Top Culture Co (TSE:7640) Operating Income: 円-137 Mil (TTM As of Apr. 2026)

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TSE:7640 Top Culture Co Ltd TSE:7640
44 GF Score
Price 円177.00
GF Value 円127.73
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Top Culture Co Operating Income?

Top Culture Co TSE:7640 44 Operating Income is 円-137 Mil as of Apr. 2026. GuruFocus rates TSE:7640 with a GF Score™ of 44/100 and a GF Value™ of 円127.73 (Significantly Overvalued). The stock has 3 warning signs investors should review.

Top Culture Co's Operating Income for the six months ended in Apr. 2026 was 円143 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was 円-137 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Top Culture Co's Operating Income for the six months ended in Apr. 2026 was 円143 Mil. Top Culture Co's Revenue for the six months ended in Apr. 2026 was 円9,399 Mil. Therefore, Top Culture Co's Operating Margin % for the quarter that ended in Apr. 2026 was 1.52%.

Top Culture Co'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. Top Culture Co's annualized ROC % for the quarter that ended in Apr. 2026 was 2.05%. Top Culture Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 19.88%.


Top Culture Co  (TSE:7640) Operating Income Explanation

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

Top Culture Co's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2025 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=285.516 * ( 1 - 4.82% )/( (12592.768 + 13862.993)/ 2 )
=271.7541288/13227.8805
=2.05 %

where

Invested Capital(Q: Oct. 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))
=14792.543 - 3918.233 - ( 1204.764 - max(0, 10001.531 - 8283.073+1204.764))
=12592.768

Invested Capital(Q: Apr. 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))
=17732.264 - 6059.441 - ( 560.936 - max(0, 12158.866 - 9968.696+560.936))
=13862.993

Note: The Operating Income data used here is two times the semi-annual (Apr. 2026) data.

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

Top Culture Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2025  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1861.988/( ( (6268.741 + max(2626.432, 0)) + (7468.624 + max(2364.88, 0)) )/ 2 )
=1861.988/( ( 8895.173 + 9833.504 )/ 2 )
=1861.988/9364.3385
=19.88 %

where Working Capital is:

Working Capital(Q: Oct. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(478.881 + 6248.794 + 217.901) - (3918.233 + 0 + 400.911)
=2626.432

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(598.904 + 8063.506 + 257.576) - (6059.441 + 0 + 495.665)
=2364.88

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Apr. 2026) EBIT data.

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

Top Culture Co's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2026 )/Revenue (Q: Apr. 2026 )
=142.758/9398.979
=1.52 %

* 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.


Top Culture Co Operating Income Related Terms


Top Culture Co Operating Income Historical Data

* Premium members only.

The historical data trend for Top Culture 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.

Top Culture Co Operating Income Chart

Top Culture Co Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 356.08 -154.78 -802.26 -501.96 -391.04

Top Culture Co Semi-Annual Data
Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24 Apr25 Oct25 Apr26
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 -162.05 -339.91 -111.66 -279.38 142.76
TSE:7640
44GF Score
Top Culture Co Ltd TSE:7640
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Top Culture 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 Apr. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円-137 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-137 Mil mean?
Top Culture Co (TSE:7640) has a Operating Income of 円-137 Mil as of Apr. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Top Culture Co and its competitors.
Is Top Culture Co's Operating Income too high?
Top Culture Co's current Operating Income is 円-137 Mil. Overall, Top Culture Co has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Top Culture Co's Operating Income compare to CASY and WSM?
Top Culture Co's Operating Income of 円-137 Mil can be compared against companies in the Retail - Cyclical 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 Retail - Cyclical company?
A good Operating Income depends on the Retail - Cyclical 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 Top Culture Co and its competitors. Top Culture Co's current Operating Income is 円-137 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Top Culture Co stock overvalued right now?
Based on GuruFocus' analysis, Top Culture Co (TSE:7640) is currently considered Significantly Overvalued. The stock's GF Value™ is 円127.73, compared to a current price of 円177.00 — trading 38.6% above its estimated fair value. The current Operating Income is 円-137 Mil. Top Culture Co's overall GF Score™ is 44/100 with 3 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 Top Culture Co (TSE:7640), the current Operating Income is 円-137 Mil as of Apr. 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 Top Culture Co (TSE:7640) Overvalued in 2026?

Based on GuruFocus' analysis, Top Culture Co stock appears to be overvalued. The current stock price of 円177.00 is trading 38.6% above its estimated GF Value™ of 円127.73. GuruFocus considers Top Culture Co to be Significantly Overvalued.

Key valuation signals for TSE:7640:

  • Operating Income: 円-137 Mil
  • GF Value™: 円127.73 vs. price of 円177.00 (38.6% above fair value)
  • GF Score™: 44/100 with 3 warning signs

No single metric tells the full story. See the TSE:7640 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Top Culture Co Business Description

Address 4-9-1 Kobari, Nishi ward, Niigata, JPN, 950-2022
Top Culture Co Ltd is a speciality retail company. The firm mainly sells books, stationery, music and video software. The company owns and operates approximately 74 retail stores in Japan. In addition, the company is engaged in the management of sports facilities and maintenance of store facilities. Its reportable segments are: Tsutaya Bookstore Business, Games and trading cards business, Sports-related business, Visiting nurse business, and Catering business.
44GF Score

Get the complete analysis for TSE:7640

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

円177.00
Price
円127.73
GF Value