NTTNPPXF -5.87%78 Operating Margin % is 6.55% as of Mar. 2026, which is 54% below its 10-year median of 14.19. GuruFocus rates NPPXF with a GF Score™ of 78/100 and a GF Value™ of $1.05 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 367 Telecommunication Services companies, NTT ranks better than 57.77% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. NTT's Operating Income for the
three
months ended in Mar. 2026 was $1,645 Mil. NTT's Revenue for the
three
months ended in Mar. 2026 was $25,132 Mil. Therefore, NTT's Operating Margin % for the quarter that ended in Mar. 2026 was 6.55%.
Warning Sign:
NTT Inc operating margin has been in a 5-year decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for NTT's Operating Margin % or its related term are showing as below:
NPPXF'
s Operating Margin % Range Over the Past 10 Years
Min: 12.18 Med: 14.19 Max: 15.44
Current: 12.4
NPPXF's Operating Margin % is ranked better than 57.77% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs NPPXF: 12.40
NTT's 5-Year Average Operating Margin % Growth Rate was -3.50% per year.
NTT's Operating Income for the
three
months ended in Mar. 2026 was $1,645 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $11,824 Mil.
NTT (OTCPK:NPPXF) 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.
NTT Operating Margin % Related Terms
NTT Operating Margin % Historical Data
* Premium members only.
The historical data trend for NTT'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.
NPPXF vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, NTT'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.
NTT Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NTT'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.
NTT's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
NTT (NPPXF) has a Operating Margin % of 6.55% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NTT and its competitors. This is 54% below median its historical median of 14.19. Over the past decade, NTT's Operating Margin % has ranged from 12.18 to 15.44. According to the industry distribution chart, NTT ranks #155 out of 367 companies in the Telecommunication Services industry, placing it in the top 42.2%.
Is NTT's Operating Margin % too high?
NTT's current Operating Margin % of 6.55% is 54% below median its 10-year median of 14.19. Over the past 10 years, this metric has ranged from a low of 12.18 to a high of 15.44. The Telecommunication Services industry median Operating Margin % is 9.73. NTT's value of 6.55% is 32.7% below this industry median. Based on the distribution chart, NTT ranks #155 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, NTT has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NTT's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, NTT ranks #155 out of 367 companies for Operating Margin %. This puts NTT in the upper half of its industry. The industry median Operating Margin % is 9.73. NTT's value of 6.55% is 32.7% below this benchmark. Historically, NTT's own Operating Margin % has ranged from 12.18 to 15.44 over the past decade. While the company's 10-year median is 14.19 vs. the industry median of 9.73, NTT 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 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. NTT's current Operating Margin % of 6.55% is 32.7% 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 NTT and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT's current Operating Margin % is 6.55%, which is 54% below median its own 10-year median of 14.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT stock overvalued right now?
Based on GuruFocus' analysis, NTT (NPPXF) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.05, compared to a current price of $0.85 — trading 19.2% below its estimated fair value. The current Operating Margin % is 6.55%, which is 54% below median its 10-year median of 14.19 and 32.7% below the Telecommunication Services industry median of 9.73. NTT's overall GF Score™ is 78/100 with 5 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 NTT (NPPXF), the current Operating Margin % is 6.55% 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 NTT (NPPXF) Overvalued in 2026?
Based on GuruFocus' analysis, NTT stock appears to be undervalued.
The current stock price of $0.85 is trading 19.2% below its estimated GF Value™ of $1.05.
GuruFocus considers NTT to be Modestly Undervalued.
Key valuation signals for NPPXF:
Operating Margin %: 6.55% (54% below median its 10-year median of 14.19)
GF Value™: $1.05 vs. price of $0.85 (19.2% below fair value)
Industry Position: 32.7% below the Telecommunication Services median (#155 of 367)
No single metric tells the full story. See the NPPXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NTT owns NTT DoCoMo, the largest wireless operator in Japan, with 53 million mobile handset subscribers. It also owns NTT East and NTT West, the two regional incumbent fixed-line operators in Japan, with about 23.6 million broadband lines (around 72% of which are wholesaled). The firm also provides IT and communications systems integration via NTT Communications and NTT Data.
78GF Score
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