Arakawa Chemical Industries (TSE:4968) Operating Income: 円3,456 Mil (TTM As of Jun. 2026)

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TSE:4968 Arakawa Chemical Industries Ltd TSE:4968
61 GF Score
Price 円2,465.00
GF Value 円1,311.41
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Arakawa Chemical Industries Operating Income?

Arakawa Chemical Industries TSE:4968 +7.55% 61 Operating Income is 円3,456 Mil as of Jun. 2026. GuruFocus rates TSE:4968 with a GF Score™ of 61/100 and a GF Value™ of 円1,311.41 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Arakawa Chemical Industries's Operating Income for the three months ended in Jun. 2026 was 円1,638 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was 円3,456 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arakawa Chemical Industries's Operating Income for the three months ended in Jun. 2026 was 円1,638 Mil. Arakawa Chemical Industries's Revenue for the three months ended in Jun. 2026 was 円22,282 Mil. Therefore, Arakawa Chemical Industries's Operating Margin % for the quarter that ended in Jun. 2026 was 7.35%.

Arakawa Chemical Industries'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. Arakawa Chemical Industries's annualized ROC % for the quarter that ended in Jun. 2026 was 3.39%. Arakawa Chemical Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 9.32%.


Arakawa Chemical Industries  (TSE:4968) Operating Income Explanation

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

Arakawa Chemical Industries's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=6552 * ( 1 - 44.37% )/( (106089 + 109143)/ 2 )
=3644.8776/107616
=3.39 %

where

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

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

Arakawa Chemical Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=6876/( ( (37168 + max(36065, 0)) + (36837 + max(37425, 0)) )/ 2 )
=6876/( ( 73233 + 74262 )/ 2 )
=6876/73747.5
=9.32 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(25847 + 25069 + 3386) - (9375 + 0 + 8862)
=36065

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(27239 + 25124 + 3289) - (9379 + 0 + 8848)
=37425

When net working capital is negative, 0 is used.

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

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

Arakawa Chemical Industries's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 )/Revenue (Q: Jun. 2026 )
=1638/22282
=7.35 %

* 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.


Arakawa Chemical Industries Operating Income Related Terms


Arakawa Chemical Industries Operating Income Historical Data

* Premium members only.

The historical data trend for Arakawa Chemical Industries'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.

Arakawa Chemical Industries Operating Income Chart

Arakawa Chemical Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3,304.00 -2,908.00 -2,618.00 1,057.00 2,500.00

Arakawa Chemical Industries Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 682.00 247.00 901.00 670.00 1,638.00
TSE:4968
61GF Score
Arakawa Chemical Industries Ltd TSE:4968
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Arakawa Chemical Industries 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 Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円3,456 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3,456 Mil mean?
Arakawa Chemical Industries (TSE:4968) has a Operating Income of 円3,456 Mil as of Jun. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Arakawa Chemical Industries and its competitors.
Is Arakawa Chemical Industries' Operating Income too high?
Arakawa Chemical Industries' current Operating Income is 円3,456 Mil. Overall, Arakawa Chemical Industries has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arakawa Chemical Industries' Operating Income compare to LIN and SHW?
Arakawa Chemical Industries' Operating Income of 円3,456 Mil can be compared against companies in the Chemicals 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 Chemicals company?
A good Operating Income depends on the Chemicals 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 Arakawa Chemical Industries and its competitors. Arakawa Chemical Industries's current Operating Income is 円3,456 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arakawa Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Arakawa Chemical Industries (TSE:4968) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,311.41, compared to a current price of 円2,465.00 — trading 88% above its estimated fair value. The current Operating Income is 円3,456 Mil. Arakawa Chemical Industries' overall GF Score™ is 61/100 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 Arakawa Chemical Industries (TSE:4968), the current Operating Income is 円3,456 Mil as of Jun. 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 Arakawa Chemical Industries (TSE:4968) Overvalued in 2026?

Based on GuruFocus' analysis, Arakawa Chemical Industries stock appears to be overvalued. The current stock price of 円2,465.00 is trading 88% above its estimated GF Value™ of 円1,311.41. GuruFocus considers Arakawa Chemical Industries to be Significantly Overvalued.

Key valuation signals for TSE:4968:

  • Operating Income: 円3,456 Mil
  • GF Value™: 円1,311.41 vs. price of 円2,465.00 (88% above fair value)
  • GF Score™: 61/100 with 6 warning signs

No single metric tells the full story. See the TSE:4968 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arakawa Chemical Industries Business Description

Address No. 3, No. 1, Hirano-cho, Chuo-ku, Osaka, JPN, 541-0046
Arakawa Chemical Industries Ltd is engaged in the production and sales of paper chemicals, resins for printing inks, resins for adhesives/adhesives, and intermediates for electronic materials. It manufactures various paper chemicals including water-repellents, sizing agents, paper surface improving agents, and paper strengthening, and other types of papers. It also provides printing inks for offset printing; book (magazine)-gravures and food-package-gravures. It also offers electronic materials, including rosins for use as raw material of chemicals and electronic components.
61GF Score

Get the complete analysis for TSE:4968

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

円2,465.00
Price
円1,311.41
GF Value