The Why How Do Co (TSE:3823) Operating Income: 円-274 Mil (TTM As of Feb. 2026)

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TSE:3823 The Why How Do Co Inc TSE:3823
43 GF Score
Price 円30.00
GF Value 円67.34
Valuation Possible Value Trap
! 6 Warning Signs
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What is The Why How Do Co Operating Income?

The Why How Do Co TSE:3823 -3.23% 43 Operating Income is 円-274 Mil as of Feb. 2026. GuruFocus rates TSE:3823 with a GF Score™ of 43/100 and a GF Value™ of 円67.34 (Possible Value Trap). The stock has 6 warning signs investors should review.

The Why How Do Co's Operating Income for the three months ended in Feb. 2026 was 円-58 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円-274 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. The Why How Do Co's Operating Income for the three months ended in Feb. 2026 was 円-58 Mil. The Why How Do Co's Revenue for the three months ended in Feb. 2026 was 円892 Mil. Therefore, The Why How Do Co's Operating Margin % for the quarter that ended in Feb. 2026 was -6.45%.

Warning Sign:

The Why How Do Co Inc operating margin has been in a 5-year decline. The average rate of decline per year is -17.9%.

The Why How Do Co's 5-Year average Growth Rate for Operating Margin % was -17.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The Why How Do Co's annualized ROC % for the quarter that ended in Feb. 2026 was -11.47%. The Why How Do Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was -386.48%.


The Why How Do Co  (TSE:3823) Operating Income Explanation

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

The Why How Do Co'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: Nov. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=-230.128 * ( 1 - 0% )/( (2195.013 + 1816.521)/ 2 )
=-230.128/2005.767
=-11.47 %

where

Invested Capital(Q: Nov. 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))
=3980.355 - 461.431 - ( 1688.078 - max(0, 1070.398 - 2394.309+1688.078))
=2195.013

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))
=3345.155 - 282.896 - ( 1300.228 - max(0, 860.619 - 2106.357+1300.228))
=1816.521

Note: The Operating Income data used here is four times the quarterly (Feb. 2026) data.

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

The Why How Do Co'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: Nov. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1401.524/( ( (295.596 + max(-138.793, 0)) + (294.793 + max(134.896, 0)) )/ 2 )
=-1401.524/( ( 295.596 + 429.689 )/ 2 )
=-1401.524/362.6425
=-386.48 %

where Working Capital is:

Working Capital(Q: Nov. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(205.393 + 320.281 + 120.202) - (461.431 + 0 + 323.238)
=-138.793

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(201.306 + 331.866 + 193.744) - (282.896 + 0 + 309.124)
=134.896

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.

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

The Why How Do Co'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 )
=-57.532/892.344
=-6.45 %

* 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.


The Why How Do Co Operating Income Related Terms


The Why How Do Co Operating Income Historical Data

* Premium members only.

The historical data trend for The Why How Do 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.

The Why How Do Co Operating Income Chart

The Why How Do Co Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -431.86 -514.47 -161.59 -243.92 -247.94

The Why How Do Co Quarterly Data
Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Feb25 May25 Aug25 Nov25 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -48.64 -42.84 -125.01 -57.53
TSE:3823
43GF Score
The Why How Do Co Inc TSE:3823
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

The Why How Do 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 Feb. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円-274 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-274 Mil mean?
The Why How Do Co (TSE:3823) has a Operating Income of 円-274 Mil as of Feb. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on The Why How Do Co and its competitors.
Is The Why How Do Co's Operating Income too high?
The Why How Do Co's current Operating Income is 円-274 Mil. Overall, The Why How Do Co has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The Why How Do Co's Operating Income compare to QH and SHOP?
The Why How Do Co's Operating Income of 円-274 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 The Why How Do Co and its competitors. The Why How Do Co's current Operating Income is 円-274 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Why How Do Co stock overvalued right now?
Based on GuruFocus' analysis, The Why How Do Co (TSE:3823) is currently considered Possible Value Trap. The stock's GF Value™ is 円67.34, compared to a current price of 円30.00 — trading 55.4% below its estimated fair value. The current Operating Income is 円-274 Mil. The Why How Do Co's overall GF Score™ is 43/100 with 6 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 The Why How Do Co (TSE:3823), the current Operating Income is 円-274 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 The Why How Do Co (TSE:3823) Overvalued in 2026?

Based on GuruFocus' analysis, The Why How Do Co stock appears to be undervalued. The current stock price of 円30.00 is trading 55.4% below its estimated GF Value™ of 円67.34. GuruFocus considers The Why How Do Co to be Possible Value Trap.

Key valuation signals for TSE:3823:

  • Operating Income: 円-274 Mil
  • GF Value™: 円67.34 vs. price of 円30.00 (55.4% below fair value)
  • GF Score™: 43/100 with 6 warning signs

No single metric tells the full story. See the TSE:3823 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


The Why How Do Co Business Description

Address 22 Aizumi-cho, Daisan Yamada Building, Shinjuku-ku, Tokyo, JPN, 160-0005
The Why How Do Co Inc formerly Acrodea Inc is a software company. It is mainly engaged in the development of platform services for smartphones and IoT related solutions. In addition, the company provides social game and application related development and services.
43GF Score

Get the complete analysis for TSE:3823

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

円30.00
Price
円67.34
GF Value