EM Systems CoFRA:EMO +0.78%76 Operating Margin % is 5.85% as of Dec. 2025, which is 61% below its 10-year median of 14.90. GuruFocus rates FRA:EMO with a GF Score™ of 76/100 and a GF Value™ of €3.96. The stock has 3 warning signs investors should review. Among 668 Healthcare Providers & Services companies, EM Systems Co ranks better than 72.01% on this metric.
EM Systems Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for EM Systems Co's Operating Margin % or its related term are showing as below:
FRA:EMO'
s Operating Margin % Range Over the Past 10 Years
Min: 10.78 Med: 14.9 Max: 22.01
Current: 10.78
FRA:EMO's Operating Margin % is ranked better than 72.01% of 668
companies
in the Healthcare Providers & Services industry
Industry Median: 4.845
vs FRA:EMO: 10.78
EM Systems Co's 5-Year Average Operating Margin % Growth Rate was 6.90% per year.
EM Systems Co (FRA:EMO) 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.
EM Systems Co Operating Margin % Related Terms
EM Systems Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for EM Systems 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.
FRA:EMO vs VEEV, BTSG, TEM: Operating Margin % Comparison
For the Health Information Services subindustry, EM Systems 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.
EM Systems Co Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, EM Systems Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where EM Systems 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.
EM Systems Co's Operating Margin % for the fiscal year that ended in Dec. 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.
EM Systems Co (FRA:EMO) has a Operating Margin % of 5.85% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on EM Systems Co and its competitors. This is 61% below median its historical median of 14.90. Over the past decade, EM Systems Co's Operating Margin % has ranged from 10.78 to 22.01. According to the industry distribution chart, EM Systems Co ranks #187 out of 668 companies in the Healthcare Providers & Services industry, placing it in the top 28%.
Is EM Systems Co's Operating Margin % too high?
EM Systems Co's current Operating Margin % of 5.85% is 61% below median its 10-year median of 14.90. Over the past 10 years, this metric has ranged from a low of 10.78 to a high of 22.01. The Healthcare Providers & Services industry median Operating Margin % is 4.85. EM Systems Co's value of 5.85% is 20.7% above this industry median. Based on the distribution chart, EM Systems Co ranks #187 out of 668 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, EM Systems Co has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does EM Systems Co's Operating Margin % compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, EM Systems Co ranks #187 out of 668 companies for Operating Margin %. This puts EM Systems Co in the upper half of its industry. The industry median Operating Margin % is 4.85. EM Systems Co's value of 5.85% is 20.7% above this benchmark. Historically, EM Systems Co's own Operating Margin % has ranged from 10.78 to 22.01 over the past decade. While the company's 10-year median is 14.90 vs. the industry median of 4.85, EM Systems 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 Operating Margin % for a Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 4.85, based on 668 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. EM Systems Co's current Operating Margin % of 5.85% is 20.7% 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 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 EM Systems Co and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EM Systems Co's current Operating Margin % is 5.85%, which is 61% below median its own 10-year median of 14.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EM Systems Co stock overvalued right now?
EM Systems Co (FRA:EMO) has a current Operating Margin % of 5.85%. The stock's GF Value™ is €3.96, compared to a current price of €2.58 — trading 34.8% below its estimated fair value. The current Operating Margin % is 5.85%, which is 61% below median its 10-year median of 14.90 and 20.7% above the Healthcare Providers & Services industry median of 4.85. EM Systems Co's overall GF Score™ is 76/100 with 3 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 EM Systems Co (FRA:EMO), the current Operating Margin % is 5.85% as of Dec. 2025. 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 EM Systems Co (FRA:EMO) Overvalued in 2026?
Based on GuruFocus' analysis, EM Systems Co stock appears to be undervalued.
The current stock price of €2.58 is trading 34.8% below its estimated GF Value™ of €3.96.
Key valuation signals for FRA:EMO:
Operating Margin %: 5.85% (61% below median its 10-year median of 14.90)
GF Value™: €3.96 vs. price of €2.58 (34.8% below fair value)
Industry Position: 20.7% above the Healthcare Providers & Services median (#187 of 668)
No single metric tells the full story. See the FRA:EMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EM Systems Co Ltd is a Japan-based company that develops, sells, and maintains systems for the medical (clinics and insurance pharmacies) and nursing/welfare industries. It operates its business in three divisions: Pharmacy System Business develops and sells systems for pharmacies, and provides related supplies and maintenance services; Medical system involved in the development and sales of medical office administration computer systems for medical institutions and clinics; Nursing Care/Welfare Systems Business products are systems for nursing care/welfare service providers and medical and nursing care collaboration solutions; Other businesses operates through its subsidiray that provides promotes cashless payments for clinics and pharmacies and Others services.
76GF Score
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