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Papyless CoTSE:3641 +1.80%66 Operating Margin % is 2.08% as of Sep. 2025, which is 71% below its 10-year median of 7.25. GuruFocus rates TSE:3641 with a GF Score™ of 66/100 and a GF Value™ of 円805.67 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,013 Media - Diversified companies, Papyless Co ranks worse than 60.22% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Papyless Co's Operating Income for the
six
months ended in Sep. 2025 was 円155 Mil. Papyless Co's Revenue for the
six
months ended in Sep. 2025 was 円7,457 Mil. Therefore, Papyless Co's Operating Margin % for the quarter that ended in Sep. 2025 was 2.08%.
The historical rank and industry rank for Papyless Co's Operating Margin % or its related term are showing as below:
TSE:3641'
s Operating Margin % Range Over the Past 10 Years
Min: -1.96 Med: 7.25 Max: 15.88
Current: -0.46
TSE:3641's Operating Margin % is ranked worse than 60.22% of 1013
companies
in the Media - Diversified industry
Industry Median: 2.42
vs TSE:3641: -0.46
Papyless Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Papyless Co's Operating Income for the
six
months ended in Sep. 2025 was 円155 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2025 was 円-69 Mil.
Papyless Co (TSE:3641) 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.
Papyless Co Operating Margin % Related Terms
Papyless Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Papyless 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:3641 vs NYT, WLY: Operating Margin % Comparison
For the Publishing subindustry, Papyless 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.
Papyless Co Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Papyless Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Papyless 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.
Papyless Co's Operating Margin % for the fiscal year that ended in Mar. 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.
Papyless Co (TSE:3641) has a Operating Margin % of 2.08% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Papyless Co and its competitors. This is 71% below median its historical median of 7.25. According to the industry distribution chart, Papyless Co ranks #610 out of 1013 companies in the Media - Diversified industry, placing it in the top 60.2%.
Is Papyless Co's Operating Margin % too high?
Papyless Co's current Operating Margin % of 2.08% is 71% below median its 10-year median of 7.25. The Media - Diversified industry median Operating Margin % is 2.42. Papyless Co's value of 2.08% is 14% below this industry median. Based on the distribution chart, Papyless Co ranks #610 out of 1013 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Papyless Co has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Papyless Co's Operating Margin % compare to NYT and WLY?
According to the Media - Diversified industry distribution chart, Papyless Co ranks #610 out of 1013 companies for Operating Margin %. This places Papyless Co in the lower half of its industry. The industry median Operating Margin % is 2.42. Papyless Co's value of 2.08% is 14% below this benchmark. While the company's 10-year median is 7.25 vs. the industry median of 2.42, Papyless 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.42, based on 1,013 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. Papyless Co's current Operating Margin % of 2.08% is 14% 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 Papyless Co and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Papyless Co's current Operating Margin % is 2.08%, which is 71% below median its own 10-year median of 7.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Papyless Co stock overvalued right now?
Based on GuruFocus' analysis, Papyless Co (TSE:3641) is currently considered Modestly Overvalued. The stock's GF Value™ is 円805.67, compared to a current price of 円959.00 — trading 19% above its estimated fair value. The current Operating Margin % is 2.08%, which is 71% below median its 10-year median of 7.25 and 14% below the Media - Diversified industry median of 2.42. Papyless Co's overall GF Score™ is 66/100 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 Papyless Co (TSE:3641), the current Operating Margin % is 2.08% as of Sep. 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 Papyless Co (TSE:3641) Overvalued in 2026?
Based on GuruFocus' analysis, Papyless Co stock appears to be overvalued.
The current stock price of 円959.00 is trading 19% above its estimated GF Value™ of 円805.67.
GuruFocus considers Papyless Co to be Modestly Overvalued.
Key valuation signals for TSE:3641:
Operating Margin %: 2.08% (71% below median its 10-year median of 7.25)
GF Value™: 円805.67 vs. price of 円959.00 (19% above fair value)
Industry Position: 14% below the Media - Diversified median (#610 of 1013)
No single metric tells the full story. See the TSE:3641 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Papyless Co Ltd is a Japan-based company engaged in the sale, rental, and distribution of electronic books (E-books). It offers novel and non-fiction, practical books, photo books, comics, magazines, business and education, audio and picture novels, cartoons, and adult books, as well as photo album books.
66GF Score
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