Two stone & Sons (TSE:7352) Operating Income: 円533 Mil (TTM As of Feb. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:7352 Two stone & Sons Inc TSE:7352
68 GF Score
Price 円317.00
GF Value 円1,521.76
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is Two stone & Sons Operating Income?

Two stone & Sons TSE:7352 -1.86% 68 Operating Income is 円533 Mil as of Feb. 2026. GuruFocus rates TSE:7352 with a GF Score™ of 68/100 and a GF Value™ of 円1,521.76 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Two stone & Sons's Operating Income for the three months ended in Feb. 2026 was 円-105 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円533 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Two stone & Sons's Operating Income for the three months ended in Feb. 2026 was 円-105 Mil. Two stone & Sons's Revenue for the three months ended in Feb. 2026 was 円4,921 Mil. Therefore, Two stone & Sons's Operating Margin % for the quarter that ended in Feb. 2026 was -2.14%.

Good Sign:

Two stone & Sons Inc operating margin is expanding. Margin expansion is usually a good sign.

Two stone & Sons's 5-Year average Growth Rate for Operating Margin % was 6.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Two stone & Sons's annualized ROC % for the quarter that ended in Feb. 2026 was -8.25%. Two stone & Sons's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was -12.38%.


Two stone & Sons  (TSE:7352) Operating Income Explanation

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

Two stone & Sons'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 )
=-420.648 * ( 1 - 0% )/( (4842.167 + 5357.703)/ 2 )
=-420.648/5099.935
=-8.25 %

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))
=10529.706 - 2253.658 - ( 4080.08 - max(0, 4179.416 - 7613.297+4080.08))
=4842.167

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))
=10740.776 - 2330.973 - ( 4606.765 - max(0, 4369.976 - 7422.076+4606.765))
=5357.703

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

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

Two stone & Sons'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 )
=-73.372/( ( (288.941 + max(461.62, 0)) + (435.196 + max(-191.095, 0)) )/ 2 )
=-73.372/( ( 750.561 + 435.196 )/ 2 )
=-73.372/592.8785
=-12.38 %

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)
=(3262.711 + 0 + 270.506) - (2253.658 + 0 + 817.939)
=461.62

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2562.867 + 0 + 252.444) - (2330.973 + 0 + 675.433)
=-191.095

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 %:

Two stone & Sons'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 )
=-105.162/4921.32
=-2.14 %

* 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.


Two stone & Sons Operating Income Related Terms


Two stone & Sons Operating Income Historical Data

* Premium members only.

The historical data trend for Two stone & Sons'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.

Two stone & Sons Operating Income Chart

Two stone & Sons Annual Data
Trend Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Operating Income
Get a 7-Day Free Trial 127.88 195.51 319.62 474.87 820.00

Two stone & Sons Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Feb25 May25 Aug25 Nov25 Feb26 May26
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 81.15 -69.31 629.75 -105.16 77.82
TSE:7352
68GF Score
Two stone & Sons Inc TSE:7352
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Two stone & Sons 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533 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533 Mil mean?
Two stone & Sons (TSE:7352) has a Operating Income of 円533 Mil as of Feb. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Two stone & Sons and its competitors.
Is Two stone & Sons' Operating Income too high?
Two stone & Sons' current Operating Income is 円533 Mil. Overall, Two stone & Sons has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Two stone & Sons' Operating Income compare to CTAS and CPRT?
Two stone & Sons' Operating Income of 円533 Mil can be compared against companies in the Business Services 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 Business Services company?
A good Operating Income depends on the Business Services 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 Two stone & Sons and its competitors. Two stone & Sons's current Operating Income is 円533 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Two stone & Sons stock overvalued right now?
Based on GuruFocus' analysis, Two stone & Sons (TSE:7352) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,521.76, compared to a current price of 円317.00 — trading 79.2% below its estimated fair value. The current Operating Income is 円533 Mil. Two stone & Sons' overall GF Score™ is 68/100 with 2 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 Two stone & Sons (TSE:7352), the current Operating Income is 円533 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 Two stone & Sons (TSE:7352) Overvalued in 2026?

Based on GuruFocus' analysis, Two stone & Sons stock appears to be undervalued. The current stock price of 円317.00 is trading 79.2% below its estimated GF Value™ of 円1,521.76. GuruFocus considers Two stone & Sons to be Significantly Undervalued.

Key valuation signals for TSE:7352:

  • Operating Income: 円533 Mil
  • GF Value™: 円1,521.76 vs. price of 円317.00 (79.2% below fair value)
  • GF Score™: 68/100 with 2 warning signs

No single metric tells the full story. See the TSE:7352 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Two stone & Sons Business Description

Address 2-22-3 Shibuya, Shibuya East Exit Building 6F, Shibuya-ku, Tokyo, JPN, 150-0002
Two stone & Sons Inc is an engineering company providing engineering resources to companies, media businesses, and programming school businesses. The company develops services such as in-house media management and client solutions such as contract development.
68GF Score

Get the complete analysis for TSE:7352

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

円317.00
Price
円1,521.76
GF Value