Mori-Gumi CoTSE:1853 +0.31%67 Operating Margin % is 7.43% as of Mar. 2026, which is 42% above its 10-year median of 5.22. GuruFocus rates TSE:1853 with a GF Score™ of 67/100 and a GF Value™ of 円329.44 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,764 Construction companies, Mori-Gumi Co ranks worse than 57.48% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Mori-Gumi Co's Operating Income for the
six
months ended in Mar. 2026 was 円1,089 Mil. Mori-Gumi Co's Revenue for the
six
months ended in Mar. 2026 was 円14,658 Mil. Therefore, Mori-Gumi Co's Operating Margin % for the quarter that ended in Mar. 2026 was 7.43%.
Warning Sign:
Mori-Gumi Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.7%.
The historical rank and industry rank for Mori-Gumi Co's Operating Margin % or its related term are showing as below:
TSE:1853'
s Operating Margin % Range Over the Past 10 Years
Min: 3.42 Med: 5.22 Max: 9.23
Current: 4.81
TSE:1853's Operating Margin % is ranked worse than 57.48% of 1764
companies
in the Construction industry
Industry Median: 5.89
vs TSE:1853: 4.81
Mori-Gumi Co's 5-Year Average Operating Margin % Growth Rate was -8.70% per year.
Mori-Gumi Co's Operating Income for the
six
months ended in Mar. 2026 was 円1,089 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,348 Mil.
Mori-Gumi Co (TSE:1853) 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.
Mori-Gumi Co Operating Margin % Related Terms
Mori-Gumi Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Mori-Gumi Co'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:1853 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Mori-Gumi 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.
Mori-Gumi Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Mori-Gumi Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mori-Gumi Co'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.
Mori-Gumi 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.
Mori-Gumi Co (TSE:1853) has a Operating Margin % of 7.43% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Mori-Gumi Co and its competitors. This is 42% above median its historical median of 5.22. Over the past decade, Mori-Gumi Co's Operating Margin % has ranged from 3.42 to 9.23. According to the industry distribution chart, Mori-Gumi Co ranks #1014 out of 1764 companies in the Construction industry, placing it in the top 57.5%.
Is Mori-Gumi Co's Operating Margin % too high?
Mori-Gumi Co's current Operating Margin % of 7.43% is 42% above median its 10-year median of 5.22. Over the past 10 years, this metric has ranged from a low of 3.42 to a high of 9.23. The Construction industry median Operating Margin % is 5.89. Mori-Gumi Co's value of 7.43% is 26.1% above this industry median. Based on the distribution chart, Mori-Gumi Co ranks #1014 out of 1764 companies in the Construction industry, which is below the industry midpoint. Overall, Mori-Gumi Co has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mori-Gumi Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Mori-Gumi Co ranks #1014 out of 1764 companies for Operating Margin %. This places Mori-Gumi Co in the lower half of its industry. The industry median Operating Margin % is 5.89. Mori-Gumi Co's value of 7.43% is 26.1% above this benchmark. Historically, Mori-Gumi Co's own Operating Margin % has ranged from 3.42 to 9.23 over the past decade. While the company's 10-year median is 5.22 vs. the industry median of 5.89, Mori-Gumi Co 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 5.89, based on 1,764 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. Mori-Gumi Co's current Operating Margin % of 7.43% is 26.1% 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 Mori-Gumi Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mori-Gumi Co's current Operating Margin % is 7.43%, which is 42% above median its own 10-year median of 5.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mori-Gumi Co stock overvalued right now?
Based on GuruFocus' analysis, Mori-Gumi Co (TSE:1853) is currently considered Fairly Valued. The stock's GF Value™ is 円329.44, compared to a current price of 円326.00 — trading 1% below its estimated fair value. The current Operating Margin % is 7.43%, which is 42% above median its 10-year median of 5.22 and 26.1% above the Construction industry median of 5.89. Mori-Gumi Co's overall GF Score™ is 67/100 with 3 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 Mori-Gumi Co (TSE:1853), the current Operating Margin % is 7.43% 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 Mori-Gumi Co (TSE:1853) Overvalued in 2026?
Based on GuruFocus' analysis, Mori-Gumi Co stock appears to be undervalued.
The current stock price of 円326.00 is trading 1% below its estimated GF Value™ of 円329.44.
GuruFocus considers Mori-Gumi Co to be Fairly Valued.
Key valuation signals for TSE:1853:
Operating Margin %: 7.43% (42% above median its 10-year median of 5.22)
GF Value™: 円329.44 vs. price of 円326.00 (1% below fair value)
Industry Position: 26.1% above the Construction median (#1014 of 1764)
No single metric tells the full story. See the TSE:1853 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mori-Gumi Co Ltd operates in three divisions - Construction business, which is engaged in civil engineering, architecture, and other general construction work-related businesses; Crushed stone division, which is engaged in the manufacture and sale of crushed stone, crushed sand, etc., and brokerage of transactions.; and Real estate division is engaged in the development, purchase and sale, exchange, and rental of real estate, as well as the agency and brokerage of these businesses.
67GF Score
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