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Heiwa Real Estate Co (TSE:8803) Operating Margin % : 22.57% (As of Dec. 2023)


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What is Heiwa Real Estate Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Heiwa Real Estate Co's Operating Income for the three months ended in Dec. 2023 was 円1,698 Mil. Heiwa Real Estate Co's Revenue for the three months ended in Dec. 2023 was 円7,524 Mil. Therefore, Heiwa Real Estate Co's Operating Margin % for the quarter that ended in Dec. 2023 was 22.57%.

Good Sign:

Heiwa Real Estate Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

TSE:8803' s Operating Margin % Range Over the Past 10 Years
Min: 21.82   Med: 23.95   Max: 32.05
Current: 29.31


TSE:8803's Operating Margin % is ranked better than
71.57% of 1780 companies
in the Real Estate industry
Industry Median: 13.195 vs TSE:8803: 29.31

Heiwa Real Estate Co's 5-Year Average Operating Margin % Growth Rate was 2.30% per year.

Heiwa Real Estate Co's Operating Income for the three months ended in Dec. 2023 was 円1,698 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円13,025 Mil.


Heiwa Real Estate Co Operating Margin % Historical Data

The historical data trend for Heiwa Real Estate 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.

* Premium members only.

Heiwa Real Estate Co Operating Margin % Chart

Heiwa Real Estate Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.38 32.05 21.82 24.23 29.31

Heiwa Real Estate Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.86 42.90 21.32 22.57 23.78

Competitive Comparison of Heiwa Real Estate Co's Operating Margin %

For the Real Estate - Diversified subindustry, Heiwa Real Estate 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.


Heiwa Real Estate Co's Operating Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Heiwa Real Estate Co's Operating Margin % distribution charts can be found below:

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



Heiwa Real Estate 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.

Heiwa Real Estate Co's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=13025 / 44433
=29.31 %

Heiwa Real Estate Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1698 / 7524
=22.57 %

* 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.


Heiwa Real Estate Co  (TSE:8803) 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.


Heiwa Real Estate Co Operating Margin % Related Terms

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Heiwa Real Estate Co (TSE:8803) Business Description

Traded in Other Exchanges
Address
1-10, Nihonbashi Kabuto-cho, Chuo-ku, Tokyo, JPN, 103-8222
Heiwa Real Estate Co Ltd is primarily engaged in the leasing and development of real estate properties. The company's operates three reporting segments. The leasing business consists of ownership, leasing, management, and operation of stock exchanges, offices, commercial facilities, housing, conference venues, restaurants, and others. The real estate solutions segment consists of the development, operation and management of income property; the development and sale of houses; and the brokerage of real estate. The other businesses segment manages and renovates buildings and also operates an insurance agency and a private nursing-home business.

Heiwa Real Estate Co (TSE:8803) Headlines

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