Kitakei CoTSE:9872 +0.98%73 Operating Margin % is 1.31% as of May. 2026, which is 5% below its 10-year median of 1.38. GuruFocus rates TSE:9872 with a GF Score™ of 73/100 and a GF Value™ of 円832.49 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,764 Construction companies, Kitakei Co ranks worse than 74.15% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Kitakei Co's Operating Income for the
six
months ended in May. 2026 was 円391 Mil. Kitakei Co's Revenue for the
six
months ended in May. 2026 was 円29,741 Mil. Therefore, Kitakei Co's Operating Margin % for the quarter that ended in May. 2026 was 1.31%.
Good Sign:
Kitakei Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Kitakei Co's Operating Margin % or its related term are showing as below:
TSE:9872'
s Operating Margin % Range Over the Past 10 Years
Min: 1.13 Med: 1.38 Max: 1.56
Current: 1.15
TSE:9872's Operating Margin % is ranked worse than 74.15% of 1764
companies
in the Construction industry
Industry Median: 5.89
vs TSE:9872: 1.15
Kitakei Co's 5-Year Average Operating Margin % Growth Rate was 1.90% per year.
Kitakei Co's Operating Income for the
six
months ended in May. 2026 was 円391 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was 円671 Mil.
Kitakei Co (TSE:9872) 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.
Kitakei Co Operating Margin % Related Terms
Kitakei Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Kitakei 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:9872 vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Kitakei 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.
Kitakei Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Kitakei Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kitakei 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.
Kitakei Co's Operating Margin % for the fiscal year that ended in Nov. 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.
Kitakei Co (TSE:9872) has a Operating Margin % of 1.31% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kitakei Co and its competitors. This is near median its historical median of 1.38. Over the past decade, Kitakei Co's Operating Margin % has ranged from 1.13 to 1.56. According to the industry distribution chart, Kitakei Co ranks #1308 out of 1764 companies in the Construction industry, placing it in the top 74.1%.
Is Kitakei Co's Operating Margin % too high?
Kitakei Co's current Operating Margin % of 1.31% is near median its 10-year median of 1.38. Over the past 10 years, this metric has ranged from a low of 1.13 to a high of 1.56. The Construction industry median Operating Margin % is 5.89. Kitakei Co's value of 1.31% is 77.8% below this industry median. Based on the distribution chart, Kitakei Co ranks #1308 out of 1764 companies in the Construction industry, which is below the industry midpoint. Overall, Kitakei Co has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kitakei Co's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Kitakei Co ranks #1308 out of 1764 companies for Operating Margin %. This places Kitakei Co in the lower half of its industry. The industry median Operating Margin % is 5.89. Kitakei Co's value of 1.31% is 77.8% below this benchmark. Historically, Kitakei Co's own Operating Margin % has ranged from 1.13 to 1.56 over the past decade. While the company's 10-year median is 1.38 vs. the industry median of 5.89, Kitakei 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,764 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. Kitakei Co's current Operating Margin % of 1.31% is 77.8% 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 Kitakei Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kitakei Co's current Operating Margin % is 1.31%, which is near median its own 10-year median of 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kitakei Co stock overvalued right now?
Based on GuruFocus' analysis, Kitakei Co (TSE:9872) is currently considered Modestly Overvalued. The stock's GF Value™ is 円832.49, compared to a current price of 円924.00 — trading 11% above its estimated fair value. The current Operating Margin % is 1.31%, which is near median its 10-year median of 1.38 and 77.8% below the Construction industry median of 5.89. Kitakei Co's overall GF Score™ is 73/100 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 Kitakei Co (TSE:9872), the current Operating Margin % is 1.31% as of May. 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 Kitakei Co (TSE:9872) Overvalued in 2026?
Based on GuruFocus' analysis, Kitakei Co stock appears to be overvalued.
The current stock price of 円924.00 is trading 11% above its estimated GF Value™ of 円832.49.
GuruFocus considers Kitakei Co to be Modestly Overvalued.
Key valuation signals for TSE:9872:
Operating Margin %: 1.31% (near median its 10-year median of 1.38)
GF Value™: 円832.49 vs. price of 円924.00 (11% above fair value)
Industry Position: 77.8% below the Construction median (#1308 of 1764)
No single metric tells the full story. See the TSE:9872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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