.69 1,610.38
TSE:2972
64GF Score
Sankei Real Estate Inc TSE:2972
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Sankei Real Estate 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 Feb. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円2,958 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 円2,958 Mil mean?
Sankei Real Estate (TSE:2972) has a Operating Income of 円2,958 Mil as of Feb. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sankei Real Estate and its competitors.
Is Sankei Real Estate's Operating Income too high?
Sankei Real Estate's current Operating Income is 円2,958 Mil. Overall, Sankei Real Estate has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sankei Real Estate's Operating Income compare to BXP and ARE?
Sankei Real Estate's Operating Income of 円2,958 Mil can be compared against companies in the REITs 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 REITs company?
A good Operating Income depends on the REITs 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 Sankei Real Estate and its competitors. Sankei Real Estate's current Operating Income is 円2,958 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sankei Real Estate stock overvalued right now?
Based on GuruFocus' analysis, Sankei Real Estate (TSE:2972) is currently considered Modestly Overvalued. The stock's GF Value™ is 円85,345.15, compared to a current price of 円108,400.00 — trading 27% above its estimated fair value. The current Operating Income is 円2,958 Mil. Sankei Real Estate's overall GF Score™ is 64/100 with 9 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 Sankei Real Estate (TSE:2972), the current Operating Income is 円2,958 Mil 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 Sankei Real Estate (TSE:2972) Overvalued in 2026?

Based on GuruFocus' analysis, Sankei Real Estate stock appears to be overvalued. The current stock price of 円108,400.00 is trading 27% above its estimated GF Value™ of 円85,345.15. GuruFocus considers Sankei Real Estate to be Modestly Overvalued.

Key valuation signals for TSE:2972:

  • Operating Income: 円2,958 Mil
  • GF Value™: 円85,345.15 vs. price of 円108,400.00 (27% above fair value)
  • GF Score™: 64/100 with 9 warning signs

No single metric tells the full story. See the TSE:2972 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sankei Real Estate Business Description

Industry Real EstateREITs
Address 2-3-4 Uchikanda, 4th floor, S-GATE Otemachi Kita, Chiyoda-ku, Tokyo, JPN, 100-0004
Sankei Real Estate Inc is a Japanese based J-REIT. The company is engaged in the leasing of real estate properties, and owns office buildings.
64GF Score

Get the complete analysis for TSE:2972

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

円108,400.00
Price
円85,345.15
GF Value