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Kitano ConstructionTSE:1866 -1.40%65 Operating Margin % is 5.22% as of Mar. 2026, which is 1% below its 10-year median of 5.28. GuruFocus rates TSE:1866 with a GF Score™ of 65/100 and a GF Value™ of 円878.18 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,768 Construction companies, Kitano Construction ranks better than 50.17% on this metric.
Kitano Construction (TSE:1866) 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.
Kitano Construction Operating Margin % Related Terms
Kitano Construction Operating Margin % Historical Data
* Premium members only.
The historical data trend for Kitano Construction'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:1866 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Kitano Construction'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.
Kitano Construction Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Kitano Construction's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kitano Construction's Operating Margin % falls into.
Kitano Construction 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.
Kitano Construction'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.
Kitano Construction (TSE:1866) has a Operating Margin % of 5.22% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kitano Construction and its competitors. This is near median its historical median of 5.28. Over the past decade, Kitano Construction's Operating Margin % has ranged from 3.68 to 6.83. According to the industry distribution chart, Kitano Construction ranks #881 out of 1768 companies in the Construction industry, placing it in the top 49.8%.
Is Kitano Construction's Operating Margin % too high?
Kitano Construction's current Operating Margin % of 5.22% is near median its 10-year median of 5.28. Over the past 10 years, this metric has ranged from a low of 3.68 to a high of 6.83. The Construction industry median Operating Margin % is 5.89. Kitano Construction's value of 5.22% is 11.3% below this industry median. Based on the distribution chart, Kitano Construction ranks #881 out of 1768 companies in the Construction industry, which is above the industry midpoint. Overall, Kitano Construction has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kitano Construction's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Kitano Construction ranks #881 out of 1768 companies for Operating Margin %. This puts Kitano Construction in the upper half of its industry. The industry median Operating Margin % is 5.89. Kitano Construction's value of 5.22% is 11.3% below this benchmark. Historically, Kitano Construction's own Operating Margin % has ranged from 3.68 to 6.83 over the past decade. While the company's 10-year median is 5.28 vs. the industry median of 5.89, Kitano Construction 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,768 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. Kitano Construction's current Operating Margin % of 5.22% is 11.3% 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 Kitano Construction 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. Kitano Construction's current Operating Margin % is 5.22%, which is near median its own 10-year median of 5.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kitano Construction stock overvalued right now?
Based on GuruFocus' analysis, Kitano Construction (TSE:1866) is currently considered Modestly Overvalued. The stock's GF Value™ is 円878.18, compared to a current price of 円1,125.00 — trading 28.1% above its estimated fair value. The current Operating Margin % is 5.22%, which is near median its 10-year median of 5.28 and 11.3% below the Construction industry median of 5.89. Kitano Construction's overall GF Score™ is 65/100 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 Kitano Construction (TSE:1866), the current Operating Margin % is 5.22% 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 Kitano Construction (TSE:1866) Overvalued in 2026?
Based on GuruFocus' analysis, Kitano Construction stock appears to be overvalued.
The current stock price of 円1,125.00 is trading 28.1% above its estimated GF Value™ of 円878.18.
GuruFocus considers Kitano Construction to be Modestly Overvalued.
Key valuation signals for TSE:1866:
Operating Margin %: 5.22% (near median its 10-year median of 5.28)
GF Value™: 円878.18 vs. price of 円1,125.00 (28.1% above fair value)
Industry Position: 11.3% below the Construction median (#881 of 1768)
No single metric tells the full story. See the TSE:1866 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kitano Construction Corp provides real estate services in Japan. Its business activities include planning, designing, construction management and consulting of construction work and development of urban, regional and resort projects.
65GF Score
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