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Nihon FalcomTSE:3723 +2.66%68 Operating Margin % is 47.45% as of Mar. 2026, which is 12% below its 10-year median of 53.90. GuruFocus rates TSE:3723 with a GF Score™ of 68/100 and a GF Value™ of 円1,730.16 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 553 Interactive Media companies, Nihon Falcom ranks better than 98.01% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Nihon Falcom's Operating Income for the
three
months ended in Mar. 2026 was 円284 Mil. Nihon Falcom's Revenue for the
three
months ended in Mar. 2026 was 円598 Mil. Therefore, Nihon Falcom's Operating Margin % for the quarter that ended in Mar. 2026 was 47.45%.
Warning Sign:
Nihon Falcom Corp operating margin has been in a 5-year decline. The average rate of decline per year is -2.2%.
The historical rank and industry rank for Nihon Falcom's Operating Margin % or its related term are showing as below:
TSE:3723'
s Operating Margin % Range Over the Past 10 Years
Min: 40.76 Med: 53.9 Max: 63.1
Current: 63.1
TSE:3723's Operating Margin % is ranked better than 98.01% of 553
companies
in the Interactive Media industry
Industry Median: 2.84
vs TSE:3723: 63.10
Nihon Falcom's 5-Year Average Operating Margin % Growth Rate was -2.20% per year.
Nihon Falcom's Operating Income for the
three
months ended in Mar. 2026 was 円284 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円2,236 Mil.
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.
Nihon Falcom Operating Margin % Related Terms
Nihon Falcom Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nihon Falcom'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:3723 vs NTES, EA, TTWO: Operating Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Nihon Falcom'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.
Nihon Falcom Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nihon Falcom's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nihon Falcom'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.
Nihon Falcom's Operating Margin % for the fiscal year that ended in Sep. 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.
Nihon Falcom (TSE:3723) has a Operating Margin % of 47.45% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nihon Falcom and its competitors. This is 12% below median its historical median of 53.90. Over the past decade, Nihon Falcom's Operating Margin % has ranged from 40.76 to 63.10. According to the industry distribution chart, Nihon Falcom ranks #11 out of 553 companies in the Interactive Media industry, placing it in the top 2%.
Is Nihon Falcom's Operating Margin % too high?
Nihon Falcom's current Operating Margin % of 47.45% is 12% below median its 10-year median of 53.90. Over the past 10 years, this metric has ranged from a low of 40.76 to a high of 63.10. The Interactive Media industry median Operating Margin % is 2.84. Nihon Falcom's value of 47.45% is 1570.8% above this industry median. Based on the distribution chart, Nihon Falcom ranks #11 out of 553 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Nihon Falcom has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Falcom's Operating Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nihon Falcom ranks #11 out of 553 companies for Operating Margin %. This places Nihon Falcom in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.84. Nihon Falcom's value of 47.45% is 1570.8% above this benchmark. Historically, Nihon Falcom's own Operating Margin % has ranged from 40.76 to 63.10 over the past decade. While the company's 10-year median is 53.90 vs. the industry median of 2.84, Nihon Falcom 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 an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.84, based on 553 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. Nihon Falcom's current Operating Margin % of 47.45% is 1570.8% 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 Nihon Falcom and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Falcom's current Operating Margin % is 47.45%, which is 12% below median its own 10-year median of 53.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Falcom stock overvalued right now?
Based on GuruFocus' analysis, Nihon Falcom (TSE:3723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,730.16, compared to a current price of 円2,627.00 — trading 51.8% above its estimated fair value. The current Operating Margin % is 47.45%, which is 12% below median its 10-year median of 53.90 and 1570.8% above the Interactive Media industry median of 2.84. Nihon Falcom's overall GF Score™ is 68/100 with 3 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 Nihon Falcom (TSE:3723), the current Operating Margin % is 47.45% 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 Nihon Falcom (TSE:3723) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Falcom stock appears to be overvalued.
The current stock price of 円2,627.00 is trading 51.8% above its estimated GF Value™ of 円1,730.16.
GuruFocus considers Nihon Falcom to be Significantly Overvalued.
Key valuation signals for TSE:3723:
Operating Margin %: 47.45% (12% below median its 10-year median of 53.90)
GF Value™: 円1,730.16 vs. price of 円2,627.00 (51.8% above fair value)
Industry Position: 1570.8% above the Interactive Media median (#11 of 553)
No single metric tells the full story. See the TSE:3723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Falcom Corp is a Japan-based company engages in the development and sale of game software. It produces music titles/video titles; plans game software; sells game software and related products; and provides various licenses. It offers role-playing game software and Japanese version of overseas game software as well as home-use game software, among others.
68GF Score
Get the complete analysis for TSE:3723
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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