Sekisui HouseTSE:1928 +2.28%90 Operating Margin % is 8.37% as of Apr. 2026, which is 4% below its 10-year median of 8.74. GuruFocus rates TSE:1928 with a GF Score™ of 90/100 and a GF Value™ of 円4,141.83 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 91 Homebuilding & Construction companies, Sekisui House ranks better than 53.85% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Sekisui House's Operating Income for the
three
months ended in Apr. 2026 was 円76,105 Mil. Sekisui House's Revenue for the
three
months ended in Apr. 2026 was 円908,878 Mil. Therefore, Sekisui House's Operating Margin % for the quarter that ended in Apr. 2026 was 8.37%.
Good Sign:
Sekisui House Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Sekisui House's Operating Margin % or its related term are showing as below:
TSE:1928'
s Operating Margin % Range Over the Past 10 Years
Min: 7.62 Med: 8.74 Max: 9.09
Current: 8.48
TSE:1928's Operating Margin % is ranked better than 53.85% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 7.76
vs TSE:1928: 8.48
Sekisui House's 5-Year Average Operating Margin % Growth Rate was 0.10% per year.
Sekisui House's Operating Income for the
three
months ended in Apr. 2026 was 円76,105 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was 円357,221 Mil.
Sekisui House (TSE:1928) 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.
Sekisui House Operating Margin % Related Terms
Sekisui House Operating Margin % Historical Data
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The historical data trend for Sekisui House'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:1928 vs DHI, PHM, LEN: Operating Margin % Comparison
For the Residential Construction subindustry, Sekisui House'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.
Sekisui House Operating Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sekisui House's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sekisui House'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.
Sekisui House's Operating Margin % for the fiscal year that ended in Jan. 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.
Sekisui House (TSE:1928) has a Operating Margin % of 8.37% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sekisui House and its competitors. This is near median its historical median of 8.74. Over the past decade, Sekisui House's Operating Margin % has ranged from 7.62 to 9.09. According to the industry distribution chart, Sekisui House ranks #42 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 46.2%.
Is Sekisui House's Operating Margin % too high?
Sekisui House's current Operating Margin % of 8.37% is near median its 10-year median of 8.74. Over the past 10 years, this metric has ranged from a low of 7.62 to a high of 9.09. The Homebuilding & Construction industry median Operating Margin % is 7.76. Sekisui House's value of 8.37% is 7.9% above this industry median. Based on the distribution chart, Sekisui House ranks #42 out of 91 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sekisui House has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sekisui House's Operating Margin % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sekisui House ranks #42 out of 91 companies for Operating Margin %. This puts Sekisui House in the upper half of its industry. The industry median Operating Margin % is 7.76. Sekisui House's value of 8.37% is 7.9% above this benchmark. Historically, Sekisui House's own Operating Margin % has ranged from 7.62 to 9.09 over the past decade. While the company's 10-year median is 8.74 vs. the industry median of 7.76, Sekisui House 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. Sekisui House's current Operating Margin % of 8.37% is 7.9% 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 Sekisui House 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. Sekisui House's current Operating Margin % is 8.37%, which is near median its own 10-year median of 8.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sekisui House stock overvalued right now?
Based on GuruFocus' analysis, Sekisui House (TSE:1928) is currently considered Modestly Undervalued. The stock's GF Value™ is 円4,141.83, compared to a current price of 円3,280.00 — trading 20.8% below its estimated fair value. The current Operating Margin % is 8.37%, which is near median its 10-year median of 8.74 and 7.9% above the Homebuilding & Construction industry median of 7.76. Sekisui House's overall GF Score™ is 90/100 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 Sekisui House (TSE:1928), the current Operating Margin % is 8.37% 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 Sekisui House (TSE:1928) Overvalued in 2026?
Based on GuruFocus' analysis, Sekisui House stock appears to be undervalued.
The current stock price of 円3,280.00 is trading 20.8% below its estimated GF Value™ of 円4,141.83.
GuruFocus considers Sekisui House to be Modestly Undervalued.
Key valuation signals for TSE:1928:
Operating Margin %: 8.37% (near median its 10-year median of 8.74)
GF Value™: 円4,141.83 vs. price of 円3,280.00 (20.8% below fair value)
Industry Position: 7.9% above the Homebuilding & Construction median (#42 of 91)
No single metric tells the full story. See the TSE:1928 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sekisui House Ltd company's activities includes equity-method affiliates, is involved in the Custom Detached Houses Business, Rental Housing and Commercial Buildings Business, Architectural/Civil Engineering Business, Rental Housing Management Business, Remodeling Business, Development Business, Overseas Business, and carries out related business activities. Segments includes Custom detached houses Business, Rental housing and commercial buildings Business, Architectural / Civil engineering Business, Rental housing management Business, Remodeling Business, Development Business, and Overseas Business of which majority of revenue comes from Rental housing and commercial buildings Business.
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