ChoeiTSE:2993 -1.15%64 Operating Margin % is 18.40% as of Mar. 2026, which is 19% below its 10-year median of 22.58. GuruFocus rates TSE:2993 with a GF Score™ of 64/100 and a GF Value™ of 円2,470.03 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,744 Real Estate companies, Choei ranks better than 58.03% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Choei's Operating Income for the
six
months ended in Mar. 2026 was 円1,058 Mil. Choei's Revenue for the
six
months ended in Mar. 2026 was 円5,752 Mil. Therefore, Choei's Operating Margin % for the quarter that ended in Mar. 2026 was 18.40%.
Warning Sign:
Choei Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6.3%.
The historical rank and industry rank for Choei's Operating Margin % or its related term are showing as below:
TSE:2993'
s Operating Margin % Range Over the Past 10 Years
Min: 17.88 Med: 22.58 Max: 25.42
Current: 17.88
TSE:2993's Operating Margin % is ranked better than 58.03% of 1744
companies
in the Real Estate industry
Industry Median: 13.31
vs TSE:2993: 17.88
Choei's 5-Year Average Operating Margin % Growth Rate was -6.30% per year.
Choei's Operating Income for the
six
months ended in Mar. 2026 was 円1,058 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,969 Mil.
Choei (TSE:2993) 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.
Choei Operating Margin % Related Terms
Choei Operating Margin % Historical Data
* Premium members only.
The historical data trend for Choei'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:2993 vs CBRE, BEKE, JLL: Operating Margin % Comparison
For the Real Estate Services subindustry, Choei'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.
Choei Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Choei's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Choei'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.
Choei'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.
Choei (TSE:2993) has a Operating Margin % of 18.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Choei and its competitors. This is 19% below median its historical median of 22.58. Over the past decade, Choei's Operating Margin % has ranged from 17.88 to 25.42. According to the industry distribution chart, Choei ranks #732 out of 1744 companies in the Real Estate industry, placing it in the top 42%.
Is Choei's Operating Margin % too high?
Choei's current Operating Margin % of 18.40% is 19% below median its 10-year median of 22.58. Over the past 10 years, this metric has ranged from a low of 17.88 to a high of 25.42. The Real Estate industry median Operating Margin % is 13.31. Choei's value of 18.40% is 38.2% above this industry median. Based on the distribution chart, Choei ranks #732 out of 1744 companies in the Real Estate industry, which is above the industry midpoint. Overall, Choei has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Choei's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Choei ranks #732 out of 1744 companies for Operating Margin %. This puts Choei in the upper half of its industry. The industry median Operating Margin % is 13.31. Choei's value of 18.40% is 38.2% above this benchmark. Historically, Choei's own Operating Margin % has ranged from 17.88 to 25.42 over the past decade. While the company's 10-year median is 22.58 vs. the industry median of 13.31, Choei 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.31, based on 1,744 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. Choei's current Operating Margin % of 18.40% is 38.2% 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 Choei and its competitors. For the Real Estate industry, the median Operating Margin % is 13.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choei's current Operating Margin % is 18.40%, which is 19% below median its own 10-year median of 22.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choei stock overvalued right now?
Based on GuruFocus' analysis, Choei (TSE:2993) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,470.03, compared to a current price of 円2,150.00 — trading 13% below its estimated fair value. The current Operating Margin % is 18.40%, which is 19% below median its 10-year median of 22.58 and 38.2% above the Real Estate industry median of 13.31. Choei's overall GF Score™ is 64/100 with 6 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 Choei (TSE:2993), the current Operating Margin % is 18.40% 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 Choei (TSE:2993) Overvalued in 2026?
Based on GuruFocus' analysis, Choei stock appears to be undervalued.
The current stock price of 円2,150.00 is trading 13% below its estimated GF Value™ of 円2,470.03.
GuruFocus considers Choei to be Modestly Undervalued.
Key valuation signals for TSE:2993:
Operating Margin %: 18.40% (19% below median its 10-year median of 22.58)
GF Value™: 円2,470.03 vs. price of 円2,150.00 (13% below fair value)
Industry Position: 38.2% above the Real Estate median (#732 of 1744)
No single metric tells the full story. See the TSE:2993 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Choei Inc is engaged in the real estate management and real estate rental businesses. The real estate management business provides necessary services for rental property management, such as building maintenance, renovation work, and rental brokerage (leasing), in addition to tenant management, and the real estate rental business mainly handles the rental of its properties and subleased properties. The company's reportable segments are Property Rental Business, which generates the maximum revenue, and the Property Management Business.
64GF Score
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