Digital ArtsTSE:2326 +0.42%78 Operating Margin % is 46.47% as of Dec. 2025, which is 8% above its 10-year median of 42.96. GuruFocus rates TSE:2326 with a GF Score™ of 78/100 and a GF Value™ of 円6,197.67 (Significantly Undervalued). Among 2,820 Software companies, Digital Arts ranks better than 98.4% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Digital Arts's Operating Income for the
three
months ended in Dec. 2025 was 円1,321 Mil. Digital Arts's Revenue for the
three
months ended in Dec. 2025 was 円2,843 Mil. Therefore, Digital Arts's Operating Margin % for the quarter that ended in Dec. 2025 was 46.47%.
The historical rank and industry rank for Digital Arts's Operating Margin % or its related term are showing as below:
TSE:2326'
s Operating Margin % Range Over the Past 10 Years
Min: 36.06 Med: 42.96 Max: 45.67
Current: 44.23
TSE:2326's Operating Margin % is ranked better than 98.4% of 2820
companies
in the Software industry
Industry Median: 3.865
vs TSE:2326: 44.23
Digital Arts's 5-Year Average Operating Margin % Growth Rate was -0.10% per year.
Digital Arts's Operating Income for the
three
months ended in Dec. 2025 was 円1,321 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円4,792 Mil.
Digital Arts (TSE:2326) 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.
Digital Arts Operating Margin % Related Terms
Digital Arts Operating Margin % Historical Data
* Premium members only.
The historical data trend for Digital Arts'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.
TSE:2326 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Digital Arts'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.
Digital Arts Operating Margin % vs Software Industry
For the Software industry and Technology sector, Digital Arts's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Digital Arts'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.
Digital Arts'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.
Digital Arts (TSE:2326) has a Operating Margin % of 46.47% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Digital Arts and its competitors. This is near median its historical median of 42.96. Over the past decade, Digital Arts' Operating Margin % has ranged from 36.06 to 45.67. According to the industry distribution chart, Digital Arts ranks #45 out of 2820 companies in the Software industry, placing it in the top 1.6%.
Is Digital Arts' Operating Margin % too high?
Digital Arts' current Operating Margin % of 46.47% is near median its 10-year median of 42.96. Over the past 10 years, this metric has ranged from a low of 36.06 to a high of 45.67. The Software industry median Operating Margin % is 3.87. Digital Arts' value of 46.47% is 1102.3% above this industry median. Based on the distribution chart, Digital Arts ranks #45 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Digital Arts has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Arts' Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Digital Arts ranks #45 out of 2820 companies for Operating Margin %. This places Digital Arts in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Digital Arts' value of 46.47% is 1102.3% above this benchmark. Historically, Digital Arts' own Operating Margin % has ranged from 36.06 to 45.67 over the past decade. While the company's 10-year median is 42.96 vs. the industry median of 3.87, Digital Arts 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. Digital Arts's current Operating Margin % of 46.47% is 1102.3% 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 Digital Arts 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. Digital Arts's current Operating Margin % is 46.47%, which is near median its own 10-year median of 42.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Arts stock overvalued right now?
Based on GuruFocus' analysis, Digital Arts (TSE:2326) is currently considered Significantly Undervalued. The stock's GF Value™ is 円6,197.67, compared to a current price of 円3,570.00 — trading 42.4% below its estimated fair value. The current Operating Margin % is 46.47%, which is near median its 10-year median of 42.96 and 1102.3% above the Software industry median of 3.87. Digital Arts' overall GF Score™ is 78/100. 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 Digital Arts (TSE:2326), the current Operating Margin % is 46.47% as of Dec. 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 Digital Arts (TSE:2326) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Arts stock appears to be undervalued.
The current stock price of 円3,570.00 is trading 42.4% below its estimated GF Value™ of 円6,197.67.
GuruFocus considers Digital Arts to be Significantly Undervalued.
Key valuation signals for TSE:2326:
Operating Margin %: 46.47% (near median its 10-year median of 42.96)
GF Value™: 円6,197.67 vs. price of 円3,570.00 (42.4% below fair value)
Industry Position: 1102.3% above the Software median (#45 of 2820)
No single metric tells the full story. See the TSE:2326 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Arts Inc develops Internet filtering software for business, private, and educational use. Its products protect users and networks from harmful Internet content and prevent inappropriate usage. Its software products are supplied to the corporate, public-sector (government ministries and agencies and schools), and consumer markets.
78GF Score
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