Japan Communications (TSE:9424) Operating Income: 円1,134 Mil (TTM As of Mar. 2026)

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TSE:9424 Japan Communications Inc TSE:9424
59 GF Score
Price 円120.00
GF Value 円240.08
Valuation Possible Value Trap
! 2 Warning Signs
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What is Japan Communications Operating Income?

Japan Communications TSE:9424 +0.84% 59 Operating Income is 円1,134 Mil as of Mar. 2026. GuruFocus rates TSE:9424 with a GF Score™ of 59/100 and a GF Value™ of 円240.08 (Possible Value Trap). The stock has 2 warning signs investors should review.

Japan Communications's Operating Income for the three months ended in Mar. 2026 was 円240 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,134 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Japan Communications's Operating Income for the three months ended in Mar. 2026 was 円240 Mil. Japan Communications's Revenue for the three months ended in Mar. 2026 was 円3,015 Mil. Therefore, Japan Communications's Operating Margin % for the quarter that ended in Mar. 2026 was 7.96%.

Japan Communications'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. Japan Communications's annualized ROC % for the quarter that ended in Mar. 2026 was 0.00%. Japan Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 18.38%.


Japan Communications  (TSE:9424) Operating Income Explanation

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

Japan Communications'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 )
=959.504 * ( 1 - 100% )/( (4364.104 + 4969.118)/ 2 )
=0/4666.611
=0.00 %

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))
=8669.186 - 1544.488 - ( 3747.115 - max(0, 2400.976 - 5161.57+3747.115))
=4364.104

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))
=11995.243 - 1015.552 - ( 7107.324 - max(0, 2443.32 - 8453.893+7107.324))
=4969.118

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

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

Japan Communications'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 )
=115.476/( ( (636.535 + max(-805.076, 0)) + (619.917 + max(-343.137, 0)) )/ 2 )
=115.476/( ( 636.535 + 619.917 )/ 2 )
=115.476/628.226
=18.38 %

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)
=(874.367 + 60.555 + 374.978) - (1544.488 + 0 + 570.488)
=-805.076

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(879.731 + 70.985 + 297.467) - (1015.552 + 0 + 575.768)
=-343.137

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 %:

Japan Communications'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 )
=239.876/3014.59
=7.96 %

* 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.


Japan Communications Operating Income Related Terms


Japan Communications Operating Income Historical Data

* Premium members only.

The historical data trend for Japan Communications'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.

Japan Communications Operating Income Chart

Japan Communications 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 279.53 740.90 1,139.07 962.49 1,134.04

Japan Communications Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26
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 0.00 323.30 259.50 311.36 239.88
TSE:9424
59GF Score
Japan Communications Inc TSE:9424
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Japan Communications 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1,134 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1,134 Mil mean?
Japan Communications (TSE:9424) has a Operating Income of 円1,134 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Japan Communications and its competitors.
Is Japan Communications' Operating Income too high?
Japan Communications' current Operating Income is 円1,134 Mil. Overall, Japan Communications has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Communications' Operating Income compare to VZ and TMUS?
Japan Communications' Operating Income of 円1,134 Mil can be compared against companies in the Telecommunication 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 Telecommunication Services company?
A good Operating Income depends on the Telecommunication 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 Japan Communications and its competitors. Japan Communications's current Operating Income is 円1,134 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Communications stock overvalued right now?
Based on GuruFocus' analysis, Japan Communications (TSE:9424) is currently considered Possible Value Trap. The stock's GF Value™ is 円240.08, compared to a current price of 円120.00 — trading 50% below its estimated fair value. The current Operating Income is 円1,134 Mil. Japan Communications' overall GF Score™ is 59/100 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 Japan Communications (TSE:9424), the current Operating Income is 円1,134 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 Japan Communications (TSE:9424) Overvalued in 2026?

Based on GuruFocus' analysis, Japan Communications stock appears to be undervalued. The current stock price of 円120.00 is trading 50% below its estimated GF Value™ of 円240.08. GuruFocus considers Japan Communications to be Possible Value Trap.

Key valuation signals for TSE:9424:

  • Operating Income: 円1,134 Mil
  • GF Value™: 円240.08 vs. price of 円120.00 (50% below fair value)
  • GF Score™: 59/100 with 2 warning signs

No single metric tells the full story. See the TSE:9424 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Japan Communications Business Description

Address 4-1-28 Toranomon Towers Office, 23rd Floor, Minato-ku, Tokyo, JPN, 105-0001
Japan Communications Inc is a mobile virtual network operator. It creates the next generation internet to assist industrial structure through mobile technology. The company provides mobile platforms to handset manufacturers, IP-PBX makers, system integrators, and others.
59GF Score

Get the complete analysis for TSE:9424

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

円120.00
Price
円240.08
GF Value