Generation Pass CoTSE:3195 -2.81%58 Operating Margin % is 1.59% as of Apr. 2026, which is 212% above its 10-year median of 0.51. GuruFocus rates TSE:3195 with a GF Score™ of 58/100 and a GF Value™ of 円324.64 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Generation Pass Co ranks worse than 69.5% on this metric.
Generation Pass Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Generation Pass Co (TSE:3195) 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.
Generation Pass Co Operating Margin % Related Terms
Generation Pass Co Operating Margin % Historical Data
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The historical data trend for Generation Pass 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.
TSE:3195 vs AMZN, BABA, PDD: Operating Margin % Comparison
For the Internet Retail subindustry, Generation Pass 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.
Generation Pass Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Generation Pass Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Generation Pass Co'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.
Generation Pass Co's Operating Margin % for the fiscal year that ended in Oct. 2025 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.
Generation Pass Co (TSE:3195) has a Operating Margin % of 1.59% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Generation Pass Co and its competitors. This is 212% above median its historical median of 0.51. According to the industry distribution chart, Generation Pass Co ranks #784 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 69.5%.
Is Generation Pass Co's Operating Margin % too high?
Generation Pass Co's current Operating Margin % of 1.59% is 212% above median its 10-year median of 0.51. The Retail - Cyclical industry median Operating Margin % is 3.91. Generation Pass Co's value of 1.59% is 59.3% below this industry median. Based on the distribution chart, Generation Pass Co ranks #784 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Generation Pass Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Generation Pass Co's Operating Margin % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Generation Pass Co ranks #784 out of 1128 companies for Operating Margin %. This places Generation Pass Co in the lower half of its industry. The industry median Operating Margin % is 3.91. Generation Pass Co's value of 1.59% is 59.3% below this benchmark. While the company's 10-year median is 0.51 vs. the industry median of 3.91, Generation Pass Co has consistently been below 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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. Generation Pass Co's current Operating Margin % of 1.59% is 59.3% below 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 Generation Pass Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Generation Pass Co's current Operating Margin % is 1.59%, which is 212% above median its own 10-year median of 0.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Generation Pass Co stock overvalued right now?
Based on GuruFocus' analysis, Generation Pass Co (TSE:3195) is currently considered Significantly Overvalued. The stock's GF Value™ is 円324.64, compared to a current price of 円485.00 — trading 49.4% above its estimated fair value. The current Operating Margin % is 1.59%, which is 212% above median its 10-year median of 0.51 and 59.3% below the Retail - Cyclical industry median of 3.91. Generation Pass Co's overall GF Score™ is 58/100 with 4 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 Generation Pass Co (TSE:3195), the current Operating Margin % is 1.59% as of Apr. 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 Generation Pass Co (TSE:3195) Overvalued in 2026?
Based on GuruFocus' analysis, Generation Pass Co stock appears to be overvalued.
The current stock price of 円485.00 is trading 49.4% above its estimated GF Value™ of 円324.64.
GuruFocus considers Generation Pass Co to be Significantly Overvalued.
Key valuation signals for TSE:3195:
Operating Margin %: 1.59% (212% above median its 10-year median of 0.51)
GF Value™: 円324.64 vs. price of 円485.00 (49.4% above fair value)
Industry Position: 59.3% below the Retail - Cyclical median (#784 of 1128)
No single metric tells the full story. See the TSE:3195 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Generation Pass Co Ltd provides e-commerce marketing and support services in Japan. The company's operating segments include EC Marketing Business and Product Planning related business. The EC Marketing Business involves collecting and analyzing big data from EC sites operated by the group. The Product Planning related segment is a project that utilizes the product data acquired by the company's EC marketing business, and mainly engages in planning and development of products in collaboration with manufacturers.
58GF Score
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