HitoMile Co (TSE:7686) Operating Margin %: 1.50% (As of Mar. 2026) — 29% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:7686 HitoMile Co Ltd TSE:7686
74 GF Score
Price 円417.00
GF Value 円539.76
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is HitoMile Co Operating Margin %?

HitoMile Co TSE:7686 74 Operating Margin % is 1.50% as of Mar. 2026, which is 29% above its 10-year median of 1.16. GuruFocus rates TSE:7686 with a GF Score™ of 74/100 and a GF Value™ of 円539.76 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 311 Retail - Defensive companies, HitoMile Co ranks worse than 70.42% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. HitoMile Co's Operating Income for the six months ended in Mar. 2026 was 円1,062 Mil. HitoMile Co's Revenue for the six months ended in Mar. 2026 was 円70,616 Mil. Therefore, HitoMile Co's Operating Margin % for the quarter that ended in Mar. 2026 was 1.50%.

The historical rank and industry rank for HitoMile Co's Operating Margin % or its related term are showing as below:

TSE:7686' s Operating Margin % Range Over the Past 10 Years
Min: -3.89   Med: 1.16   Max: 2.22
Current: 1.41


TSE:7686's Operating Margin % is ranked worse than
70.42% of 311 companies
in the Retail - Defensive industry
Industry Median: 3.28 vs TSE:7686: 1.41

HitoMile Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

HitoMile Co's Operating Income for the six months ended in Mar. 2026 was 円1,062 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,972 Mil.


HitoMile Co  (TSE:7686) 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 Nokia’s 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.


HitoMile Co Operating Margin % Related Terms


HitoMile Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for HitoMile 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.

HitoMile Co Operating Margin % Chart

HitoMile Co Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only -3.89 0.70 2.22 1.32 1.41

HitoMile Co Semi-Annual Data
Mar18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.64 1.14 1.50 1.31 1.50

TSE:7686 vs SYY, USFD, PFGC: Operating Margin % Comparison

For the Food Distribution subindustry, HitoMile 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.


HitoMile Co Operating Margin % vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, HitoMile Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where HitoMile Co's Operating Margin % falls into.


TSE:7686
74GF Score
HitoMile Co Ltd TSE:7686
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

HitoMile 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.

HitoMile Co's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=1972 / 139837
=1.41 %

HitoMile Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=1062 / 70616
=1.50 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 1.50% mean?
HitoMile Co (TSE:7686) has a Operating Margin % of 1.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on HitoMile Co and its competitors. This is 29% above median its historical median of 1.16. According to the industry distribution chart, HitoMile Co ranks #219 out of 311 companies in the Retail - Defensive industry, placing it in the top 70.4%.
Is HitoMile Co's Operating Margin % too high?
HitoMile Co's current Operating Margin % of 1.50% is 29% above median its 10-year median of 1.16. The Retail - Defensive industry median Operating Margin % is 3.28. HitoMile Co's value of 1.50% is 54.3% below this industry median. Based on the distribution chart, HitoMile Co ranks #219 out of 311 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, HitoMile Co has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HitoMile Co's Operating Margin % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, HitoMile Co ranks #219 out of 311 companies for Operating Margin %. This places HitoMile Co in the lower half of its industry. The industry median Operating Margin % is 3.28. HitoMile Co's value of 1.50% is 54.3% below this benchmark. While the company's 10-year median is 1.16 vs. the industry median of 3.28, HitoMile 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 - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 311 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. HitoMile Co's current Operating Margin % of 1.50% is 54.3% 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 HitoMile Co and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HitoMile Co's current Operating Margin % is 1.50%, which is 29% above median its own 10-year median of 1.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HitoMile Co stock overvalued right now?
Based on GuruFocus' analysis, HitoMile Co (TSE:7686) is currently considered Modestly Undervalued. The stock's GF Value™ is 円539.76, compared to a current price of 円417.00 — trading 22.7% below its estimated fair value. The current Operating Margin % is 1.50%, which is 29% above median its 10-year median of 1.16 and 54.3% below the Retail - Defensive industry median of 3.28. HitoMile Co's overall GF Score™ is 74/100 with 2 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 HitoMile Co (TSE:7686), the current Operating Margin % is 1.50% 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 HitoMile Co (TSE:7686) Overvalued in 2026?

Based on GuruFocus' analysis, HitoMile Co stock appears to be undervalued. The current stock price of 円417.00 is trading 22.7% below its estimated GF Value™ of 円539.76. GuruFocus considers HitoMile Co to be Modestly Undervalued.

Key valuation signals for TSE:7686:

  • Operating Margin %: 1.50% (29% above median its 10-year median of 1.16)
  • GF Value™: 円539.76 vs. price of 円417.00 (22.7% below fair value)
  • GF Score™: 74/100 with 2 warning signs
  • Industry Position: 54.3% below the Retail - Defensive median (#219 of 311)

No single metric tells the full story. See the TSE:7686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


HitoMile Co Business Description

Address 2-3-1, Toshima, Kita-ku, Tokyo, JPN
HitoMile Co Ltd is engaged in wholesaling and retailing of alcoholic beverages and other food products. The company sells alcoholic beverages, seasonings and food materials to restaurants in Tokyo. Its segments include: Time-Slot Delivery Business; Delivery Business; Storefront Sales Business; and Other Business.
74GF Score

Get the complete analysis for TSE:7686

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円417.00
Price
円539.76
GF Value