Japan ExcellentTSE:8987 +1.09%68 Operating Margin % is 44.35% as of Dec. 2025, which is 11% above its 10-year median of 40.00. GuruFocus rates TSE:8987 with a GF Score™ of 68/100 and a GF Value™ of 円128,662.94 (Fairly Valued). The stock has 6 warning signs investors should review. Among 750 REITs companies, Japan Excellent ranks worse than 62% on this metric.
Japan Excellent (TSE:8987) 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.
Japan Excellent Operating Margin % Related Terms
Japan Excellent Operating Margin % Historical Data
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The historical data trend for Japan Excellent'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:8987 vs BXP, ARE, VNO: Operating Margin % Comparison
For the REIT - Office subindustry, Japan Excellent'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.
Japan Excellent Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Excellent's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Excellent'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.
Japan Excellent'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.
Japan Excellent (TSE:8987) has a Operating Margin % of 44.35% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Excellent and its competitors. This is 11% above median its historical median of 40.00. Over the past decade, Japan Excellent's Operating Margin % has ranged from 37.05 to 47.20. According to the industry distribution chart, Japan Excellent ranks #465 out of 750 companies in the REITs industry, placing it in the top 62%.
Is Japan Excellent's Operating Margin % too high?
Japan Excellent's current Operating Margin % of 44.35% is 11% above median its 10-year median of 40.00. Over the past 10 years, this metric has ranged from a low of 37.05 to a high of 47.20. The REITs industry median Operating Margin % is 52.67. Japan Excellent's value of 44.35% is 15.8% below this industry median. Based on the distribution chart, Japan Excellent ranks #465 out of 750 companies in the REITs industry, which is below the industry midpoint. Overall, Japan Excellent has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Excellent's Operating Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Japan Excellent ranks #465 out of 750 companies for Operating Margin %. This places Japan Excellent in the lower half of its industry. The industry median Operating Margin % is 52.67. Japan Excellent's value of 44.35% is 15.8% below this benchmark. Historically, Japan Excellent's own Operating Margin % has ranged from 37.05 to 47.20 over the past decade. While the company's 10-year median is 40.00 vs. the industry median of 52.67, Japan Excellent 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 REITs company?
The median Operating Margin % among REITs companies is 52.67, based on 750 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. Japan Excellent's current Operating Margin % of 44.35% is 15.8% 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 Japan Excellent and its competitors. For the REITs industry, the median Operating Margin % is 52.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Excellent's current Operating Margin % is 44.35%, which is 11% above median its own 10-year median of 40.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Excellent stock overvalued right now?
Based on GuruFocus' analysis, Japan Excellent (TSE:8987) is currently considered Fairly Valued. The stock's GF Value™ is 円128,662.94, compared to a current price of 円138,500.00 — trading 7.6% above its estimated fair value. The current Operating Margin % is 44.35%, which is 11% above median its 10-year median of 40.00 and 15.8% below the REITs industry median of 52.67. Japan Excellent's overall GF Score™ is 68/100 with 6 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 Japan Excellent (TSE:8987), the current Operating Margin % is 44.35% 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 Japan Excellent (TSE:8987) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Excellent stock appears to be overvalued.
The current stock price of 円138,500.00 is trading 7.6% above its estimated GF Value™ of 円128,662.94.
GuruFocus considers Japan Excellent to be Fairly Valued.
Key valuation signals for TSE:8987:
Operating Margin %: 44.35% (11% above median its 10-year median of 40.00)
GF Value™: 円128,662.94 vs. price of 円138,500.00 (7.6% above fair value)
Industry Position: 15.8% below the REITs median (#465 of 750)
No single metric tells the full story. See the TSE:8987 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Excellent Inc is a real estate investment trust. It mainly invests in office buildings located in major metropolitan areas and pursues to create a portfolio that produces stable growth of income by acquiring properties. The company's portfolio of assets is managed by Japan Excellent Asset Management Co., Ltd.
68GF Score
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