Makoto Construction CoTSE:8995 -0.23%54 Operating Margin % is 4.80% as of Mar. 2026, which is 14% below its 10-year median of 5.58. GuruFocus rates TSE:8995 with a GF Score™ of 54/100 and a GF Value™ of 円755.39 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,745 Real Estate companies, Makoto Construction Co ranks worse than 72.66% on this metric.
Makoto Construction Co (TSE:8995) 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.
Makoto Construction Co Operating Margin % Related Terms
Makoto Construction Co Operating Margin % Historical Data
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The historical data trend for Makoto Construction 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.
Makoto Construction Co Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, Makoto Construction 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.
Makoto Construction Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Makoto Construction Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Makoto Construction Co's Operating Margin % falls into.
Makoto Construction 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.
Makoto Construction Co'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.
Makoto Construction Co (TSE:8995) has a Operating Margin % of 4.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Makoto Construction Co and its competitors. This is 14% below median its historical median of 5.58. Over the past decade, Makoto Construction Co's Operating Margin % has ranged from 0.62 to 9.14. According to the industry distribution chart, Makoto Construction Co ranks #1268 out of 1745 companies in the Real Estate industry, placing it in the top 72.7%.
Is Makoto Construction Co's Operating Margin % too high?
Makoto Construction Co's current Operating Margin % of 4.80% is 14% below median its 10-year median of 5.58. Over the past 10 years, this metric has ranged from a low of 0.62 to a high of 9.14. The Real Estate industry median Operating Margin % is 13.21. Makoto Construction Co's value of 4.80% is 63.7% below this industry median. Based on the distribution chart, Makoto Construction Co ranks #1268 out of 1745 companies in the Real Estate industry, which is below the industry midpoint. Overall, Makoto Construction Co has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Makoto Construction Co's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Makoto Construction Co ranks #1268 out of 1745 companies for Operating Margin %. This places Makoto Construction Co in the lower half of its industry. The industry median Operating Margin % is 13.21. Makoto Construction Co's value of 4.80% is 63.7% below this benchmark. Historically, Makoto Construction Co's own Operating Margin % has ranged from 0.62 to 9.14 over the past decade. While the company's 10-year median is 5.58 vs. the industry median of 13.21, Makoto Construction 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 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. Makoto Construction Co's current Operating Margin % of 4.80% is 63.7% 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 Makoto Construction 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. Makoto Construction Co's current Operating Margin % is 4.80%, which is 14% below median its own 10-year median of 5.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Makoto Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Makoto Construction Co (TSE:8995) is currently considered Modestly Overvalued. The stock's GF Value™ is 円755.39, compared to a current price of 円865.00 — trading 14.5% above its estimated fair value. The current Operating Margin % is 4.80%, which is 14% below median its 10-year median of 5.58 and 63.7% below the Real Estate industry median of 13.21. Makoto Construction Co's overall GF Score™ is 54/100 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 Makoto Construction Co (TSE:8995), the current Operating Margin % is 4.80% 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 Makoto Construction Co (TSE:8995) Overvalued in 2026?
Based on GuruFocus' analysis, Makoto Construction Co stock appears to be overvalued.
The current stock price of 円865.00 is trading 14.5% above its estimated GF Value™ of 円755.39.
GuruFocus considers Makoto Construction Co to be Modestly Overvalued.
Key valuation signals for TSE:8995:
Operating Margin %: 4.80% (14% below median its 10-year median of 5.58)
GF Value™: 円755.39 vs. price of 円865.00 (14.5% above fair value)
Industry Position: 63.7% below the Real Estate median (#1268 of 1745)
No single metric tells the full story. See the TSE:8995 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Makoto Construction Co Ltd is engaged in the in-house design & construction business in Japan. It builds homes and condominiums for residential purposes, as well as provides real estate agency services.
54GF Score
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