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MBSTSE:1401 +1.56%83 Operating Margin % is 15.83% as of Feb. 2026, which is 50% above its 10-year median of 10.57. GuruFocus rates TSE:1401 with a GF Score™ of 83/100 and a GF Value™ of 円930.18 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,773 Construction companies, MBS ranks better than 82.91% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. MBS's Operating Income for the
three
months ended in Feb. 2026 was 円168 Mil. MBS's Revenue for the
three
months ended in Feb. 2026 was 円1,058 Mil. Therefore, MBS's Operating Margin % for the quarter that ended in Feb. 2026 was 15.83%.
Good Sign:
MBS Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for MBS's Operating Margin % or its related term are showing as below:
TSE:1401'
s Operating Margin % Range Over the Past 10 Years
Min: 7.07 Med: 10.57 Max: 14.35
Current: 14.35
TSE:1401's Operating Margin % is ranked better than 82.91% of 1773
companies
in the Construction industry
Industry Median: 5.92
vs TSE:1401: 14.35
MBS's 5-Year Average Operating Margin % Growth Rate was 12.70% per year.
MBS's Operating Income for the
three
months ended in Feb. 2026 was 円168 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円722 Mil.
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.
MBS Operating Margin % Related Terms
MBS Operating Margin % Historical Data
* Premium members only.
The historical data trend for MBS'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.
TSE:1401 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, MBS'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.
MBS Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, MBS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MBS'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.
MBS's Operating Margin % for the fiscal year that ended in May. 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.
MBS (TSE:1401) has a Operating Margin % of 15.83% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on MBS and its competitors. This is 50% above median its historical median of 10.57. Over the past decade, MBS's Operating Margin % has ranged from 7.07 to 14.35. According to the industry distribution chart, MBS ranks #303 out of 1773 companies in the Construction industry, placing it in the top 17.1%.
Is MBS's Operating Margin % too high?
MBS's current Operating Margin % of 15.83% is 50% above median its 10-year median of 10.57. Over the past 10 years, this metric has ranged from a low of 7.07 to a high of 14.35. The Construction industry median Operating Margin % is 5.92. MBS's value of 15.83% is 167.4% above this industry median. Based on the distribution chart, MBS ranks #303 out of 1773 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, MBS has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MBS's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, MBS ranks #303 out of 1773 companies for Operating Margin %. This places MBS in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.92. MBS's value of 15.83% is 167.4% above this benchmark. Historically, MBS's own Operating Margin % has ranged from 7.07 to 14.35 over the past decade. While the company's 10-year median is 10.57 vs. the industry median of 5.92, MBS 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 a Construction company?
The median Operating Margin % among Construction companies is 5.92, based on 1,773 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. MBS's current Operating Margin % of 15.83% is 167.4% 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 MBS and its competitors. For the Construction industry, the median Operating Margin % is 5.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MBS's current Operating Margin % is 15.83%, which is 50% above median its own 10-year median of 10.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MBS stock overvalued right now?
Based on GuruFocus' analysis, MBS (TSE:1401) is currently considered Significantly Overvalued. The stock's GF Value™ is 円930.18, compared to a current price of 円1,298.00 — trading 39.5% above its estimated fair value. The current Operating Margin % is 15.83%, which is 50% above median its 10-year median of 10.57 and 167.4% above the Construction industry median of 5.92. MBS's overall GF Score™ is 83/100 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 MBS (TSE:1401), the current Operating Margin % is 15.83% 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 MBS (TSE:1401) Overvalued in 2026?
Based on GuruFocus' analysis, MBS stock appears to be overvalued.
The current stock price of 円1,298.00 is trading 39.5% above its estimated GF Value™ of 円930.18.
GuruFocus considers MBS to be Significantly Overvalued.
Key valuation signals for TSE:1401:
Operating Margin %: 15.83% (50% above median its 10-year median of 10.57)
GF Value™: 円930.18 vs. price of 円1,298.00 (39.5% above fair value)
Industry Position: 167.4% above the Construction median (#303 of 1773)
No single metric tells the full story. See the TSE:1401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MBS Inc is a Japanese firm engaged in exterior and interior decoration of houses and buildings. It develops and sells functional paint and offers construction work. It also provides disaster prevention coating.
83GF Score
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