Avantia CoTSE:8904 +0.49%71 Operating Margin % is 1.04% as of Feb. 2026, which is 73% below its 10-year median of 3.86. GuruFocus rates TSE:8904 with a GF Score™ of 71/100 and a GF Value™ of 円859.49 (Fairly Valued). The stock has 7 warning signs investors should review. Among 91 Homebuilding & Construction companies, Avantia Co ranks worse than 80.22% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Avantia Co's Operating Income for the
six
months ended in Feb. 2026 was 円266 Mil. Avantia Co's Revenue for the
six
months ended in Feb. 2026 was 円25,525 Mil. Therefore, Avantia Co's Operating Margin % for the quarter that ended in Feb. 2026 was 1.04%.
Warning Sign:
Avantia Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -14.3%.
The historical rank and industry rank for Avantia Co's Operating Margin % or its related term are showing as below:
TSE:8904'
s Operating Margin % Range Over the Past 10 Years
Min: 1.33 Med: 3.86 Max: 8.08
Current: 2.65
TSE:8904's Operating Margin % is ranked worse than 80.22% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 7.76
vs TSE:8904: 2.65
Avantia Co's 5-Year Average Operating Margin % Growth Rate was -14.30% per year.
Avantia Co's Operating Income for the
six
months ended in Feb. 2026 was 円266 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円1,796 Mil.
Avantia Co (TSE:8904) 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.
Avantia Co Operating Margin % Related Terms
Avantia Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Avantia 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:8904 vs DHI, PHM, LEN: Operating Margin % Comparison
For the Residential Construction subindustry, Avantia 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.
Avantia Co Operating Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Avantia Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Avantia 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.
Avantia Co's Operating Margin % for the fiscal year that ended in Aug. 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.
Avantia Co (TSE:8904) has a Operating Margin % of 1.04% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Avantia Co and its competitors. This is 73% below median its historical median of 3.86. Over the past decade, Avantia Co's Operating Margin % has ranged from 1.33 to 8.08. According to the industry distribution chart, Avantia Co ranks #73 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 80.2%.
Is Avantia Co's Operating Margin % too high?
Avantia Co's current Operating Margin % of 1.04% is 73% below median its 10-year median of 3.86. Over the past 10 years, this metric has ranged from a low of 1.33 to a high of 8.08. The Homebuilding & Construction industry median Operating Margin % is 7.76. Avantia Co's value of 1.04% is 86.6% below this industry median. Based on the distribution chart, Avantia Co ranks #73 out of 91 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, Avantia Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Avantia Co's Operating Margin % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Avantia Co ranks #73 out of 91 companies for Operating Margin %. This places Avantia Co in the lower half of its industry. The industry median Operating Margin % is 7.76. Avantia Co's value of 1.04% is 86.6% below this benchmark. Historically, Avantia Co's own Operating Margin % has ranged from 1.33 to 8.08 over the past decade. While the company's 10-year median is 3.86 vs. the industry median of 7.76, Avantia 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 Homebuilding & Construction company?
The median Operating Margin % among Homebuilding & Construction companies is 7.76, based on 91 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. Avantia Co's current Operating Margin % of 1.04% is 86.6% 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 Avantia Co and its competitors. For the Homebuilding & Construction industry, the median Operating Margin % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avantia Co's current Operating Margin % is 1.04%, which is 73% below median its own 10-year median of 3.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avantia Co stock overvalued right now?
Based on GuruFocus' analysis, Avantia Co (TSE:8904) is currently considered Fairly Valued. The stock's GF Value™ is 円859.49, compared to a current price of 円818.00 — trading 4.8% below its estimated fair value. The current Operating Margin % is 1.04%, which is 73% below median its 10-year median of 3.86 and 86.6% below the Homebuilding & Construction industry median of 7.76. Avantia Co's overall GF Score™ is 71/100 with 7 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 Avantia Co (TSE:8904), the current Operating Margin % is 1.04% 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 Avantia Co (TSE:8904) Overvalued in 2026?
Based on GuruFocus' analysis, Avantia Co stock appears to be undervalued.
The current stock price of 円818.00 is trading 4.8% below its estimated GF Value™ of 円859.49.
GuruFocus considers Avantia Co to be Fairly Valued.
Key valuation signals for TSE:8904:
Operating Margin %: 1.04% (73% below median its 10-year median of 3.86)
GF Value™: 円859.49 vs. price of 円818.00 (4.8% below fair value)
Industry Position: 86.6% below the Homebuilding & Construction median (#73 of 91)
No single metric tells the full story. See the TSE:8904 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avantia Co Ltd is engaged in the planning, design and construction, interior coordination, and exterior design of houses and condominium projects in Japan.
71GF Score
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