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Cube SystemTSE:2335 +1.32%73 Operating Margin % is 8.87% as of Mar. 2026, which is 14% above its 10-year median of 7.75. GuruFocus rates TSE:2335 with a GF Score™ of 73/100 and a GF Value™ of 円1,121.23 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,820 Software companies, Cube System ranks better than 65.64% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Cube System's Operating Income for the
six
months ended in Mar. 2026 was 円830 Mil. Cube System's Revenue for the
six
months ended in Mar. 2026 was 円9,356 Mil. Therefore, Cube System's Operating Margin % for the quarter that ended in Mar. 2026 was 8.87%.
The historical rank and industry rank for Cube System's Operating Margin % or its related term are showing as below:
TSE:2335'
s Operating Margin % Range Over the Past 10 Years
Min: 6.05 Med: 7.75 Max: 8.9
Current: 8.45
TSE:2335's Operating Margin % is ranked better than 65.64% of 2820
companies
in the Software industry
Industry Median: 3.895
vs TSE:2335: 8.45
Cube System's 5-Year Average Operating Margin % Growth Rate was -0.60% per year.
Cube System's Operating Income for the
six
months ended in Mar. 2026 was 円830 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,563 Mil.
Cube System (TSE:2335) 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.
Cube System Operating Margin % Related Terms
Cube System Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cube System'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:2335 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Cube System'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.
Cube System Operating Margin % vs Software Industry
For the Software industry and Technology sector, Cube System's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cube System'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.
Cube System'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.
Cube System (TSE:2335) has a Operating Margin % of 8.87% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cube System and its competitors. This is 14% above median its historical median of 7.75. Over the past decade, Cube System's Operating Margin % has ranged from 6.05 to 8.90. According to the industry distribution chart, Cube System ranks #969 out of 2820 companies in the Software industry, placing it in the top 34.4%.
Is Cube System's Operating Margin % too high?
Cube System's current Operating Margin % of 8.87% is 14% above median its 10-year median of 7.75. Over the past 10 years, this metric has ranged from a low of 6.05 to a high of 8.90. The Software industry median Operating Margin % is 3.90. Cube System's value of 8.87% is 127.7% above this industry median. Based on the distribution chart, Cube System ranks #969 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Cube System has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cube System's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Cube System ranks #969 out of 2820 companies for Operating Margin %. This puts Cube System in the upper half of its industry. The industry median Operating Margin % is 3.90. Cube System's value of 8.87% is 127.7% above this benchmark. Historically, Cube System's own Operating Margin % has ranged from 6.05 to 8.90 over the past decade. While the company's 10-year median is 7.75 vs. the industry median of 3.90, Cube System 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 2,820 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. Cube System's current Operating Margin % of 8.87% is 127.7% 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 Cube System 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. Cube System's current Operating Margin % is 8.87%, which is 14% above median its own 10-year median of 7.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cube System stock overvalued right now?
Based on GuruFocus' analysis, Cube System (TSE:2335) is currently considered Fairly Valued. The stock's GF Value™ is 円1,121.23, compared to a current price of 円1,076.00 — trading 4% below its estimated fair value. The current Operating Margin % is 8.87%, which is 14% above median its 10-year median of 7.75 and 127.7% above the Software industry median of 3.90. Cube System's overall GF Score™ is 73/100 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 Cube System (TSE:2335), the current Operating Margin % is 8.87% 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 Cube System (TSE:2335) Overvalued in 2026?
Based on GuruFocus' analysis, Cube System stock appears to be undervalued.
The current stock price of 円1,076.00 is trading 4% below its estimated GF Value™ of 円1,121.23.
GuruFocus considers Cube System to be Fairly Valued.
Key valuation signals for TSE:2335:
Operating Margin %: 8.87% (14% above median its 10-year median of 7.75)
GF Value™: 円1,121.23 vs. price of 円1,076.00 (4% below fair value)
Industry Position: 127.7% above the Software median (#969 of 2820)
No single metric tells the full story. See the TSE:2335 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cube System Inc is an independent information technology company. It organized into three service lines: system integration services, professional services and system outsourcing services. The system integration service includes business system design and development, system migration, downsizing, system transition and offshore development services. The system outsourcing services include the management of business applications, as well as the operation and management of systems. The professional service includes system consulting, system transition, database management and information infrastructure construction services.
73GF Score
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