Nippon Gear Co (TSE:6356) Operating Income: 円2,574 Mil (TTM As of Mar. 2026)

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TSE:6356 Nippon Gear Co Ltd TSE:6356
71 GF Score
Price 円1,303.00
GF Value 円590.21
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Nippon Gear Co Operating Income?

Nippon Gear Co TSE:6356 +0.31% 71 Operating Income is 円2,574 Mil as of Mar. 2026. GuruFocus rates TSE:6356 with a GF Score™ of 71/100 and a GF Value™ of 円590.21 (Significantly Overvalued). The stock has 1 warning sign investors should review.

Nippon Gear Co's Operating Income for the three months ended in Mar. 2026 was 円1,017 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円2,574 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nippon Gear Co's Operating Income for the three months ended in Mar. 2026 was 円1,017 Mil. Nippon Gear Co's Revenue for the three months ended in Mar. 2026 was 円3,179 Mil. Therefore, Nippon Gear Co's Operating Margin % for the quarter that ended in Mar. 2026 was 31.99%.

Good Sign:

Nippon Gear Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

Nippon Gear Co's 5-Year average Growth Rate for Operating Margin % was 58.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nippon Gear Co's annualized ROC % for the quarter that ended in Mar. 2026 was 27.21%. Nippon Gear Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 70.44%.


Nippon Gear Co  (TSE:6356) Operating Income Explanation

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

Nippon Gear Co'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 )
=4067.58 * ( 1 - 32.06% )/( (10641.944 + 9670.093)/ 2 )
=2763.513852/10156.0185
=27.21 %

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))
=16150.118 - 473.133 - ( 5035.041 - max(0, 1773.167 - 10886.04+5035.041))
=10641.944

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))
=17201.128 - 1405.289 - ( 6125.746 - max(0, 2016.585 - 11990.951+6125.746))
=9670.093

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 Gear Co'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 )
=4359.64/( ( (2297.206 + max(4115.452, 0)) + (2166.659 + max(3799.787, 0)) )/ 2 )
=4359.64/( ( 6412.658 + 5966.446 )/ 2 )
=4359.64/6189.552
=70.44 %

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)
=(2146.13 + 2208.275 + 1496.594) - (473.133 + 0 + 1262.414)
=4115.452

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2368.982 + 1933.464 + 1476.306) - (1405.289 + 0 + 573.676)
=3799.787

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 Gear Co'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 )
=1016.895/3178.717
=31.99 %

* 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 Gear Co Operating Income Related Terms


Nippon Gear Co Operating Income Historical Data

* Premium members only.

The historical data trend for Nippon Gear 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.

Nippon Gear Co Operating Income Chart

Nippon Gear Co 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 118.87 964.64 2,128.11 2,105.78 2,457.08

Nippon Gear Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 378.92 412.94 648.33 1,016.90 495.88
TSE:6356
71GF Score
Nippon Gear Co Ltd TSE:6356
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Gear 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 Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円2,574 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2,574 Mil mean?
Nippon Gear Co (TSE:6356) has a Operating Income of 円2,574 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Nippon Gear Co and its competitors.
Is Nippon Gear Co's Operating Income too high?
Nippon Gear Co's current Operating Income is 円2,574 Mil. Overall, Nippon Gear Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gear Co's Operating Income compare to ORLY and AZO?
Nippon Gear Co's Operating Income of 円2,574 Mil can be compared against companies in the Vehicles & Parts 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 Vehicles & Parts company?
A good Operating Income depends on the Vehicles & Parts 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 Gear Co and its competitors. Nippon Gear Co's current Operating Income is 円2,574 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gear Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gear Co (TSE:6356) is currently considered Significantly Overvalued. The stock's GF Value™ is 円590.21, compared to a current price of 円1,303.00 — trading 120.8% above its estimated fair value. The current Operating Income is 円2,574 Mil. Nippon Gear Co's overall GF Score™ is 71/100 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 Gear Co (TSE:6356), the current Operating Income is 円2,574 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 Gear Co (TSE:6356) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Gear Co stock appears to be overvalued. The current stock price of 円1,303.00 is trading 120.8% above its estimated GF Value™ of 円590.21. GuruFocus considers Nippon Gear Co to be Significantly Overvalued.

Key valuation signals for TSE:6356:

  • Operating Income: 円2,574 Mil
  • GF Value™: 円590.21 vs. price of 円1,303.00 (120.8% above fair value)
  • GF Score™: 71/100 with 1 warning sign

No single metric tells the full story. See the TSE:6356 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Gear Co Business Description

Address 1-7-14 Nishi-Shinbashi, 2nd Floor, Keihanshin Toranomon Building, Tokyo, JPN, 252-0811
Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.
71GF Score

Get the complete analysis for TSE:6356

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

円1,303.00
Price
円590.21
GF Value