Kohnan Shoji CoTSE:7516 +0.38%66 Operating Margin % is 3.03% as of Feb. 2026, which is 42% below its 10-year median of 5.23. GuruFocus rates TSE:7516 with a GF Score™ of 66/100 and a GF Value™ of 円4,379.76 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Kohnan Shoji Co ranks better than 52.48% on this metric.
Kohnan Shoji Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -7.9%.
The historical rank and industry rank for Kohnan Shoji Co's Operating Margin % or its related term are showing as below:
TSE:7516'
s Operating Margin % Range Over the Past 10 Years
Min: 0.84 Med: 5.23 Max: 6.99
Current: 4.31
TSE:7516's Operating Margin % is ranked better than 52.48% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs TSE:7516: 4.31
Kohnan Shoji Co's 5-Year Average Operating Margin % Growth Rate was -7.90% per year.
Kohnan Shoji Co (TSE:7516) 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.
Kohnan Shoji Co Operating Margin % Related Terms
Kohnan Shoji Co Operating Margin % Historical Data
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The historical data trend for Kohnan Shoji 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:7516 vs HD, LOW, FND: Operating Margin % Comparison
For the Home Improvement Retail subindustry, Kohnan Shoji 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.
Kohnan Shoji Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Kohnan Shoji Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kohnan Shoji Co'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.
Kohnan Shoji Co's Operating Margin % for the fiscal year that ended in Feb. 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.
Kohnan Shoji Co (TSE:7516) has a Operating Margin % of 3.03% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kohnan Shoji Co and its competitors. This is 42% below median its historical median of 5.23. Over the past decade, Kohnan Shoji Co's Operating Margin % has ranged from 0.84 to 6.99. According to the industry distribution chart, Kohnan Shoji Co ranks #536 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 47.5%.
Is Kohnan Shoji Co's Operating Margin % too high?
Kohnan Shoji Co's current Operating Margin % of 3.03% is 42% below median its 10-year median of 5.23. Over the past 10 years, this metric has ranged from a low of 0.84 to a high of 6.99. The Retail - Cyclical industry median Operating Margin % is 3.91. Kohnan Shoji Co's value of 3.03% is 22.4% below this industry median. Based on the distribution chart, Kohnan Shoji Co ranks #536 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Kohnan Shoji Co has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kohnan Shoji Co's Operating Margin % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Kohnan Shoji Co ranks #536 out of 1128 companies for Operating Margin %. This puts Kohnan Shoji Co in the upper half of its industry. The industry median Operating Margin % is 3.91. Kohnan Shoji Co's value of 3.03% is 22.4% below this benchmark. Historically, Kohnan Shoji Co's own Operating Margin % has ranged from 0.84 to 6.99 over the past decade. While the company's 10-year median is 5.23 vs. the industry median of 3.91, Kohnan Shoji 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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. Kohnan Shoji Co's current Operating Margin % of 3.03% is 22.4% 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 Kohnan Shoji Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kohnan Shoji Co's current Operating Margin % is 3.03%, which is 42% below median its own 10-year median of 5.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kohnan Shoji Co stock overvalued right now?
Based on GuruFocus' analysis, Kohnan Shoji Co (TSE:7516) is currently considered Fairly Valued. The stock's GF Value™ is 円4,379.76, compared to a current price of 円3,980.00 — trading 9.1% below its estimated fair value. The current Operating Margin % is 3.03%, which is 42% below median its 10-year median of 5.23 and 22.4% below the Retail - Cyclical industry median of 3.91. Kohnan Shoji Co's overall GF Score™ is 66/100 with 4 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 Kohnan Shoji Co (TSE:7516), the current Operating Margin % is 3.03% as of Feb. 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 Kohnan Shoji Co (TSE:7516) Overvalued in 2026?
Based on GuruFocus' analysis, Kohnan Shoji Co stock appears to be undervalued.
The current stock price of 円3,980.00 is trading 9.1% below its estimated GF Value™ of 円4,379.76.
GuruFocus considers Kohnan Shoji Co to be Fairly Valued.
Key valuation signals for TSE:7516:
Operating Margin %: 3.03% (42% below median its 10-year median of 5.23)
GF Value™: 円4,379.76 vs. price of 円3,980.00 (9.1% below fair value)
Industry Position: 22.4% below the Retail - Cyclical median (#536 of 1128)
No single metric tells the full story. See the TSE:7516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kohnan Shoji Co Ltd is a Japan-based company that is principally engaged in the retail of products related to home improvement, housekeeping, and automotive supplies and accessories. The company operates through three store chains with different styles: Home Center, mainly offering DIY products and household goods to improve consumers' home and life; Homestock, a small-format version of Home Center with original brands EDLP and Lifelex; and Kohnan Pro, providing tools, building materials, and working equipment for professionals. The majority of the company's stores are Home Center stores.
66GF Score
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