Cross Cat Co (TSE:2307) Operating Margin %: 12.46% (As of Mar. 2026) — 50% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:2307 Cross Cat Co Ltd TSE:2307
77 GF Score
Price 円1,000.00
GF Value 円1,357.55
Valuation Modestly Undervalued
View Full Analysis

What is Cross Cat Co Operating Margin %?

Cross Cat Co TSE:2307 -0.99% 77 Operating Margin % is 12.46% as of Mar. 2026, which is 50% above its 10-year median of 8.31. GuruFocus rates TSE:2307 with a GF Score™ of 77/100 and a GF Value™ of 円1,357.55 (Modestly Undervalued). Among 2,826 Software companies, Cross Cat Co ranks better than 73.32% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Cross Cat Co's Operating Income for the six months ended in Mar. 2026 was 円1,133 Mil. Cross Cat Co's Revenue for the six months ended in Mar. 2026 was 円9,091 Mil. Therefore, Cross Cat Co's Operating Margin % for the quarter that ended in Mar. 2026 was 12.46%.

Good Sign:

Cross Cat Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Cross Cat Co's Operating Margin % or its related term are showing as below:

TSE:2307' s Operating Margin % Range Over the Past 10 Years
Min: 5.13   Med: 8.31   Max: 11.63
Current: 11.63


TSE:2307's Operating Margin % is ranked better than
73.32% of 2826 companies
in the Software industry
Industry Median: 3.9 vs TSE:2307: 11.63

Cross Cat Co's 5-Year Average Operating Margin % Growth Rate was 14.40% per year.

Cross Cat Co's Operating Income for the six months ended in Mar. 2026 was 円1,133 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円2,014 Mil.


Cross Cat Co  (TSE:2307) 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 Nokia’s 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.


Cross Cat Co Operating Margin % Related Terms


Cross Cat Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Cross Cat 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.

Cross Cat Co Operating Margin % Chart

Cross Cat Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.16 10.56 10.19 11.34 11.63

Cross Cat Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.96 10.76 11.91 10.71 12.46

TSE:2307 vs QH, SHOP, UBER: Operating Margin % Comparison

For the Software - Application subindustry, Cross Cat 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.


Cross Cat Co Operating Margin % vs Software Industry

For the Software industry and Technology sector, Cross Cat Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Cross Cat Co's Operating Margin % falls into.


TSE:2307
77GF Score
Cross Cat Co Ltd TSE:2307
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cross Cat Co 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.

Cross Cat Co's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=2014.03 / 17314.8
=11.63 %

Cross Cat Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=1133.03 / 9091.002
=12.46 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 12.46% mean?
Cross Cat Co (TSE:2307) has a Operating Margin % of 12.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cross Cat Co and its competitors. This is 50% above median its historical median of 8.31. Over the past decade, Cross Cat Co's Operating Margin % has ranged from 5.13 to 11.63. According to the industry distribution chart, Cross Cat Co ranks #754 out of 2826 companies in the Software industry, placing it in the top 26.7%.
Is Cross Cat Co's Operating Margin % too high?
Cross Cat Co's current Operating Margin % of 12.46% is 50% above median its 10-year median of 8.31. Over the past 10 years, this metric has ranged from a low of 5.13 to a high of 11.63. The Software industry median Operating Margin % is 3.90. Cross Cat Co's value of 12.46% is 219.5% above this industry median. Based on the distribution chart, Cross Cat Co ranks #754 out of 2826 companies in the Software industry, which is above the industry midpoint. Overall, Cross Cat Co has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cross Cat Co's Operating Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Cross Cat Co ranks #754 out of 2826 companies for Operating Margin %. This puts Cross Cat Co in the upper half of its industry. The industry median Operating Margin % is 3.90. Cross Cat Co's value of 12.46% is 219.5% above this benchmark. Historically, Cross Cat Co's own Operating Margin % has ranged from 5.13 to 11.63 over the past decade. While the company's 10-year median is 8.31 vs. the industry median of 3.90, Cross Cat 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 Software company?
The median Operating Margin % among Software companies is 3.90, based on 2,826 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. Cross Cat Co's current Operating Margin % of 12.46% is 219.5% 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 Cross Cat Co and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cross Cat Co's current Operating Margin % is 12.46%, which is 50% above median its own 10-year median of 8.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cross Cat Co stock overvalued right now?
Based on GuruFocus' analysis, Cross Cat Co (TSE:2307) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,357.55, compared to a current price of 円1,000.00 — trading 26.3% below its estimated fair value. The current Operating Margin % is 12.46%, which is 50% above median its 10-year median of 8.31 and 219.5% above the Software industry median of 3.90. Cross Cat Co's overall GF Score™ is 77/100. 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 Cross Cat Co (TSE:2307), the current Operating Margin % is 12.46% 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 Cross Cat Co (TSE:2307) Overvalued in 2026?

Based on GuruFocus' analysis, Cross Cat Co stock appears to be undervalued. The current stock price of 円1,000.00 is trading 26.3% below its estimated GF Value™ of 円1,357.55. GuruFocus considers Cross Cat Co to be Modestly Undervalued.

Key valuation signals for TSE:2307:

  • Operating Margin %: 12.46% (50% above median its 10-year median of 8.31)
  • GF Value™: 円1,357.55 vs. price of 円1,000.00 (26.3% below fair value)
  • GF Score™: 77/100
  • Industry Position: 219.5% above the Software median (#754 of 2826)

No single metric tells the full story. See the TSE:2307 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cross Cat Co Business Description

Address 1-2-70 Konan, Minato-ku, Shinagawa Season Terrace, 20th floor, Tokyo, JPN, 108-0075
Cross Cat Co Ltd provides an array of system solutions in the area of system development services and business intelligence. The company provides system solutions and staffing services to the finance and credit, government agencies, local governments, and public enterprises, and manufacturing, distribution, and communications, contributing to the sustainable development of society and the economy.
77GF Score

Get the complete analysis for TSE:2307

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,000.00
Price
円1,357.55
GF Value