Ainavo Holdings CoTSE:7539 +0.87%81 Operating Margin % is 4.52% as of Mar. 2026, which is 65% above its 10-year median of 2.74. GuruFocus rates TSE:7539 with a GF Score™ of 81/100 and a GF Value™ of 円690.46 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,761 Construction companies, Ainavo Holdings Co ranks worse than 67.63% on this metric.
Ainavo Holdings Co (TSE:7539) 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.
Ainavo Holdings Co Operating Margin % Related Terms
Ainavo Holdings Co Operating Margin % Historical Data
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The historical data trend for Ainavo Holdings 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:7539 vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Ainavo Holdings 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.
Ainavo Holdings Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Ainavo Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ainavo Holdings 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.
Ainavo Holdings Co's Operating Margin % for the fiscal year that ended in Sep. 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.
Ainavo Holdings Co (TSE:7539) has a Operating Margin % of 4.52% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ainavo Holdings Co and its competitors. This is 65% above median its historical median of 2.74. Over the past decade, Ainavo Holdings Co's Operating Margin % has ranged from 2.06 to 3.11. According to the industry distribution chart, Ainavo Holdings Co ranks #1191 out of 1761 companies in the Construction industry, placing it in the top 67.6%.
Is Ainavo Holdings Co's Operating Margin % too high?
Ainavo Holdings Co's current Operating Margin % of 4.52% is 65% above median its 10-year median of 2.74. Over the past 10 years, this metric has ranged from a low of 2.06 to a high of 3.11. The Construction industry median Operating Margin % is 5.89. Ainavo Holdings Co's value of 4.52% is 23.3% below this industry median. Based on the distribution chart, Ainavo Holdings Co ranks #1191 out of 1761 companies in the Construction industry, which is below the industry midpoint. Overall, Ainavo Holdings Co has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ainavo Holdings Co's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Ainavo Holdings Co ranks #1191 out of 1761 companies for Operating Margin %. This places Ainavo Holdings Co in the lower half of its industry. The industry median Operating Margin % is 5.89. Ainavo Holdings Co's value of 4.52% is 23.3% below this benchmark. Historically, Ainavo Holdings Co's own Operating Margin % has ranged from 2.06 to 3.11 over the past decade. While the company's 10-year median is 2.74 vs. the industry median of 5.89, Ainavo Holdings 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,761 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. Ainavo Holdings Co's current Operating Margin % of 4.52% is 23.3% 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 Ainavo Holdings Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ainavo Holdings Co's current Operating Margin % is 4.52%, which is 65% above median its own 10-year median of 2.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ainavo Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Ainavo Holdings Co (TSE:7539) is currently considered Modestly Overvalued. The stock's GF Value™ is 円690.46, compared to a current price of 円814.00 — trading 17.9% above its estimated fair value. The current Operating Margin % is 4.52%, which is 65% above median its 10-year median of 2.74 and 23.3% below the Construction industry median of 5.89. Ainavo Holdings Co's overall GF Score™ is 81/100 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 Ainavo Holdings Co (TSE:7539), the current Operating Margin % is 4.52% 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 Ainavo Holdings Co (TSE:7539) Overvalued in 2026?
Based on GuruFocus' analysis, Ainavo Holdings Co stock appears to be overvalued.
The current stock price of 円814.00 is trading 17.9% above its estimated GF Value™ of 円690.46.
GuruFocus considers Ainavo Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:7539:
Operating Margin %: 4.52% (65% above median its 10-year median of 2.74)
GF Value™: 円690.46 vs. price of 円814.00 (17.9% above fair value)
Industry Position: 23.3% below the Construction median (#1191 of 1761)
No single metric tells the full story. See the TSE:7539 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ainavo Holdings Co Ltd is a Japanese based firm engaged in the design, construction contract and sale of wholesale tile and housing equipment, health equipment and air-conditioning equipment, pipe materials, and import stone. Its product portfolio includes tile/stone, siding, roofing material, wooden building, aluminum building material and wooden precut.
81GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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