Di Nikko Engineering Co (TSE:6635) Operating Income: 円638 Mil (TTM As of Dec. 2025)

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TSE:6635 Di Nikko Engineering Co Ltd TSE:6635
62 GF Score
Price 円691.00
GF Value 円490.60
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Di Nikko Engineering Co Operating Income?

Di Nikko Engineering Co TSE:6635 -0.86% 62 Operating Income is 円638 Mil as of Dec. 2025. GuruFocus rates TSE:6635 with a GF Score™ of 62/100 and a GF Value™ of 円490.60 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Di Nikko Engineering Co's Operating Income for the six months ended in Dec. 2025 was 円286 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円638 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Di Nikko Engineering Co's Operating Income for the six months ended in Dec. 2025 was 円286 Mil. Di Nikko Engineering Co's Revenue for the six months ended in Dec. 2025 was 円19,258 Mil. Therefore, Di Nikko Engineering Co's Operating Margin % for the quarter that ended in Dec. 2025 was 1.49%.

Good Sign:

Di Nikko Engineering Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

Di Nikko Engineering Co's 5-Year average Growth Rate for Operating Margin % was 21.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Di Nikko Engineering Co's annualized ROC % for the quarter that ended in Dec. 2025 was 0.61%. Di Nikko Engineering Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 4.41%.


Di Nikko Engineering Co  (TSE:6635) Operating Income Explanation

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

Di Nikko Engineering Co's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=572.622 * ( 1 - 80.27% )/( (19205.391 + 18055.018)/ 2 )
=112.9783206/18630.2045
=0.61 %

where

Invested Capital(Q: Jun. 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))
=27632.695 - 4302.008 - ( 4125.296 - max(0, 15455.733 - 21928.844+4125.296))
=19205.391

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))
=28854.697 - 5419.991 - ( 5379.688 - max(0, 17134.37 - 23199.904+5379.688))
=18055.018

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

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

Di Nikko Engineering Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=612.504/( ( (4027.243 + max(10298.611, 0)) + (4141.119 + max(9305.034, 0)) )/ 2 )
=612.504/( ( 14325.854 + 13446.153 )/ 2 )
=612.504/13886.0035
=4.41 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6734.814 + 7270.68 + 3798.054) - (4302.008 + 0 + 3202.929)
=10298.611

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7892.42 + 6681.2 + 3246.596) - (5419.991 + 0 + 3095.191)
=9305.034

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

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

Di Nikko Engineering Co's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=286.311/19257.899
=1.49 %

* 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.


Di Nikko Engineering Co Operating Income Related Terms


Di Nikko Engineering Co Operating Income Historical Data

* Premium members only.

The historical data trend for Di Nikko Engineering 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.

Di Nikko Engineering Co Operating Income Chart

Di Nikko Engineering Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 196.44 648.57 583.88 643.43 638.13

Di Nikko Engineering Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 409.64 368.94 274.49 351.82 286.31
TSE:6635
62GF Score
Di Nikko Engineering Co Ltd TSE:6635
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Di Nikko Engineering 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 Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円638 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638 Mil mean?
Di Nikko Engineering Co (TSE:6635) has a Operating Income of 円638 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Di Nikko Engineering Co and its competitors.
Is Di Nikko Engineering Co's Operating Income too high?
Di Nikko Engineering Co's current Operating Income is 円638 Mil. Overall, Di Nikko Engineering Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Di Nikko Engineering Co's Operating Income compare to APH and GLW?
Di Nikko Engineering Co's Operating Income of 円638 Mil can be compared against companies in the Hardware 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 Hardware company?
A good Operating Income depends on the Hardware 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 Di Nikko Engineering Co and its competitors. Di Nikko Engineering Co's current Operating Income is 円638 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Di Nikko Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Di Nikko Engineering Co (TSE:6635) is currently considered Significantly Overvalued. The stock's GF Value™ is 円490.60, compared to a current price of 円691.00 — trading 40.8% above its estimated fair value. The current Operating Income is 円638 Mil. Di Nikko Engineering Co's overall GF Score™ is 62/100 with 5 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 Di Nikko Engineering Co (TSE:6635), the current Operating Income is 円638 Mil as of Dec. 2025. 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 Di Nikko Engineering Co (TSE:6635) Overvalued in 2026?

Based on GuruFocus' analysis, Di Nikko Engineering Co stock appears to be overvalued. The current stock price of 円691.00 is trading 40.8% above its estimated GF Value™ of 円490.60. GuruFocus considers Di Nikko Engineering Co to be Significantly Overvalued.

Key valuation signals for TSE:6635:

  • Operating Income: 円638 Mil
  • GF Value™: 円490.60 vs. price of 円691.00 (40.8% above fair value)
  • GF Score™: 62/100 with 5 warning signs

No single metric tells the full story. See the TSE:6635 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Di Nikko Engineering Co Business Description

Address 697-1, Nemuro, Tochigi, Nikko, JPN, 321-2342
Di Nikko Engineering Co Ltd engages in the design, test, manufacture, distribution, and return/repair of electronic components and assemblies for original equipment manufacturers in Japan. Its services include the design to production of the circuit implementation of an electronic board used for an electronics product, an OA apparatus, optical goods, and communications equipment. Geographically company manages in two segments Japan and Asia.
62GF Score

Get the complete analysis for TSE:6635

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

円691.00
Price
円490.60
GF Value