Kowa Co (TSE:7807) Operating Income: 円904 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:7807 Kowa Co Ltd TSE:7807
80 GF Score
Price 円882.00
GF Value 円1,119.97
Valuation Modestly Undervalued
! 1 Warning Sign
View Full Analysis

What is Kowa Co Operating Income?

Kowa Co TSE:7807 +0.80% 80 Operating Income is 円904 Mil as of Feb. 2026. GuruFocus rates TSE:7807 with a GF Score™ of 80/100 and a GF Value™ of 円1,119.97 (Modestly Undervalued). The stock has 1 warning sign investors should review.

Kowa Co's Operating Income for the three months ended in Feb. 2026 was 円184 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円904 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kowa Co's Operating Income for the three months ended in Feb. 2026 was 円184 Mil. Kowa Co's Revenue for the three months ended in Feb. 2026 was 円1,496 Mil. Therefore, Kowa Co's Operating Margin % for the quarter that ended in Feb. 2026 was 12.33%.

Good Sign:

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

Kowa Co's 5-Year average Growth Rate for Operating Margin % was 10.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kowa Co's annualized ROC % for the quarter that ended in Feb. 2026 was 26.43%. Kowa Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 34.85%.


Kowa Co  (TSE:7807) Operating Income Explanation

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

Kowa Co'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 )
=737.944 * ( 1 - 29.72% )/( (1994.591 + 1929.717)/ 2 )
=518.6270432/1962.154
=26.43 %

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))
=4941.164 - 1235.069 - ( 1711.504 - max(0, 1372.543 - 3953.474+1711.504))
=1994.591

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))
=5077.926 - 1145.914 - ( 2002.295 - max(0, 1307.552 - 4074.63+2002.295))
=1929.717

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

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

Kowa Co'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 )
=615.476/( ( (895.301 + max(915.486, 0)) + (908.506 + max(813.149, 0)) )/ 2 )
=615.476/( ( 1810.787 + 1721.655 )/ 2 )
=615.476/1766.221
=34.85 %

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)
=(983.897 + 1150.811 + 107.262) - (1235.069 + 0 + 91.415)
=915.486

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(868.743 + 1144.832 + 58.76) - (1145.914 + 0 + 113.272)
=813.149

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 %:

Kowa Co'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 )
=184.486/1495.91
=12.33 %

* 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.


Kowa Co Operating Income Related Terms


Kowa Co Operating Income Historical Data

* Premium members only.

The historical data trend for Kowa 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.

Kowa Co Operating Income Chart

Kowa Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 590.44 649.10 948.37 797.37 747.68

Kowa Co 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 160.31 217.14 185.74 184.49 316.46
TSE:7807
80GF Score
Kowa Co Ltd TSE:7807
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kowa 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 Feb. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円904 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904 Mil mean?
Kowa Co (TSE:7807) has a Operating Income of 円904 Mil as of Feb. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Kowa Co and its competitors.
Is Kowa Co's Operating Income too high?
Kowa Co's current Operating Income is 円904 Mil. Overall, Kowa Co has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kowa Co's Operating Income compare to SN and SGI?
Kowa Co's Operating Income of 円904 Mil can be compared against companies in the Furnishings, Fixtures & Appliances 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 Furnishings, Fixtures & Appliances company?
A good Operating Income depends on the Furnishings, Fixtures & Appliances 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 Kowa Co and its competitors. Kowa Co's current Operating Income is 円904 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kowa Co stock overvalued right now?
Based on GuruFocus' analysis, Kowa Co (TSE:7807) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,119.97, compared to a current price of 円882.00 — trading 21.2% below its estimated fair value. The current Operating Income is 円904 Mil. Kowa Co's overall GF Score™ is 80/100 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 Kowa Co (TSE:7807), the current Operating Income is 円904 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 Kowa Co (TSE:7807) Overvalued in 2026?

Based on GuruFocus' analysis, Kowa Co stock appears to be undervalued. The current stock price of 円882.00 is trading 21.2% below its estimated GF Value™ of 円1,119.97. GuruFocus considers Kowa Co to be Modestly Undervalued.

Key valuation signals for TSE:7807:

  • Operating Income: 円904 Mil
  • GF Value™: 円1,119.97 vs. price of 円882.00 (21.2% below fair value)
  • GF Score™: 80/100 with 1 warning sign

No single metric tells the full story. See the TSE:7807 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kowa Co Business Description

Address 3-159-1, Kaisan-cho, Sakai-ku, Sakai-shi, Osaka, JPN, 590-0982
Kowa Co Ltd is a Japan-based company engaged in manufacture and sale of welfare equipment. The company is involved in the production and sales of welfare nursing care products including walking cars and walking aids or walk assistance carts, silver cars, handrails, walking canes, bath related products, toilet-related products and life-support products. It supplies its products mainly to chain stores, wholesale trading companies for welfare equipment, national welfare equipment lease companies, department stores, mail-order companies and others.
80GF Score

Get the complete analysis for TSE:7807

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

円882.00
Price
円1,119.97
GF Value