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NIKKON Holdings Co (TSE:9072) Operating Margin % : 9.75% (As of Dec. 2023)


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What is NIKKON Holdings Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. NIKKON Holdings Co's Operating Income for the three months ended in Dec. 2023 was 円5,679 Mil. NIKKON Holdings Co's Revenue for the three months ended in Dec. 2023 was 円58,224 Mil. Therefore, NIKKON Holdings Co's Operating Margin % for the quarter that ended in Dec. 2023 was 9.75%.

Warning Sign:

NIKKON Holdings Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.7%.

The historical rank and industry rank for NIKKON Holdings Co's Operating Margin % or its related term are showing as below:

TSE:9072' s Operating Margin % Range Over the Past 10 Years
Min: 8.94   Med: 10.02   Max: 10.47
Current: 9.6


TSE:9072's Operating Margin % is ranked better than
57.32% of 970 companies
in the Transportation industry
Industry Median: 7.54 vs TSE:9072: 9.60

NIKKON Holdings Co's 5-Year Average Operating Margin % Growth Rate was -1.70% per year.

NIKKON Holdings Co's Operating Income for the three months ended in Dec. 2023 was 円5,679 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円21,103 Mil.


NIKKON Holdings Co Operating Margin % Historical Data

The historical data trend for NIKKON Holdings 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.

* Premium members only.

NIKKON Holdings Co Operating Margin % Chart

NIKKON Holdings Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.13 10.47 9.97 9.85 9.23

NIKKON Holdings Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.14 9.59 9.68 9.38 9.75

Competitive Comparison of NIKKON Holdings Co's Operating Margin %

For the Integrated Freight & Logistics subindustry, NIKKON Holdings 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.


NIKKON Holdings Co's Operating Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, NIKKON Holdings Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where NIKKON Holdings Co's Operating Margin % falls into.



NIKKON Holdings 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.

NIKKON Holdings Co's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=19584 / 212069
=9.23 %

NIKKON Holdings Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=5679 / 58224
=9.75 %

* 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.


NIKKON Holdings Co  (TSE:9072) 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 Nokia’s 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.


NIKKON Holdings Co Operating Margin % Related Terms

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NIKKON Holdings Co (TSE:9072) Business Description

Traded in Other Exchanges
N/A
Address
6-17 Akashi-cho, Chuo-ku, Tokyo, JPN
NIKKON Holdings Co Ltd is a logistics company, domiciled in Japan. The company organizes itself into five segments: shipping, warehousing, packaging, test, and others. The shipping segment, which provides the largest portion of revenue, transports heavy equipment by road, including vehicles, vehicle parts, and machinery. Packaging, the next- largest segment, processes, and packs cargo. The warehousing segment provides storage for cargo. The test segment provides vehicle and machinery testing services. The other segment repairs vehicles leases real estate and sells insurance. The company earns the majority of its revenue in Japan and a small proportion of revenue from North America and Asia.

NIKKON Holdings Co (TSE:9072) Headlines

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