Kyokuto Kaihatsu Kogyo CoTSE:7226 +0.86%61 Operating Margin % is 6.68% as of Mar. 2026, which is 2% above its 10-year median of 6.52. GuruFocus rates TSE:7226 with a GF Score™ of 61/100 and a GF Value™ of 円3,096.77 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Kyokuto Kaihatsu Kogyo Co ranks worse than 60.77% on this metric.
Kyokuto Kaihatsu Kogyo Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Kyokuto Kaihatsu Kogyo Co's Operating Margin % or its related term are showing as below:
TSE:7226'
s Operating Margin % Range Over the Past 10 Years
Min: 0.88 Med: 6.52 Max: 10.44
Current: 5.5
TSE:7226's Operating Margin % is ranked worse than 60.77% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs TSE:7226: 5.50
Kyokuto Kaihatsu Kogyo Co (TSE:7226) 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.
Kyokuto Kaihatsu Kogyo Co Operating Margin % Related Terms
Kyokuto Kaihatsu Kogyo Co Operating Margin % Historical Data
* 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.
Kyokuto Kaihatsu Kogyo Co Operating Margin % Chart
TSE:7226 vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Kyokuto Kaihatsu Kogyo 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.
Kyokuto Kaihatsu Kogyo Co Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Kyokuto Kaihatsu Kogyo Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kyokuto Kaihatsu Kogyo Co's Operating Margin % falls into.
Kyokuto Kaihatsu Kogyo 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.
Kyokuto Kaihatsu Kogyo Co'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.
Kyokuto Kaihatsu Kogyo Co (TSE:7226) has a Operating Margin % of 6.68% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kyokuto Kaihatsu Kogyo Co and its competitors. This is near median its historical median of 6.52. Over the past decade, Kyokuto Kaihatsu Kogyo Co's Operating Margin % has ranged from 0.88 to 10.44. According to the industry distribution chart, Kyokuto Kaihatsu Kogyo Co ranks #127 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 60.8%.
Is Kyokuto Kaihatsu Kogyo Co's Operating Margin % too high?
Kyokuto Kaihatsu Kogyo Co's current Operating Margin % of 6.68% is near median its 10-year median of 6.52. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 10.44. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Kyokuto Kaihatsu Kogyo Co's value of 6.68% is 1.5% below this industry median. Based on the distribution chart, Kyokuto Kaihatsu Kogyo Co ranks #127 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Kyokuto Kaihatsu Kogyo Co has a GF Score™ of 61/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kyokuto Kaihatsu Kogyo Co's Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Kyokuto Kaihatsu Kogyo Co ranks #127 out of 209 companies for Operating Margin %. This places Kyokuto Kaihatsu Kogyo Co in the lower half of its industry. The industry median Operating Margin % is 6.78. Kyokuto Kaihatsu Kogyo Co's value of 6.68% is 1.5% below this benchmark. Historically, Kyokuto Kaihatsu Kogyo Co's own Operating Margin % has ranged from 0.88 to 10.44 over the past decade. While the company's 10-year median is 6.52 vs. the industry median of 6.78, Kyokuto Kaihatsu Kogyo Co 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 Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 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. Kyokuto Kaihatsu Kogyo Co's current Operating Margin % of 6.68% is 1.5% 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 Kyokuto Kaihatsu Kogyo Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kyokuto Kaihatsu Kogyo Co's current Operating Margin % is 6.68%, which is near median its own 10-year median of 6.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kyokuto Kaihatsu Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Kyokuto Kaihatsu Kogyo Co (TSE:7226) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,096.77, compared to a current price of 円2,119.00 — trading 31.6% below its estimated fair value. The current Operating Margin % is 6.68%, which is near median its 10-year median of 6.52 and 1.5% below the Farm & Heavy Construction Machinery industry median of 6.78. Kyokuto Kaihatsu Kogyo Co's overall GF Score™ is 61/100 with 5 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 Kyokuto Kaihatsu Kogyo Co (TSE:7226), the current Operating Margin % is 6.68% 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 Kyokuto Kaihatsu Kogyo Co (TSE:7226) Overvalued in 2026?
Based on GuruFocus' analysis, Kyokuto Kaihatsu Kogyo Co stock appears to be undervalued.
The current stock price of 円2,119.00 is trading 31.6% below its estimated GF Value™ of 円3,096.77.
GuruFocus considers Kyokuto Kaihatsu Kogyo Co to be Significantly Undervalued.
Key valuation signals for TSE:7226:
Operating Margin %: 6.68% (near median its 10-year median of 6.52)
GF Value™: 円3,096.77 vs. price of 円2,119.00 (31.6% below fair value)
Industry Position: 1.5% below the Farm & Heavy Construction Machinery median (#127 of 209)
No single metric tells the full story. See the TSE:7226 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kyokuto Kaihatsu Kogyo Co Ltd Is a Japan-based company which is various lines of business including specialty truck business, environmental equipment and systems and real estate rental business. It operates is business in three reportable segments namely Specialty truck business, Environmental equipment and systems business and Real estate rental business. Specialty truck business manufactures and distributes specialty trucks such as dump trucks, tailgate lifters, tank trucks, refuse trucks and trailers. Environmental equipment and systems business manufactures and distributes recycle facilities, including maintenance and consignment business. Real estate rental business manufactures multistory parking equipment and offers operating services and real estate rental services.
61GF Score
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