Kensoh CoTSE:7939 -0.17%73 Operating Margin % is 4.90% as of Mar. 2026, which is 1% above its 10-year median of 4.86. GuruFocus rates TSE:7939 with a GF Score™ of 73/100 and a GF Value™ of 円579.20 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,070 Business Services companies, Kensoh Co ranks worse than 60.09% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Kensoh Co's Operating Income for the
six
months ended in Mar. 2026 was 円171 Mil. Kensoh Co's Revenue for the
six
months ended in Mar. 2026 was 円3,478 Mil. Therefore, Kensoh Co's Operating Margin % for the quarter that ended in Mar. 2026 was 4.90%.
Warning Sign:
Kensoh Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Kensoh Co's Operating Margin % or its related term are showing as below:
TSE:7939'
s Operating Margin % Range Over the Past 10 Years
Min: 3.9 Med: 4.86 Max: 6.56
Current: 4.02
TSE:7939's Operating Margin % is ranked worse than 60.09% of 1070
companies
in the Business Services industry
Industry Median: 6.33
vs TSE:7939: 4.02
Kensoh Co's 5-Year Average Operating Margin % Growth Rate was -1.80% per year.
Kensoh Co's Operating Income for the
six
months ended in Mar. 2026 was 円171 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円258 Mil.
Kensoh Co (TSE:7939) 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.
Kensoh Co Operating Margin % Related Terms
Kensoh Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Kensoh 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:7939 vs CTAS, CPRT, GPN: Operating Margin % Comparison
For the Specialty Business Services subindustry, Kensoh 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.
Kensoh Co Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Kensoh Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kensoh 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.
Kensoh 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.
Kensoh Co (TSE:7939) has a Operating Margin % of 4.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kensoh Co and its competitors. This is near median its historical median of 4.86. Over the past decade, Kensoh Co's Operating Margin % has ranged from 3.90 to 6.56. According to the industry distribution chart, Kensoh Co ranks #643 out of 1070 companies in the Business Services industry, placing it in the top 60.1%.
Is Kensoh Co's Operating Margin % too high?
Kensoh Co's current Operating Margin % of 4.90% is near median its 10-year median of 4.86. Over the past 10 years, this metric has ranged from a low of 3.90 to a high of 6.56. The Business Services industry median Operating Margin % is 6.33. Kensoh Co's value of 4.90% is 22.6% below this industry median. Based on the distribution chart, Kensoh Co ranks #643 out of 1070 companies in the Business Services industry, which is below the industry midpoint. Overall, Kensoh Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kensoh Co's Operating Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Kensoh Co ranks #643 out of 1070 companies for Operating Margin %. This places Kensoh Co in the lower half of its industry. The industry median Operating Margin % is 6.33. Kensoh Co's value of 4.90% is 22.6% below this benchmark. Historically, Kensoh Co's own Operating Margin % has ranged from 3.90 to 6.56 over the past decade. While the company's 10-year median is 4.86 vs. the industry median of 6.33, Kensoh 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 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. Kensoh Co's current Operating Margin % of 4.90% is 22.6% 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 Kensoh Co and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kensoh Co's current Operating Margin % is 4.90%, which is near median its own 10-year median of 4.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kensoh Co stock overvalued right now?
Based on GuruFocus' analysis, Kensoh Co (TSE:7939) is currently considered Fairly Valued. The stock's GF Value™ is 円579.20, compared to a current price of 円575.00 — trading 0.7% below its estimated fair value. The current Operating Margin % is 4.90%, which is near median its 10-year median of 4.86 and 22.6% below the Business Services industry median of 6.33. Kensoh Co's overall GF Score™ is 73/100 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 Kensoh Co (TSE:7939), the current Operating Margin % is 4.90% 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 Kensoh Co (TSE:7939) Overvalued in 2026?
Based on GuruFocus' analysis, Kensoh Co stock appears to be undervalued.
The current stock price of 円575.00 is trading 0.7% below its estimated GF Value™ of 円579.20.
GuruFocus considers Kensoh Co to be Fairly Valued.
Key valuation signals for TSE:7939:
Operating Margin %: 4.90% (near median its 10-year median of 4.86)
GF Value™: 円579.20 vs. price of 円575.00 (0.7% below fair value)
Industry Position: 22.6% below the Business Services median (#643 of 1070)
No single metric tells the full story. See the TSE:7939 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kensoh Co Ltd is a Japanese company engaged in manufacturing and selling metal sign products for corporations. Its products include corporate names, billboards, and nameplates for buildings. The company also manufactures and wholesales machinery to create metal signs.
73GF 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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