Ascentech KKTSE:3565 +7.74%88 Operating Margin % is 27.13% as of Jan. 2026, which is 214% above its 10-year median of 8.63. GuruFocus rates TSE:3565 with a GF Score™ of 88/100 and a GF Value™ of 円511.97 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,818 Software companies, Ascentech KK ranks better than 83.22% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Ascentech KK's Operating Income for the
six
months ended in Jan. 2026 was 円1,742 Mil. Ascentech KK's Revenue for the
six
months ended in Jan. 2026 was 円6,421 Mil. Therefore, Ascentech KK's Operating Margin % for the quarter that ended in Jan. 2026 was 27.13%.
Good Sign:
Ascentech KK operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Ascentech KK's Operating Margin % or its related term are showing as below:
TSE:3565'
s Operating Margin % Range Over the Past 10 Years
Min: 5.87 Med: 8.63 Max: 16.46
Current: 16.46
TSE:3565's Operating Margin % is ranked better than 83.22% of 2818
companies
in the Software industry
Industry Median: 3.875
vs TSE:3565: 16.46
Ascentech KK's 5-Year Average Operating Margin % Growth Rate was 1.80% per year.
Ascentech KK's Operating Income for the
six
months ended in Jan. 2026 was 円1,742 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2026 was 円2,841 Mil.
Ascentech KK (TSE:3565) 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.
Ascentech KK Operating Margin % Related Terms
Ascentech KK Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ascentech KK'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:3565 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Ascentech KK'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.
Ascentech KK Operating Margin % vs Software Industry
For the Software industry and Technology sector, Ascentech KK's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ascentech KK'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.
Ascentech KK's Operating Margin % for the fiscal year that ended in Jan. 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.
Ascentech KK (TSE:3565) has a Operating Margin % of 27.13% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ascentech KK and its competitors. This is 214% above median its historical median of 8.63. Over the past decade, Ascentech KK's Operating Margin % has ranged from 5.87 to 16.46. According to the industry distribution chart, Ascentech KK ranks #473 out of 2818 companies in the Software industry, placing it in the top 16.8%.
Is Ascentech KK's Operating Margin % too high?
Ascentech KK's current Operating Margin % of 27.13% is 214% above median its 10-year median of 8.63. Over the past 10 years, this metric has ranged from a low of 5.87 to a high of 16.46. The Software industry median Operating Margin % is 3.88. Ascentech KK's value of 27.13% is 600.1% above this industry median. Based on the distribution chart, Ascentech KK ranks #473 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Ascentech KK has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ascentech KK's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Ascentech KK ranks #473 out of 2818 companies for Operating Margin %. This places Ascentech KK in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Ascentech KK's value of 27.13% is 600.1% above this benchmark. Historically, Ascentech KK's own Operating Margin % has ranged from 5.87 to 16.46 over the past decade. While the company's 10-year median is 8.63 vs. the industry median of 3.88, Ascentech KK 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 3.88, based on 2,818 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. Ascentech KK's current Operating Margin % of 27.13% is 600.1% 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 Ascentech KK and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ascentech KK's current Operating Margin % is 27.13%, which is 214% above median its own 10-year median of 8.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ascentech KK stock overvalued right now?
Based on GuruFocus' analysis, Ascentech KK (TSE:3565) is currently considered Modestly Undervalued. The stock's GF Value™ is 円511.97, compared to a current price of 円376.00 — trading 26.6% below its estimated fair value. The current Operating Margin % is 27.13%, which is 214% above median its 10-year median of 8.63 and 600.1% above the Software industry median of 3.88. Ascentech KK's overall GF Score™ is 88/100 with 6 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 Ascentech KK (TSE:3565), the current Operating Margin % is 27.13% as of Jan. 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 Ascentech KK (TSE:3565) Overvalued in 2026?
Based on GuruFocus' analysis, Ascentech KK stock appears to be undervalued.
The current stock price of 円376.00 is trading 26.6% below its estimated GF Value™ of 円511.97.
GuruFocus considers Ascentech KK to be Modestly Undervalued.
Key valuation signals for TSE:3565:
Operating Margin %: 27.13% (214% above median its 10-year median of 8.63)
GF Value™: 円511.97 vs. price of 円376.00 (26.6% below fair value)
Industry Position: 600.1% above the Software median (#473 of 2818)
No single metric tells the full story. See the TSE:3565 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ascentech KK is engaged in product development and sales for Virtual Desktop Infrastructure and IT infrastructure solutions with technical consultation and support services. It also provides cloud services. Its services include VDI consulting services, infrastructure solution services, and storage migration services.
88GF Score
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