Nippon Hume (TSE:5262) Operating Income: 円2,524 Mil (TTM As of Mar. 2026)

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TSE:5262 Nippon Hume Corp TSE:5262
79 GF Score
Price 円1,044.00
GF Value 円779.85
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Nippon Hume Operating Income?

Nippon Hume TSE:5262 -0.19% 79 Operating Income is 円2,524 Mil as of Mar. 2026. GuruFocus rates TSE:5262 with a GF Score™ of 79/100 and a GF Value™ of 円779.85 (Significantly Overvalued). The stock has 1 warning sign investors should review.

Nippon Hume's Operating Income for the three months ended in Mar. 2026 was 円655 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円2,524 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nippon Hume's Operating Income for the three months ended in Mar. 2026 was 円655 Mil. Nippon Hume's Revenue for the three months ended in Mar. 2026 was 円12,650 Mil. Therefore, Nippon Hume's Operating Margin % for the quarter that ended in Mar. 2026 was 5.18%.

Good Sign:

Nippon Hume Corp operating margin is expanding. Margin expansion is usually a good sign.

Nippon Hume's 5-Year average Growth Rate for Operating Margin % was 2.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nippon Hume's annualized ROC % for the quarter that ended in Mar. 2026 was 4.12%. Nippon Hume's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 14.24%.


Nippon Hume  (TSE:5262) Operating Income Explanation

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

Nippon Hume's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=2621.292 * ( 1 - 21.2% )/( (46960.201 + 53416.558)/ 2 )
=2065.578096/50188.3795
=4.12 %

where

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))
=58307.185 - 4717.181 - ( 6629.803 - max(0, 7049.245 - 24519.241+6629.803))
=46960.201

Invested Capital(Q: Mar. 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))
=68996.244 - 5281.72 - ( 10297.966 - max(0, 10150.172 - 31424.671+10297.966))
=53416.558

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

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

Nippon Hume's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3349.428/( ( (10673.004 + max(11670.193, 0)) + (12838.078 + max(11865.261, 0)) )/ 2 )
=3349.428/( ( 22343.197 + 24703.339 )/ 2 )
=3349.428/23523.268
=14.24 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10468.746 + 5075.42 + 2345.272) - (4717.181 + 0 + 1502.064)
=11670.193

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12363.499 + 5127.049 + 3636.157) - (5281.72 + 0 + 3979.724)
=11865.261

When net working capital is negative, 0 is used.

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

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

Nippon Hume's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=655.323/12650.489
=5.18 %

* 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.


Nippon Hume Operating Income Related Terms


Nippon Hume Operating Income Historical Data

* Premium members only.

The historical data trend for Nippon Hume'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.

Nippon Hume Operating Income Chart

Nippon Hume 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 1,449.95 1,236.21 1,381.71 2,022.01 2,523.73

Nippon Hume Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26
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 0.00 629.68 515.71 723.02 655.32
TSE:5262
79GF Score
Nippon Hume Corp TSE:5262
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Hume 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 Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円2,524 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2,524 Mil mean?
Nippon Hume (TSE:5262) has a Operating Income of 円2,524 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Nippon Hume and its competitors.
Is Nippon Hume's Operating Income too high?
Nippon Hume's current Operating Income is 円2,524 Mil. Overall, Nippon Hume has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hume's Operating Income compare to TT and JCI?
Nippon Hume's Operating Income of 円2,524 Mil can be compared against companies in the Construction 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 Construction company?
A good Operating Income depends on the Construction 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 Nippon Hume and its competitors. Nippon Hume's current Operating Income is 円2,524 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hume stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hume (TSE:5262) is currently considered Significantly Overvalued. The stock's GF Value™ is 円779.85, compared to a current price of 円1,044.00 — trading 33.9% above its estimated fair value. The current Operating Income is 円2,524 Mil. Nippon Hume's overall GF Score™ is 79/100 with 1 warning sign 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 Nippon Hume (TSE:5262), the current Operating Income is 円2,524 Mil as of Mar. 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 Nippon Hume (TSE:5262) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Hume stock appears to be overvalued. The current stock price of 円1,044.00 is trading 33.9% above its estimated GF Value™ of 円779.85. GuruFocus considers Nippon Hume to be Significantly Overvalued.

Key valuation signals for TSE:5262:

  • Operating Income: 円2,524 Mil
  • GF Value™: 円779.85 vs. price of 円1,044.00 (33.9% above fair value)
  • GF Score™: 79/100 with 1 warning sign

No single metric tells the full story. See the TSE:5262 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Hume Business Description

Address No. 11, No. 33 5-chome, Minato-ku, Tokyo, JPN, 105-0004
Nippon Hume Corp provides one-stop service in the design, manufacture and installation of precast concrete products. The company's three reportable segments include Foundations, Sewerage-related, and Solar Power Generation and Real Estate. In Foundations, concrete piles are manufactured and sold, and pile driving work is carried out. In the Sewerage related segment, Hume pipes, segments and other products are manufactured and sold, and pipe and drain rehabilitation projects are carried out. In Solar Power Generation and Real Estate, real estate is rented, managed and developed, and equipment related to solar power and the environment is sold and maintenance is provided for it.
79GF Score

Get the complete analysis for TSE:5262

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

円1,044.00
Price
円779.85
GF Value