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SOFTMAX CoTSE:3671 +0.32%79 Operating Margin % is 7.06% as of Jun. 2026, which is 34% below its 10-year median of 10.77. GuruFocus rates TSE:3671 with a GF Score™ of 79/100 and a GF Value™ of 円285.45 (Fairly Valued). The stock has 6 warning signs investors should review. Among 667 Healthcare Providers & Services companies, SOFTMAX Co ranks better than 64.17% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SOFTMAX Co's Operating Income for the
three
months ended in Jun. 2026 was 円112 Mil. SOFTMAX Co's Revenue for the
three
months ended in Jun. 2026 was 円1,591 Mil. Therefore, SOFTMAX Co's Operating Margin % for the quarter that ended in Jun. 2026 was 7.06%.
Warning Sign:
SOFTMAX Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for SOFTMAX Co's Operating Margin % or its related term are showing as below:
TSE:3671'
s Operating Margin % Range Over the Past 10 Years
Min: -3.79 Med: 10.77 Max: 13.13
Current: 8.73
TSE:3671's Operating Margin % is ranked better than 64.17% of 667
companies
in the Healthcare Providers & Services industry
Industry Median: 5.03
vs TSE:3671: 8.73
SOFTMAX Co's 5-Year Average Operating Margin % Growth Rate was -1.10% per year.
SOFTMAX Co's Operating Income for the
three
months ended in Jun. 2026 was 円112 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was 円339 Mil.
SOFTMAX Co (TSE:3671) 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.
SOFTMAX Co Operating Margin % Related Terms
SOFTMAX Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for SOFTMAX 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:3671 vs VEEV, BTSG, HQY: Operating Margin % Comparison
For the Health Information Services subindustry, SOFTMAX 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.
SOFTMAX Co Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, SOFTMAX Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SOFTMAX 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.
SOFTMAX Co's Operating Margin % for the fiscal year that ended in Dec. 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.
SOFTMAX Co (TSE:3671) has a Operating Margin % of 7.06% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SOFTMAX Co and its competitors. This is 34% below median its historical median of 10.77. According to the industry distribution chart, SOFTMAX Co ranks #239 out of 667 companies in the Healthcare Providers & Services industry, placing it in the top 35.8%.
Is SOFTMAX Co's Operating Margin % too high?
SOFTMAX Co's current Operating Margin % of 7.06% is 34% below median its 10-year median of 10.77. The Healthcare Providers & Services industry median Operating Margin % is 5.03. SOFTMAX Co's value of 7.06% is 40.4% above this industry median. Based on the distribution chart, SOFTMAX Co ranks #239 out of 667 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, SOFTMAX Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SOFTMAX Co's Operating Margin % compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, SOFTMAX Co ranks #239 out of 667 companies for Operating Margin %. This puts SOFTMAX Co in the upper half of its industry. The industry median Operating Margin % is 5.03. SOFTMAX Co's value of 7.06% is 40.4% above this benchmark. While the company's 10-year median is 10.77 vs. the industry median of 5.03, SOFTMAX Co 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 Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 5.03, based on 667 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. SOFTMAX Co's current Operating Margin % of 7.06% is 40.4% 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 SOFTMAX Co and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 5.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SOFTMAX Co's current Operating Margin % is 7.06%, which is 34% below median its own 10-year median of 10.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SOFTMAX Co stock overvalued right now?
Based on GuruFocus' analysis, SOFTMAX Co (TSE:3671) is currently considered Fairly Valued. The stock's GF Value™ is 円285.45, compared to a current price of 円310.00 — trading 8.6% above its estimated fair value. The current Operating Margin % is 7.06%, which is 34% below median its 10-year median of 10.77 and 40.4% above the Healthcare Providers & Services industry median of 5.03. SOFTMAX Co's overall GF Score™ is 79/100 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 SOFTMAX Co (TSE:3671), the current Operating Margin % is 7.06% as of Jun. 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 SOFTMAX Co (TSE:3671) Overvalued in 2026?
Based on GuruFocus' analysis, SOFTMAX Co stock appears to be overvalued.
The current stock price of 円310.00 is trading 8.6% above its estimated GF Value™ of 円285.45.
GuruFocus considers SOFTMAX Co to be Fairly Valued.
Key valuation signals for TSE:3671:
Operating Margin %: 7.06% (34% below median its 10-year median of 10.77)
GF Value™: 円285.45 vs. price of 円310.00 (8.6% above fair value)
Industry Position: 40.4% above the Healthcare Providers & Services median (#239 of 667)
No single metric tells the full story. See the TSE:3671 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SOFTMAX Co Ltd provides optimal solutions for customers based on their developed PlusUs series such as Web type electronic charts and medical accounting. It offers Web-type electronic medical record and ordering systems, health checkup systems, radiology department information systems, rehabilitation department systems, surgical department systems, hospital goods management systems, and nursing care management systems. Geographically it operates through the region of Japan.
79GF Score
Get the complete analysis for TSE:3671
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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