Nihon House Holdings CoTSE:1873 -0.66%61 Operating Margin % is 12.26% as of Apr. 2026, which is 95% above its 10-year median of 6.29. GuruFocus rates TSE:1873 with a GF Score™ of 61/100 and a GF Value™ of 円263.46 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 91 Homebuilding & Construction companies, Nihon House Holdings Co ranks better than 50.55% on this metric.
The historical rank and industry rank for Nihon House Holdings Co's Operating Margin % or its related term are showing as below:
TSE:1873'
s Operating Margin % Range Over the Past 10 Years
Min: -14.01 Med: 6.29 Max: 9.13
Current: 8.04
TSE:1873's Operating Margin % is ranked better than 50.55% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 7.76
vs TSE:1873: 8.04
Nihon House Holdings Co (TSE:1873) 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.
Nihon House Holdings Co Operating Margin % Related Terms
Nihon House Holdings Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nihon House Holdings 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:1873 vs DHI, PHM, LEN: Operating Margin % Comparison
For the Residential Construction subindustry, Nihon House 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.
Nihon House Holdings Co Operating Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Nihon House Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nihon House Holdings Co's Operating Margin % falls into.
Nihon House 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.
Nihon House Holdings Co's Operating Margin % for the fiscal year that ended in Apr. 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.
Nihon House Holdings Co (TSE:1873) has a Operating Margin % of 12.26% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nihon House Holdings Co and its competitors. This is 95% above median its historical median of 6.29. According to the industry distribution chart, Nihon House Holdings Co ranks #45 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 49.5%.
Is Nihon House Holdings Co's Operating Margin % too high?
Nihon House Holdings Co's current Operating Margin % of 12.26% is 95% above median its 10-year median of 6.29. The Homebuilding & Construction industry median Operating Margin % is 7.76. Nihon House Holdings Co's value of 12.26% is 58% above this industry median. Based on the distribution chart, Nihon House Holdings Co ranks #45 out of 91 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Nihon House Holdings Co has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon House Holdings Co's Operating Margin % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Nihon House Holdings Co ranks #45 out of 91 companies for Operating Margin %. This puts Nihon House Holdings Co in the upper half of its industry. The industry median Operating Margin % is 7.76. Nihon House Holdings Co's value of 12.26% is 58% above this benchmark. While the company's 10-year median is 6.29 vs. the industry median of 7.76, Nihon House Holdings 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 Homebuilding & Construction company?
The median Operating Margin % among Homebuilding & Construction companies is 7.76, based on 91 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. Nihon House Holdings Co's current Operating Margin % of 12.26% is 58% 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 Nihon House Holdings Co and its competitors. For the Homebuilding & Construction industry, the median Operating Margin % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon House Holdings Co's current Operating Margin % is 12.26%, which is 95% above median its own 10-year median of 6.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon House Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon House Holdings Co (TSE:1873) is currently considered Modestly Overvalued. The stock's GF Value™ is 円263.46, compared to a current price of 円303.00 — trading 15% above its estimated fair value. The current Operating Margin % is 12.26%, which is 95% above median its 10-year median of 6.29 and 58% above the Homebuilding & Construction industry median of 7.76. Nihon House Holdings Co's overall GF Score™ is 61/100 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 Nihon House Holdings Co (TSE:1873), the current Operating Margin % is 12.26% as of Apr. 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 Nihon House Holdings Co (TSE:1873) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon House Holdings Co stock appears to be overvalued.
The current stock price of 円303.00 is trading 15% above its estimated GF Value™ of 円263.46.
GuruFocus considers Nihon House Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:1873:
Operating Margin %: 12.26% (95% above median its 10-year median of 6.29)
GF Value™: 円263.46 vs. price of 円303.00 (15% above fair value)
Industry Position: 58% above the Homebuilding & Construction median (#45 of 91)
No single metric tells the full story. See the TSE:1873 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon House Holdings Co Ltd is engaged in businesses related to the residential lifestyle and service industries, such as the housing business, which focuses on contract construction of housing and the development and sale of residential land, and the hotel business, which operates hotel and leisure facilities.
61GF Score
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