OB SystemTSE:5576 -0.04%81 FCF Margin % is 6.82% as of Mar. 2026, which is 61% above its 10-year median of 4.24. GuruFocus rates TSE:5576 with a GF Score™ of 81/100 and a GF Value™ of 円2,961.16 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,810 Software companies, OB System ranks better than 53.27% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. OB System's Free Cash Flow for the
six
months ended in Mar. 2026 was 円324 Mil. OB System's Revenue for the
six
months ended in Mar. 2026 was 円4,756 Mil. Therefore, OB System's FCF Margin % for the quarter that ended in Mar. 2026 was 6.82%.
The historical rank and industry rank for OB System's FCF Margin % or its related term are showing as below:
TSE:5576'
s FCF Margin % Range Over the Past 10 Years
Min: 0.36 Med: 4.24 Max: 5.62
Current: 3.63
During the past 6 years, the highest FCF Margin % of OB System was 5.62%. The lowest was 0.36%. And the median was 4.24%.
TSE:5576's FCF Margin % is ranked better than 53.27% of 2810
companies
in the Software industry
Industry Median: 2.415
vs TSE:5576: 3.63
OB System FCF Margin % Related Terms
OB System FCF Margin % Historical Data
* Premium members only.
The historical data trend for OB System's FCF 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:5576 vs IBM, ACN, FISV: FCF Margin % Comparison
For the Information Technology Services subindustry, OB System's FCF Margin %, along with its competitors' market caps and FCF 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.
OB System FCF Margin % vs Software Industry
For the Software industry and Technology sector, OB System's FCF Margin % distribution charts can be found below:
* The bar in red indicates where OB System's FCF Margin % falls into.
* 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.
OB System (TSE:5576) has a FCF Margin % of 6.82% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on OB System and its competitors. This is 61% above median its historical median of 4.24. Over the past decade, OB System's FCF Margin % has ranged from 0.36 to 5.62. According to the industry distribution chart, OB System ranks #1313 out of 2810 companies in the Software industry, placing it in the top 46.7%.
Is OB System's FCF Margin % too high?
OB System's current FCF Margin % of 6.82% is 61% above median its 10-year median of 4.24. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 5.62. The Software industry median FCF Margin % is 2.42. OB System's value of 6.82% is 182.4% above this industry median. Based on the distribution chart, OB System ranks #1313 out of 2810 companies in the Software industry, which is above the industry midpoint. Overall, OB System has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does OB System's FCF Margin % compare to IBM and ACN?
According to the Software industry distribution chart, OB System ranks #1313 out of 2810 companies for FCF Margin %. This puts OB System in the upper half of its industry. The industry median FCF Margin % is 2.42. OB System's value of 6.82% is 182.4% above this benchmark. Historically, OB System's own FCF Margin % has ranged from 0.36 to 5.62 over the past decade. While the company's 10-year median is 4.24 vs. the industry median of 2.42, OB System has consistently been above 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 FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.42, based on 2,810 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. OB System's current FCF Margin % of 6.82% is 182.4% above 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on OB System and its competitors. For the Software industry, the median FCF Margin % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OB System's current FCF Margin % is 6.82%, which is 61% above median its own 10-year median of 4.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OB System stock overvalued right now?
Based on GuruFocus' analysis, OB System (TSE:5576) is currently considered Fairly Valued. The stock's GF Value™ is 円2,961.16, compared to a current price of 円2,852.00 — trading 3.7% below its estimated fair value. The current FCF Margin % is 6.82%, which is 61% above median its 10-year median of 4.24 and 182.4% above the Software industry median of 2.42. OB System's overall GF Score™ is 81/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For OB System (TSE:5576), the current FCF Margin % is 6.82% 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 OB System (TSE:5576) Overvalued in 2026?
Based on GuruFocus' analysis, OB System stock appears to be undervalued.
The current stock price of 円2,852.00 is trading 3.7% below its estimated GF Value™ of 円2,961.16.
GuruFocus considers OB System to be Fairly Valued.
Key valuation signals for TSE:5576:
FCF Margin %: 6.82% (61% above median its 10-year median of 4.24)
GF Value™: 円2,961.16 vs. price of 円2,852.00 (3.7% below fair value)
Industry Position: 182.4% above the Software median (#1313 of 2810)
No single metric tells the full story. See the TSE:5576 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
OB System Inc is engaged in the System integration services business. The System integration service includes: system consultation; Development of application softwares for general-purpose computers, workstations, personal computers, and microcomputers; Construction of a network system centered on an open system; Development of an Internet/Web system.
81GF Score
Get the complete analysis for TSE:5576
FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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