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Johnan Academic Preparatory Institute Inc has recorded a loss in operating income at least once over the past 3 years.
Johnan Academic Preparatory Institute (SSE:4720) 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.
Johnan Academic Preparatory Institute Operating Margin % Related Terms
Johnan Academic Preparatory Institute Operating Margin % Historical Data
* 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.
Johnan Academic Preparatory Institute Operating Margin % Chart
For the Education & Training Services subindustry, Johnan Academic Preparatory Institute'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.
Johnan Academic Preparatory Institute Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Johnan Academic Preparatory Institute's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Johnan Academic Preparatory Institute's Operating Margin % falls into.
Johnan Academic Preparatory Institute Operating Margin % Calculation
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.
* 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.
Johnan Academic Preparatory Institute (SSE:4720) has a Operating Margin % of -1.22% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Johnan Academic Preparatory Institute and its competitors. According to the industry distribution chart, Johnan Academic Preparatory Institute ranks #187 out of 255 companies in the Education industry, placing it in the top 73.3%.
Is Johnan Academic Preparatory Institute's Operating Margin % too high?
Johnan Academic Preparatory Institute's current Operating Margin % is -1.22%. Based on the distribution chart, Johnan Academic Preparatory Institute ranks #187 out of 255 companies in the Education industry, which is below the industry midpoint. Overall, Johnan Academic Preparatory Institute has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Johnan Academic Preparatory Institute's Operating Margin % compare to ?
According to the Education industry distribution chart, Johnan Academic Preparatory Institute ranks #187 out of 255 companies for Operating Margin %. This places Johnan Academic Preparatory Institute in the lower half of its industry. The industry median Operating Margin % is 9.74. 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 an Education company?
The median Operating Margin % among Education companies is 9.74, based on 255 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. 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 Johnan Academic Preparatory Institute and its competitors. For the Education industry, the median Operating Margin % is 9.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnan Academic Preparatory Institute's current Operating Margin % is -1.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnan Academic Preparatory Institute stock overvalued right now?
Johnan Academic Preparatory Institute (SSE:4720) has a current Operating Margin % of -1.22%. The stock's GF Value™ is 円282.22, compared to a current price of 円241.00 — trading 14.6% below its estimated fair value. The current Operating Margin % is -1.22%. Johnan Academic Preparatory Institute's overall GF Score™ is 44/100 with 7 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 Johnan Academic Preparatory Institute (SSE:4720), the current Operating Margin % is -1.22% 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 Johnan Academic Preparatory Institute (SSE:4720) Overvalued in 2026?
Based on GuruFocus' analysis, Johnan Academic Preparatory Institute stock appears to be undervalued.
The current stock price of 円241.00 is trading 14.6% below its estimated GF Value™ of 円282.22.
Key valuation signals for SSE:4720:
Operating Margin %: -1.22%
GF Value™: 円282.22 vs. price of 円241.00 (14.6% below fair value)
No single metric tells the full story. See the SSE:4720 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnan Academic Preparatory Institute Business Description
Johnan Academic Preparatory Institute Inc is a Japan-based company that engages in the education business. It provides learning materials support and electronic learning services for elementary and junior high school students.
44GF Score
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