Japan EngineKDCLF 60 Operating Margin % is 14.99% as of Mar. 2026, which is 356% above its 10-year median of 3.29. GuruFocus rates KDCLF with a GF Score™ of 60/100 and a GF Value™ of $34.01 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 3,038 Industrial Products companies, Japan Engine ranks better than 89.53% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Japan Engine's Operating Income for the
three
months ended in Mar. 2026 was $5.9 Mil. Japan Engine's Revenue for the
three
months ended in Mar. 2026 was $39.5 Mil. Therefore, Japan Engine's Operating Margin % for the quarter that ended in Mar. 2026 was 14.99%.
Good Sign:
Japan Engine Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Japan Engine's Operating Margin % or its related term are showing as below:
KDCLF'
s Operating Margin % Range Over the Past 10 Years
Min: -5.33 Med: 3.29 Max: 18.37
Current: 18.37
KDCLF's Operating Margin % is ranked better than 89.53% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs KDCLF: 18.37
Japan Engine's 5-Year Average Operating Margin % Growth Rate was 47.40% per year.
Japan Engine's Operating Income for the
three
months ended in Mar. 2026 was $5.9 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $36.3 Mil.
Japan Engine (OTCPK:KDCLF) 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.
Japan Engine Operating Margin % Related Terms
Japan Engine Operating Margin % Historical Data
* Premium members only.
The historical data trend for Japan Engine's Operating Margin % 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.
KDCLF vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Japan Engine'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.
Japan Engine Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Japan Engine's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Engine's Operating Margin % falls into.
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.
Japan Engine'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.
Japan Engine (KDCLF) has a Operating Margin % of 14.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Engine and its competitors. This is 356% above median its historical median of 3.29. According to the industry distribution chart, Japan Engine ranks #318 out of 3038 companies in the Industrial Products industry, placing it in the top 10.5%.
Is Japan Engine's Operating Margin % too high?
Japan Engine's current Operating Margin % of 14.99% is 356% above median its 10-year median of 3.29. The Industrial Products industry median Operating Margin % is 6.53. Japan Engine's value of 14.99% is 129.6% above this industry median. Based on the distribution chart, Japan Engine ranks #318 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Engine has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Engine's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Japan Engine ranks #318 out of 3038 companies for Operating Margin %. This places Japan Engine in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Japan Engine's value of 14.99% is 129.6% above this benchmark. While the company's 10-year median is 3.29 vs. the industry median of 6.53, Japan Engine has consistently been above 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Japan Engine's current Operating Margin % of 14.99% is 129.6% above 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 Japan Engine and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Engine's current Operating Margin % is 14.99%, which is 356% above median its own 10-year median of 3.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Engine stock overvalued right now?
Based on GuruFocus' analysis, Japan Engine (KDCLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $34.01, compared to a current price of $50.45 — trading 48.3% above its estimated fair value. The current Operating Margin % is 14.99%, which is 356% above median its 10-year median of 3.29 and 129.6% above the Industrial Products industry median of 6.53. Japan Engine's overall GF Score™ is 60/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Japan Engine (KDCLF), the current Operating Margin % is 14.99% 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 Engine (KDCLF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Engine stock appears to be overvalued.
The current stock price of $50.45 is trading 48.3% above its estimated GF Value™ of $34.01.
GuruFocus considers Japan Engine to be Significantly Overvalued.
Key valuation signals for KDCLF:
Operating Margin %: 14.99% (356% above median its 10-year median of 3.29)
GF Value™: $34.01 vs. price of $50.45 (48.3% above fair value)
Industry Position: 129.6% above the Industrial Products median (#318 of 3038)
No single metric tells the full story. See the KDCLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Engine Corp is a Japanese company engaged in the production and sale of various types of UE diesel engines. It also manufactures machinery and equipment related to marine, factory automation and energy saving. The organization has a business presence in Japan and other countries.
60GF Score
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