Tokai Lease CoTSE:9761 -0.23%76 Operating Margin % is 4.15% as of Mar. 2026, which is 29% above its 10-year median of 3.22. GuruFocus rates TSE:9761 with a GF Score™ of 76/100 and a GF Value™ of 円1,991.53 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,745 Real Estate companies, Tokai Lease Co ranks worse than 63.95% on this metric.
Tokai Lease Co (TSE:9761) 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.
Tokai Lease Co Operating Margin % Related Terms
Tokai Lease Co Operating Margin % Historical Data
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The historical data trend for Tokai Lease 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:9761 vs CBRE, BEKE: Operating Margin % Comparison
For the Real Estate Services subindustry, Tokai Lease 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.
Tokai Lease Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Tokai Lease Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Lease 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.
Tokai Lease 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.
Tokai Lease Co (TSE:9761) has a Operating Margin % of 4.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tokai Lease Co and its competitors. This is 29% above median its historical median of 3.22. Over the past decade, Tokai Lease Co's Operating Margin % has ranged from 1.79 to 8.22. According to the industry distribution chart, Tokai Lease Co ranks #1116 out of 1745 companies in the Real Estate industry, placing it in the top 64%.
Is Tokai Lease Co's Operating Margin % too high?
Tokai Lease Co's current Operating Margin % of 4.15% is 29% above median its 10-year median of 3.22. Over the past 10 years, this metric has ranged from a low of 1.79 to a high of 8.22. The Real Estate industry median Operating Margin % is 13.21. Tokai Lease Co's value of 4.15% is 68.6% below this industry median. Based on the distribution chart, Tokai Lease Co ranks #1116 out of 1745 companies in the Real Estate industry, which is below the industry midpoint. Overall, Tokai Lease Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Lease Co's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Tokai Lease Co ranks #1116 out of 1745 companies for Operating Margin %. This places Tokai Lease Co in the lower half of its industry. The industry median Operating Margin % is 13.21. Tokai Lease Co's value of 4.15% is 68.6% below this benchmark. Historically, Tokai Lease Co's own Operating Margin % has ranged from 1.79 to 8.22 over the past decade. While the company's 10-year median is 3.22 vs. the industry median of 13.21, Tokai Lease 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. Tokai Lease Co's current Operating Margin % of 4.15% is 68.6% 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 Tokai Lease 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. Tokai Lease Co's current Operating Margin % is 4.15%, which is 29% above median its own 10-year median of 3.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Lease Co stock overvalued right now?
Based on GuruFocus' analysis, Tokai Lease Co (TSE:9761) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,991.53, compared to a current price of 円2,212.00 — trading 11.1% above its estimated fair value. The current Operating Margin % is 4.15%, which is 29% above median its 10-year median of 3.22 and 68.6% below the Real Estate industry median of 13.21. Tokai Lease Co's overall GF Score™ is 76/100 with 5 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 Tokai Lease Co (TSE:9761), the current Operating Margin % is 4.15% 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 Tokai Lease Co (TSE:9761) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Lease Co stock appears to be overvalued.
The current stock price of 円2,212.00 is trading 11.1% above its estimated GF Value™ of 円1,991.53.
GuruFocus considers Tokai Lease Co to be Modestly Overvalued.
Key valuation signals for TSE:9761:
Operating Margin %: 4.15% (29% above median its 10-year median of 3.22)
GF Value™: 円1,991.53 vs. price of 円2,212.00 (11.1% above fair value)
Industry Position: 68.6% below the Real Estate median (#1116 of 1745)
No single metric tells the full story. See the TSE:9761 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Lease Co Ltd is a Japanese company engaged in providing real estate services. The business of the company includes leasing, manufacture, and sale of temporary buildings, construction of temporary buildings, and sale of fixtures.
76GF Score
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