Taiheiyo KouhatsuTSE:8835 +0.27%64 Operating Margin % is 1.01% as of Mar. 2026, which is 62% below its 10-year median of 2.64. GuruFocus rates TSE:8835 with a GF Score™ of 64/100 and a GF Value™ of 円751.71 (Fairly Valued). The stock has 8 warning signs investors should review. Among 545 Conglomerates companies, Taiheiyo Kouhatsu ranks worse than 71.38% on this metric.
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.
Taiheiyo Kouhatsu Operating Margin % Related Terms
Taiheiyo Kouhatsu Operating Margin % Historical Data
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The historical data trend for Taiheiyo Kouhatsu'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:8835 vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Taiheiyo Kouhatsu'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.
Taiheiyo Kouhatsu Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Taiheiyo Kouhatsu's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taiheiyo Kouhatsu'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.
Taiheiyo Kouhatsu'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.
Taiheiyo Kouhatsu (TSE:8835) has a Operating Margin % of 1.01% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Taiheiyo Kouhatsu and its competitors. This is 62% below median its historical median of 2.64. Over the past decade, Taiheiyo Kouhatsu's Operating Margin % has ranged from 1.93 to 2.97. According to the industry distribution chart, Taiheiyo Kouhatsu ranks #389 out of 545 companies in the Conglomerates industry, placing it in the top 71.4%.
Is Taiheiyo Kouhatsu's Operating Margin % too high?
Taiheiyo Kouhatsu's current Operating Margin % of 1.01% is 62% below median its 10-year median of 2.64. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 2.97. The Conglomerates industry median Operating Margin % is 5.93. Taiheiyo Kouhatsu's value of 1.01% is 83% below this industry median. Based on the distribution chart, Taiheiyo Kouhatsu ranks #389 out of 545 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Taiheiyo Kouhatsu has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Taiheiyo Kouhatsu's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Taiheiyo Kouhatsu ranks #389 out of 545 companies for Operating Margin %. This places Taiheiyo Kouhatsu in the lower half of its industry. The industry median Operating Margin % is 5.93. Taiheiyo Kouhatsu's value of 1.01% is 83% below this benchmark. Historically, Taiheiyo Kouhatsu's own Operating Margin % has ranged from 1.93 to 2.97 over the past decade. While the company's 10-year median is 2.64 vs. the industry median of 5.93, Taiheiyo Kouhatsu 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 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. Taiheiyo Kouhatsu's current Operating Margin % of 1.01% is 83% 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 Taiheiyo Kouhatsu and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiheiyo Kouhatsu's current Operating Margin % is 1.01%, which is 62% below median its own 10-year median of 2.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiheiyo Kouhatsu stock overvalued right now?
Based on GuruFocus' analysis, Taiheiyo Kouhatsu (TSE:8835) is currently considered Fairly Valued. The stock's GF Value™ is 円751.71, compared to a current price of 円751.00 — trading 0.1% below its estimated fair value. The current Operating Margin % is 1.01%, which is 62% below median its 10-year median of 2.64 and 83% below the Conglomerates industry median of 5.93. Taiheiyo Kouhatsu's overall GF Score™ is 64/100 with 8 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 Taiheiyo Kouhatsu (TSE:8835), the current Operating Margin % is 1.01% 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 Taiheiyo Kouhatsu (TSE:8835) Overvalued in 2026?
Based on GuruFocus' analysis, Taiheiyo Kouhatsu stock appears to be undervalued.
The current stock price of 円751.00 is trading 0.1% below its estimated GF Value™ of 円751.71.
GuruFocus considers Taiheiyo Kouhatsu to be Fairly Valued.
Key valuation signals for TSE:8835:
Operating Margin %: 1.01% (62% below median its 10-year median of 2.64)
GF Value™: 円751.71 vs. price of 円751.00 (0.1% below fair value)
Industry Position: 83% below the Conglomerates median (#389 of 545)
No single metric tells the full story. See the TSE:8835 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiheiyo Kouhatsu Inc operates in the real estate and energy businesses in Japan. Taiheiyo Kouhatsu as a real estate developer takes comprehensive care of planning, site selection, design and surveillance, and sales of condominiums, residential land and detached houses. The energy business is involved in the sell of fuel oil and lubricating oil mainly for general industry and ships. It also sells gasoline, light oil and kerosene to franchised stores handling oil. In addition, it is engaged in the provision of nursing home services for seniors.
64GF Score
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