Tokyo Tatemono CoTSE:8804 +1.51%84 Operating Margin % is 25.70% as of Dec. 2025, which is 50% above its 10-year median of 17.15. GuruFocus rates TSE:8804 with a GF Score™ of 84/100 and a GF Value™ of 円2,887.07 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,745 Real Estate companies, Tokyo Tatemono Co ranks better than 59.66% on this metric.
Tokyo Tatemono Co (TSE:8804) 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.
Tokyo Tatemono Co Operating Margin % Related Terms
Tokyo Tatemono Co Operating Margin % Historical Data
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The historical data trend for Tokyo Tatemono 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:8804 vs CBRE, BEKE: Operating Margin % Comparison
For the Real Estate Services subindustry, Tokyo Tatemono 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.
Tokyo Tatemono Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Tokyo Tatemono Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tokyo Tatemono 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.
Tokyo Tatemono Co's Operating Margin % for the fiscal year that ended in Dec. 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.
Tokyo Tatemono Co (TSE:8804) has a Operating Margin % of 25.70% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tokyo Tatemono Co and its competitors. This is 50% above median its historical median of 17.15. Over the past decade, Tokyo Tatemono Co's Operating Margin % has ranged from 14.29 to 20.18. According to the industry distribution chart, Tokyo Tatemono Co ranks #704 out of 1745 companies in the Real Estate industry, placing it in the top 40.3%.
Is Tokyo Tatemono Co's Operating Margin % too high?
Tokyo Tatemono Co's current Operating Margin % of 25.70% is 50% above median its 10-year median of 17.15. Over the past 10 years, this metric has ranged from a low of 14.29 to a high of 20.18. The Real Estate industry median Operating Margin % is 13.21. Tokyo Tatemono Co's value of 25.70% is 94.5% above this industry median. Based on the distribution chart, Tokyo Tatemono Co ranks #704 out of 1745 companies in the Real Estate industry, which is above the industry midpoint. Overall, Tokyo Tatemono Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokyo Tatemono Co's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Tokyo Tatemono Co ranks #704 out of 1745 companies for Operating Margin %. This puts Tokyo Tatemono Co in the upper half of its industry. The industry median Operating Margin % is 13.21. Tokyo Tatemono Co's value of 25.70% is 94.5% above this benchmark. Historically, Tokyo Tatemono Co's own Operating Margin % has ranged from 14.29 to 20.18 over the past decade. While the company's 10-year median is 17.15 vs. the industry median of 13.21, Tokyo Tatemono Co has consistently been above 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 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. Tokyo Tatemono Co's current Operating Margin % of 25.70% is 94.5% above 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 Tokyo Tatemono Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokyo Tatemono Co's current Operating Margin % is 25.70%, which is 50% above median its own 10-year median of 17.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Tatemono Co stock overvalued right now?
Based on GuruFocus' analysis, Tokyo Tatemono Co (TSE:8804) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,887.07, compared to a current price of 円3,291.00 — trading 14% above its estimated fair value. The current Operating Margin % is 25.70%, which is 50% above median its 10-year median of 17.15 and 94.5% above the Real Estate industry median of 13.21. Tokyo Tatemono Co's overall GF Score™ is 84/100 with 3 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 Tokyo Tatemono Co (TSE:8804), the current Operating Margin % is 25.70% as of Dec. 2025. 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 Tokyo Tatemono Co (TSE:8804) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Tatemono Co stock appears to be overvalued.
The current stock price of 円3,291.00 is trading 14% above its estimated GF Value™ of 円2,887.07.
GuruFocus considers Tokyo Tatemono Co to be Modestly Overvalued.
Key valuation signals for TSE:8804:
Operating Margin %: 25.70% (50% above median its 10-year median of 17.15)
GF Value™: 円2,887.07 vs. price of 円3,291.00 (14% above fair value)
Industry Position: 94.5% above the Real Estate median (#704 of 1745)
No single metric tells the full story. See the TSE:8804 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Tatemono Co Ltd is a Japan-based company engaged in the real estate business. The company operates through three reportable segments: Building Business, Housing Business, and Asset Service Business. The Building Business is involved in the development, leasing, sale, and management of office buildings, commercial facilities, and logistics properties. The Housing Business focuses on the development, sale, leasing, and management of condominiums and other residential properties. The Asset Service Business handles real estate purchases, brokerage, consulting, and parking lot development and operations. It generates the majority of its revenue from the Housing business segment.
84GF Score
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