Nippon Techno LabSSE:3849 +1.29%71 Operating Margin % is 32.82% as of Mar. 2026, which is 263% above its 10-year median of 9.03. GuruFocus rates SSE:3849 with a GF Score™ of 71/100 and a GF Value™ of 円851.45 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,820 Software companies, Nippon Techno Lab ranks better than 81.84% on this metric.
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.
Nippon Techno Lab Operating Margin % Related Terms
Nippon Techno Lab Operating Margin % Historical Data
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The historical data trend for Nippon Techno Lab'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.
SSE:3849 vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Nippon Techno Lab'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.
Nippon Techno Lab Operating Margin % vs Software Industry
For the Software industry and Technology sector, Nippon Techno Lab's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Techno Lab'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.
Nippon Techno Lab'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.
Nippon Techno Lab (SSE:3849) has a Operating Margin % of 32.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nippon Techno Lab and its competitors. This is 263% above median its historical median of 9.03. According to the industry distribution chart, Nippon Techno Lab ranks #512 out of 2820 companies in the Software industry, placing it in the top 18.2%.
Is Nippon Techno Lab's Operating Margin % too high?
Nippon Techno Lab's current Operating Margin % of 32.82% is 263% above median its 10-year median of 9.03. The Software industry median Operating Margin % is 3.87. Nippon Techno Lab's value of 32.82% is 749.2% above this industry median. Based on the distribution chart, Nippon Techno Lab ranks #512 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Techno Lab has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Techno Lab's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Nippon Techno Lab ranks #512 out of 2820 companies for Operating Margin %. This places Nippon Techno Lab in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Nippon Techno Lab's value of 32.82% is 749.2% above this benchmark. While the company's 10-year median is 9.03 vs. the industry median of 3.87, Nippon Techno Lab 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 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. Nippon Techno Lab's current Operating Margin % of 32.82% is 749.2% 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 Nippon Techno Lab 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. Nippon Techno Lab's current Operating Margin % is 32.82%, which is 263% above median its own 10-year median of 9.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Techno Lab stock overvalued right now?
Based on GuruFocus' analysis, Nippon Techno Lab (SSE:3849) is currently considered Modestly Undervalued. The stock's GF Value™ is 円851.45, compared to a current price of 円630.00 — trading 26% below its estimated fair value. The current Operating Margin % is 32.82%, which is 263% above median its 10-year median of 9.03 and 749.2% above the Software industry median of 3.87. Nippon Techno Lab's overall GF Score™ is 71/100 with 1 warning sign 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 Nippon Techno Lab (SSE:3849), the current Operating Margin % is 32.82% 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 Techno Lab (SSE:3849) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Techno Lab stock appears to be undervalued.
The current stock price of 円630.00 is trading 26% below its estimated GF Value™ of 円851.45.
GuruFocus considers Nippon Techno Lab to be Modestly Undervalued.
Key valuation signals for SSE:3849:
Operating Margin %: 32.82% (263% above median its 10-year median of 9.03)
GF Value™: 円851.45 vs. price of 円630.00 (26% below fair value)
Industry Position: 749.2% above the Software median (#512 of 2820)
No single metric tells the full story. See the SSE:3849 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Techno Lab Inc is engaged in Imaging & Printer Controller Business that develops and sells controllers and controller software for industrial printers and plotters. The company is engaged in the storage solutions business and contract development business.
71GF Score
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