Kintetsu Group Holdings CoFRA:KKI 75 Operating Margin % is 3.92% as of Mar. 2026, which is 21% below its 10-year median of 4.98. GuruFocus rates FRA:KKI with a GF Score™ of 75/100 and a GF Value™ of €19.35. The stock has 4 warning signs investors should review. Among 545 Conglomerates companies, Kintetsu Group Holdings Co ranks worse than 55.05% on this metric.
Kintetsu Group Holdings Co (FRA:KKI) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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.
Kintetsu Group Holdings Co Operating Margin % Related Terms
Kintetsu Group Holdings Co Operating Margin % Historical Data
* 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.
Kintetsu Group Holdings Co Operating Margin % Chart
FRA:KKI vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Kintetsu Group Holdings Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kintetsu Group Holdings Co Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Kintetsu Group Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kintetsu Group Holdings Co's Operating Margin % falls into.
Kintetsu Group Holdings Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Kintetsu Group Holdings Co's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Kintetsu Group Holdings Co (FRA:KKI) has a Operating Margin % of 3.92% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kintetsu Group Holdings Co and its competitors. This is 21% below median its historical median of 4.98. According to the industry distribution chart, Kintetsu Group Holdings Co ranks #300 out of 545 companies in the Conglomerates industry, placing it in the top 55%.
Is Kintetsu Group Holdings Co's Operating Margin % too high?
Kintetsu Group Holdings Co's current Operating Margin % of 3.92% is 21% below median its 10-year median of 4.98. The Conglomerates industry median Operating Margin % is 5.93. Kintetsu Group Holdings Co's value of 3.92% is 33.9% below this industry median. Based on the distribution chart, Kintetsu Group Holdings Co ranks #300 out of 545 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Kintetsu Group Holdings Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Kintetsu Group Holdings Co's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Kintetsu Group Holdings Co ranks #300 out of 545 companies for Operating Margin %. This places Kintetsu Group Holdings Co in the lower half of its industry. The industry median Operating Margin % is 5.93. Kintetsu Group Holdings Co's value of 3.92% is 33.9% below this benchmark. While the company's 10-year median is 4.98 vs. the industry median of 5.93, Kintetsu Group Holdings Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kintetsu Group Holdings Co's current Operating Margin % of 3.92% is 33.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Kintetsu Group Holdings Co and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kintetsu Group Holdings Co's current Operating Margin % is 3.92%, which is 21% below median its own 10-year median of 4.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kintetsu Group Holdings Co stock overvalued right now?
Kintetsu Group Holdings Co (FRA:KKI) has a current Operating Margin % of 3.92%. The stock's GF Value™ is €19.35, compared to a current price of €18.00 — trading 7% below its estimated fair value. The current Operating Margin % is 3.92%, which is 21% below median its 10-year median of 4.98 and 33.9% below the Conglomerates industry median of 5.93. Kintetsu Group Holdings Co's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Kintetsu Group Holdings Co (FRA:KKI), the current Operating Margin % is 3.92% 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 Kintetsu Group Holdings Co (FRA:KKI) Overvalued in 2026?
Based on GuruFocus' analysis, Kintetsu Group Holdings Co stock appears to be undervalued.
The current stock price of €18.00 is trading 7% below its estimated GF Value™ of €19.35.
Key valuation signals for FRA:KKI:
Operating Margin %: 3.92% (21% below median its 10-year median of 4.98)
GF Value™: €19.35 vs. price of €18.00 (7% below fair value)
Industry Position: 33.9% below the Conglomerates median (#300 of 545)
No single metric tells the full story. See the FRA:KKI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kintetsu Group Holdings Co Ltd operates a diverse range of businesses with a primary focus on railway operations. The group has six reportable segments: Transportation, Real Estate, International Logistics, Distribution, Hotels & Leisure, and Other. Its Transportation segment includes railway, bus, and taxi operations; Real Estate covers real estate sales, rental, and management; International Logistics involves air and sea freight transport; Distribution handles sales in department stores and station kiosks; Hotels & Leisure includes travel, hotel, and inn operations; while the Other segment engages in the manufacture and sale of metal machinery and equipment, as well as cable television and information processing operations. It generates majority of revenue from International logistics.
75GF Score
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