Encourage Technologies CoTSE:3682 -0.52%69 OCF Margin % is 22.64% as of Mar. 2026, which is 15% below its 10-year median of 26.67. GuruFocus rates TSE:3682 with a GF Score™ of 69/100 and a GF Value™ of 円639.09 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,812 Software companies, Encourage Technologies Co ranks better than 88.55% on this metric.
* 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:3682 vs IBM, ACN, FISV: OCF Margin % Comparison
For the Information Technology Services subindustry, Encourage Technologies Co's OCF Margin %, along with its competitors' market caps and OCF 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.
Encourage Technologies Co OCF Margin % vs Software Industry
For the Software industry and Technology sector, Encourage Technologies Co's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Encourage Technologies Co's OCF 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.
Encourage Technologies Co (TSE:3682) has a OCF Margin % of 22.64% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Encourage Technologies Co and its competitors. This is 15% below median its historical median of 26.67. Over the past decade, Encourage Technologies Co's OCF Margin % has ranged from 0.18 to 36.02. According to the industry distribution chart, Encourage Technologies Co ranks #322 out of 2812 companies in the Software industry, placing it in the top 11.5%.
Is Encourage Technologies Co's OCF Margin % too high?
Encourage Technologies Co's current OCF Margin % of 22.64% is 15% below median its 10-year median of 26.67. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 36.02. The Software industry median OCF Margin % is 6.75. Encourage Technologies Co's value of 22.64% is 235.7% above this industry median. Based on the distribution chart, Encourage Technologies Co ranks #322 out of 2812 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Encourage Technologies Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Encourage Technologies Co's OCF Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Encourage Technologies Co ranks #322 out of 2812 companies for OCF Margin %. This places Encourage Technologies Co in the top 12% of its industry — outperforming the majority of peers. The industry median OCF Margin % is 6.75. Encourage Technologies Co's value of 22.64% is 235.7% above this benchmark. Historically, Encourage Technologies Co's own OCF Margin % has ranged from 0.18 to 36.02 over the past decade. While the company's 10-year median is 26.67 vs. the industry median of 6.75, Encourage Technologies Co 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 OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.75, based on 2,812 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encourage Technologies Co's current OCF Margin % of 22.64% is 235.7% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Encourage Technologies Co and its competitors. For the Software industry, the median OCF Margin % is 6.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encourage Technologies Co's current OCF Margin % is 22.64%, which is 15% below median its own 10-year median of 26.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encourage Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Encourage Technologies Co (TSE:3682) is currently considered Modestly Undervalued. The stock's GF Value™ is 円639.09, compared to a current price of 円577.00 — trading 9.7% below its estimated fair value. The current OCF Margin % is 22.64%, which is 15% below median its 10-year median of 26.67 and 235.7% above the Software industry median of 6.75. Encourage Technologies Co's overall GF Score™ is 69/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Encourage Technologies Co (TSE:3682), the current OCF Margin % is 22.64% 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 Encourage Technologies Co (TSE:3682) Overvalued in 2026?
Based on GuruFocus' analysis, Encourage Technologies Co stock appears to be undervalued.
The current stock price of 円577.00 is trading 9.7% below its estimated GF Value™ of 円639.09.
GuruFocus considers Encourage Technologies Co to be Modestly Undervalued.
Key valuation signals for TSE:3682:
OCF Margin %: 22.64% (15% below median its 10-year median of 26.67)
GF Value™: 円639.09 vs. price of 円577.00 (9.7% below fair value)
Industry Position: 235.7% above the Software median (#322 of 2812)
No single metric tells the full story. See the TSE:3682 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encourage Technologies Co Ltd develops software that monitors and audits user activity in IT systems. The company also provides maintenance support after the installation of the software as well consulting services.
69GF Score
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