Nippon Ichi Software (TSE:3851) Operating Income: 円-409 Mil (TTM As of Mar. 2026)

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TSE:3851 Nippon Ichi Software Inc TSE:3851
52 GF Score
Price 円1,266.00
GF Value 円655.23
Valuation Significantly Overvalued
! 9 Warning Signs
View Full Analysis

What is Nippon Ichi Software Operating Income?

Nippon Ichi Software TSE:3851 +1.28% 52 Operating Income is 円-409 Mil as of Mar. 2026. GuruFocus rates TSE:3851 with a GF Score™ of 52/100 and a GF Value™ of 円655.23 (Significantly Overvalued). The stock has 9 warning signs investors should review.

Nippon Ichi Software's Operating Income for the six months ended in Mar. 2026 was 円-87 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円-409 Mil.

Warning Sign:

Nippon Ichi Software Inc had lost money in 67% of the time over the past 3quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nippon Ichi Software's Operating Income for the six months ended in Mar. 2026 was 円-87 Mil. Nippon Ichi Software's Revenue for the six months ended in Mar. 2026 was 円2,362 Mil. Therefore, Nippon Ichi Software's Operating Margin % for the quarter that ended in Mar. 2026 was -3.68%.

Nippon Ichi Software's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nippon Ichi Software's annualized ROC % for the quarter that ended in Mar. 2026 was -1.47%. Nippon Ichi Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -4.81%.


Nippon Ichi Software  (TSE:3851) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Nippon Ichi Software's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-173.746 * ( 1 - 57.85% )/( (5377.896 + 4614.965)/ 2 )
=-73.233939/4996.4305
=-1.47 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=11203.285 - 435.503 - ( 5736.092 - max(0, 2134.852 - 7524.738+5736.092))
=5377.896

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=11267.005 - 629.742 - ( 6422.885 - max(0, 1905.397 - 7927.695+6422.885))
=4614.965

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Nippon Ichi Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-128.398/( ( (2337.38 + max(538.215, 0)) + (2234.827 + max(229.99, 0)) )/ 2 )
=-128.398/( ( 2875.595 + 2464.817 )/ 2 )
=-128.398/2670.206
=-4.81 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(209.58 + 775.559 + 803.507) - (435.503 + 0 + 814.928)
=538.215

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(234.549 + 540.896 + 729.365) - (629.742 + 0 + 645.078)
=229.99

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Nippon Ichi Software's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=-86.873/2362.4
=-3.68 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, 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 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.


Nippon Ichi Software Operating Income Related Terms


Nippon Ichi Software Operating Income Historical Data

* Premium members only.

The historical data trend for Nippon Ichi Software's Operating Income 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.

Nippon Ichi Software Operating Income Chart

Nippon Ichi Software Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,566.52 745.53 401.34 -274.73 -409.16

Nippon Ichi Software Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Operating Income 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 209.78 -205.96 -68.77 -322.28 -86.87
TSE:3851
52GF Score
Nippon Ichi Software Inc TSE:3851
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Ichi Software Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円-409 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of 円-409 Mil mean?
Nippon Ichi Software (TSE:3851) has a Operating Income of 円-409 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Nippon Ichi Software and its competitors.
Is Nippon Ichi Software's Operating Income too high?
Nippon Ichi Software's current Operating Income is 円-409 Mil. Overall, Nippon Ichi Software has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Ichi Software's Operating Income compare to NTES and EA?
Nippon Ichi Software's Operating Income of 円-409 Mil can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Interactive Media company?
A good Operating Income depends on the Interactive Media industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Nippon Ichi Software and its competitors. Nippon Ichi Software's current Operating Income is 円-409 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Ichi Software stock overvalued right now?
Based on GuruFocus' analysis, Nippon Ichi Software (TSE:3851) is currently considered Significantly Overvalued. The stock's GF Value™ is 円655.23, compared to a current price of 円1,266.00 — trading 93.2% above its estimated fair value. The current Operating Income is 円-409 Mil. Nippon Ichi Software's overall GF Score™ is 52/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Nippon Ichi Software (TSE:3851), the current Operating Income is 円-409 Mil 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 Nippon Ichi Software (TSE:3851) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Ichi Software stock appears to be overvalued. The current stock price of 円1,266.00 is trading 93.2% above its estimated GF Value™ of 円655.23. GuruFocus considers Nippon Ichi Software to be Significantly Overvalued.

Key valuation signals for TSE:3851:

  • Operating Income: 円-409 Mil
  • GF Value™: 円655.23 vs. price of 円1,266.00 (93.2% above fair value)
  • GF Score™: 52/100 with 9 warning signs

No single metric tells the full story. See the TSE:3851 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Ichi Software Business Description

Address 3-17 Tsukiokacho, Sohara, Gifu Prefecture, Kakamigahara, JPN
Nippon Ichi Software Inc is engaged in developing, manufacturing, and selling computer software in Japan and other Asian countries, North America, and Europe. It develops software for consumer game machines, mobile game machines, mobile phones, smartphones, arcades, and produces content of various genres. Its segments include Entertainment Business and Student Dormitories & Other Businesses.
52GF Score

Get the complete analysis for TSE:3851

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,266.00
Price
円655.23
GF Value