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WakitaTSE:8125 -0.32%87 Operating Margin % is 3.99% as of Feb. 2026, which is 45% below its 10-year median of 7.31. GuruFocus rates TSE:8125 with a GF Score™ of 87/100 and a GF Value™ of 円1,787.02 (Fairly Valued). The stock has 4 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Wakita ranks worse than 58.85% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Wakita's Operating Income for the
three
months ended in Feb. 2026 was 円966 Mil. Wakita's Revenue for the
three
months ended in Feb. 2026 was 円24,195 Mil. Therefore, Wakita's Operating Margin % for the quarter that ended in Feb. 2026 was 3.99%.
Warning Sign:
Wakita & Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.
The historical rank and industry rank for Wakita's Operating Margin % or its related term are showing as below:
TSE:8125'
s Operating Margin % Range Over the Past 10 Years
Min: 5.67 Med: 7.31 Max: 10.59
Current: 5.76
TSE:8125's Operating Margin % is ranked worse than 58.85% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.02
vs TSE:8125: 5.76
Wakita's 5-Year Average Operating Margin % Growth Rate was -4.50% per year.
Wakita's Operating Income for the
three
months ended in Feb. 2026 was 円966 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円5,460 Mil.
Wakita (TSE:8125) 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.
Wakita Operating Margin % Related Terms
Wakita Operating Margin % Historical Data
* Premium members only.
The historical data trend for Wakita'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:8125 vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Wakita'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.
Wakita Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Wakita's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Wakita'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.
Wakita'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.
Wakita (TSE:8125) has a Operating Margin % of 3.99% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Wakita and its competitors. This is 45% below median its historical median of 7.31. Over the past decade, Wakita's Operating Margin % has ranged from 5.67 to 10.59. According to the industry distribution chart, Wakita ranks #123 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 58.9%.
Is Wakita's Operating Margin % too high?
Wakita's current Operating Margin % of 3.99% is 45% below median its 10-year median of 7.31. Over the past 10 years, this metric has ranged from a low of 5.67 to a high of 10.59. The Farm & Heavy Construction Machinery industry median Operating Margin % is 7.02. Wakita's value of 3.99% is 43.2% below this industry median. Based on the distribution chart, Wakita ranks #123 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Wakita has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Wakita's Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Wakita ranks #123 out of 209 companies for Operating Margin %. This places Wakita in the lower half of its industry. The industry median Operating Margin % is 7.02. Wakita's value of 3.99% is 43.2% below this benchmark. Historically, Wakita's own Operating Margin % has ranged from 5.67 to 10.59 over the past decade. While the company's 10-year median is 7.31 vs. the industry median of 7.02, Wakita 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 7.02, 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. Wakita's current Operating Margin % of 3.99% is 43.2% 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 Wakita and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 7.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wakita's current Operating Margin % is 3.99%, which is 45% below median its own 10-year median of 7.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wakita stock overvalued right now?
Based on GuruFocus' analysis, Wakita (TSE:8125) is currently considered Fairly Valued. The stock's GF Value™ is 円1,787.02, compared to a current price of 円1,883.00 — trading 5.4% above its estimated fair value. The current Operating Margin % is 3.99%, which is 45% below median its 10-year median of 7.31 and 43.2% below the Farm & Heavy Construction Machinery industry median of 7.02. Wakita's overall GF Score™ is 87/100 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 Wakita (TSE:8125), the current Operating Margin % is 3.99% 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 Wakita (TSE:8125) Overvalued in 2026?
Based on GuruFocus' analysis, Wakita stock appears to be overvalued.
The current stock price of 円1,883.00 is trading 5.4% above its estimated GF Value™ of 円1,787.02.
GuruFocus considers Wakita to be Fairly Valued.
Key valuation signals for TSE:8125:
Operating Margin %: 3.99% (45% below median its 10-year median of 7.31)
GF Value™: 円1,787.02 vs. price of 円1,883.00 (5.4% above fair value)
Industry Position: 43.2% below the Farm & Heavy Construction Machinery median (#123 of 209)
No single metric tells the full story. See the TSE:8125 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wakita & Co Ltd is a trading company that manufactures, sells, and leases civil engineering and construction equipment. It also conducts business in diverse fields, including audiovisual equipment, stone materials for construction use, and industrial and commercial facilities and equipment. Wakita provides comprehensive assistance, from construction to finance, for a broad range of industrial facilities and equipment in manufacturing, transportation, communications, agricultural, medical and information communications industries. The company operates through over 70 offices across Japan.
87GF 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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