Media Five CoFSE:3824 58 Operating Margin % is 2.92% as of Nov. 2025, which is 112% above its 10-year median of 1.38. GuruFocus rates FSE:3824 with a GF Score™ of 58/100 and a GF Value™ of 円566.26 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,818 Software companies, Media Five Co ranks better than 52.31% on this metric.
Media Five Co (FSE:3824) 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.
Media Five Co Operating Margin % Related Terms
Media Five Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Media Five 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.
FSE:3824 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Media Five 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.
Media Five Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Media Five Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Media Five 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.
Media Five Co's Operating Margin % for the fiscal year that ended in May. 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.
Media Five Co (FSE:3824) has a Operating Margin % of 2.92% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Media Five Co and its competitors. This is 112% above median its historical median of 1.38. According to the industry distribution chart, Media Five Co ranks #1344 out of 2818 companies in the Software industry, placing it in the top 47.7%.
Is Media Five Co's Operating Margin % too high?
Media Five Co's current Operating Margin % of 2.92% is 112% above median its 10-year median of 1.38. The Software industry median Operating Margin % is 3.87. Media Five Co's value of 2.92% is 24.5% below this industry median. Based on the distribution chart, Media Five Co ranks #1344 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Media Five Co has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Media Five Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Media Five Co ranks #1344 out of 2818 companies for Operating Margin %. This puts Media Five Co in the upper half of its industry. The industry median Operating Margin % is 3.87. Media Five Co's value of 2.92% is 24.5% below this benchmark. While the company's 10-year median is 1.38 vs. the industry median of 3.87, Media Five Co has consistently been below 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 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. Media Five Co's current Operating Margin % of 2.92% is 24.5% below 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 Media Five Co and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Media Five Co's current Operating Margin % is 2.92%, which is 112% above median its own 10-year median of 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Media Five Co stock overvalued right now?
Based on GuruFocus' analysis, Media Five Co (FSE:3824) is currently considered Modestly Overvalued. The stock's GF Value™ is 円566.26, compared to a current price of 円695.00 — trading 22.7% above its estimated fair value. The current Operating Margin % is 2.92%, which is 112% above median its 10-year median of 1.38 and 24.5% below the Software industry median of 3.87. Media Five Co's overall GF Score™ is 58/100 with 2 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 Media Five Co (FSE:3824), the current Operating Margin % is 2.92% as of Nov. 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 Media Five Co (FSE:3824) Overvalued in 2026?
Based on GuruFocus' analysis, Media Five Co stock appears to be overvalued.
The current stock price of 円695.00 is trading 22.7% above its estimated GF Value™ of 円566.26.
GuruFocus considers Media Five Co to be Modestly Overvalued.
Key valuation signals for FSE:3824:
Operating Margin %: 2.92% (112% above median its 10-year median of 1.38)
GF Value™: 円566.26 vs. price of 円695.00 (22.7% above fair value)
Industry Position: 24.5% below the Software median (#1344 of 2818)
No single metric tells the full story. See the FSE:3824 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Media Five Co is a Japanese firm engaged in the provision of software development-related information technology (IT) engineers to computer companies. It develops customized system integration software, including a sales management system for cram schools. It also has a restaurant and childcare services business.
58GF Score
Get the complete analysis for FSE:3824
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FSE:3824 has been successfully added to your 
