ITO ENTSE:2593 +0.73%73 Operating Margin % is 4.23% as of Oct. 2025, which is 7% below its 10-year median of 4.54. GuruFocus rates TSE:2593 with a GF Score™ of 73/100 and a GF Value™ of 円4,173.27 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 116 Beverages - Non-Alcoholic companies, ITO EN ranks worse than 71.55% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. ITO EN's Operating Income for the
three
months ended in Oct. 2025 was 円5,573 Mil. ITO EN's Revenue for the
three
months ended in Oct. 2025 was 円131,603 Mil. Therefore, ITO EN's Operating Margin % for the quarter that ended in Oct. 2025 was 4.23%.
Good Sign:
ITO EN Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for ITO EN's Operating Margin % or its related term are showing as below:
TSE:2593'
s Operating Margin % Range Over the Past 10 Years
Min: 3.7 Med: 4.54 Max: 5.51
Current: 4.3
TSE:2593's Operating Margin % is ranked worse than 71.55% of 116
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 8.975
vs TSE:2593: 4.30
ITO EN's 5-Year Average Operating Margin % Growth Rate was 5.70% per year.
ITO EN's Operating Income for the
three
months ended in Oct. 2025 was 円5,573 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2025 was 円21,128 Mil.
ITO EN (TSE:2593) 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.
ITO EN Operating Margin % Related Terms
ITO EN Operating Margin % Historical Data
* Premium members only.
The historical data trend for ITO EN'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:2593 vs KO, PEP, MNST: Operating Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, ITO EN'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.
ITO EN Operating Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, ITO EN's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ITO EN'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.
ITO EN's Operating Margin % for the fiscal year that ended in Apr. 2025 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.
ITO EN (TSE:2593) has a Operating Margin % of 4.23% as of Oct. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on ITO EN and its competitors. This is near median its historical median of 4.54. Over the past decade, ITO EN's Operating Margin % has ranged from 3.70 to 5.51. According to the industry distribution chart, ITO EN ranks #83 out of 116 companies in the Beverages - Non-Alcoholic industry, placing it in the top 71.6%.
Is ITO EN's Operating Margin % too high?
ITO EN's current Operating Margin % of 4.23% is near median its 10-year median of 4.54. Over the past 10 years, this metric has ranged from a low of 3.70 to a high of 5.51. The Beverages - Non-Alcoholic industry median Operating Margin % is 8.98. ITO EN's value of 4.23% is 52.9% below this industry median. Based on the distribution chart, ITO EN ranks #83 out of 116 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, ITO EN has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ITO EN's Operating Margin % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, ITO EN ranks #83 out of 116 companies for Operating Margin %. This places ITO EN in the lower half of its industry. The industry median Operating Margin % is 8.98. ITO EN's value of 4.23% is 52.9% below this benchmark. Historically, ITO EN's own Operating Margin % has ranged from 3.70 to 5.51 over the past decade. While the company's 10-year median is 4.54 vs. the industry median of 8.98, ITO EN 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 Beverages - Non-Alcoholic company?
The median Operating Margin % among Beverages - Non-Alcoholic companies is 8.98, based on 116 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. ITO EN's current Operating Margin % of 4.23% is 52.9% 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 ITO EN and its competitors. For the Beverages - Non-Alcoholic industry, the median Operating Margin % is 8.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITO EN's current Operating Margin % is 4.23%, which is near median its own 10-year median of 4.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITO EN stock overvalued right now?
Based on GuruFocus' analysis, ITO EN (TSE:2593) is currently considered Significantly Undervalued. The stock's GF Value™ is 円4,173.27, compared to a current price of 円2,846.00 — trading 31.8% below its estimated fair value. The current Operating Margin % is 4.23%, which is near median its 10-year median of 4.54 and 52.9% below the Beverages - Non-Alcoholic industry median of 8.98. ITO EN's overall GF Score™ is 73/100 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 ITO EN (TSE:2593), the current Operating Margin % is 4.23% as of Oct. 2025. 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 ITO EN (TSE:2593) Overvalued in 2026?
Based on GuruFocus' analysis, ITO EN stock appears to be undervalued.
The current stock price of 円2,846.00 is trading 31.8% below its estimated GF Value™ of 円4,173.27.
GuruFocus considers ITO EN to be Significantly Undervalued.
Key valuation signals for TSE:2593:
Operating Margin %: 4.23% (near median its 10-year median of 4.54)
GF Value™: 円4,173.27 vs. price of 円2,846.00 (31.8% below fair value)
Industry Position: 52.9% below the Beverages - Non-Alcoholic median (#83 of 116)
No single metric tells the full story. See the TSE:2593 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITO EN Ltd makes beverages and other tea and nutritional products that it sells in Japan. Ito En primarily sells green tea products, including ready-to-drink beverages, tea bags, and other tea leaf products, under its Oi Ocha brand. Other beverages the company sells include black tea, Chinese tea, coffee, vegetable beverages, fruit beverages, mineral water, and functional beverages. The Leaf- and Drink-Related business segment makes up roughly 90% of the company's total revenue. Most remaining revenue is generated from Ito En's restaurant business, which operates hundreds of Tully's coffee shops in Japan.
73GF Score
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