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SAKURA Internet (TSE:3778) Operating Margin % : 14.51% (As of Sep. 2024)


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What is SAKURA Internet Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. SAKURA Internet's Operating Income for the three months ended in Sep. 2024 was 円1,064 Mil. SAKURA Internet's Revenue for the three months ended in Sep. 2024 was 円7,336 Mil. Therefore, SAKURA Internet's Operating Margin % for the quarter that ended in Sep. 2024 was 14.51%.

Good Sign:

SAKURA Internet Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for SAKURA Internet's Operating Margin % or its related term are showing as below:

TSE:3778' s Operating Margin % Range Over the Past 10 Years
Min: 2.91   Med: 4.85   Max: 18.75
Current: 10.96


TSE:3778's Operating Margin % is ranked better than
73.09% of 2776 companies
in the Software industry
Industry Median: 3.665 vs TSE:3778: 10.96

SAKURA Internet's 5-Year Average Operating Margin % Growth Rate was 5.30% per year.

SAKURA Internet's Operating Income for the three months ended in Sep. 2024 was 円1,064 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was 円3,022 Mil.


SAKURA Internet Operating Margin % Historical Data

The historical data trend for SAKURA Internet'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.

* Premium members only.

SAKURA Internet Operating Margin % Chart

SAKURA Internet Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.29 6.23 3.82 5.30 4.05

SAKURA Internet Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.75 7.06 3.91 14.51 15.87

Competitive Comparison of SAKURA Internet's Operating Margin %

For the Information Technology Services subindustry, SAKURA Internet'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.


SAKURA Internet's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, SAKURA Internet's Operating Margin % distribution charts can be found below:

* The bar in red indicates where SAKURA Internet's Operating Margin % falls into.


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SAKURA Internet Operating Margin % Calculation

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.

SAKURA Internet's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=884.773 / 21826.794
=4.05 %

SAKURA Internet's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1064.2 / 7335.885
=14.51 %

* 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.


SAKURA Internet  (TSE:3778) 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 Nokia’s 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.


SAKURA Internet Operating Margin % Related Terms

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SAKURA Internet Business Description

Traded in Other Exchanges
N/A
Address
Kita-ku Osu-machi 4-20 Grandefront, Osaka Tower A 35 Floor, Osaka Prefecture, Osaka, JPN, 530-0011
SAKURA Internet Inc is a Japan-based web hosting company. It operates a data center and leases space to store clients' servers and network equipment. Services offered by SAKURA include rental server, Virtual Private Server (VPS), VPS for windows, cloud server, data center, and the Internet of Things (IoT) platform service. The company is also engaged in the planning, production, and sales of multimedia, computer software, computers and their peripheral equipment. The company also leases and manages real estate.

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