Techno Mathematical Co (TSE:3787) 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.
Techno Mathematical Co Operating Margin % Related Terms
Techno Mathematical Co Operating Margin % Historical Data
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The historical data trend for Techno Mathematical 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:3787 vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Techno Mathematical 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.
Techno Mathematical Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Techno Mathematical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Techno Mathematical Co's Operating Margin % falls into.
Techno Mathematical Co 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.
Techno Mathematical Co's Operating Margin % for the fiscal year that ended in Mar. 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.
Techno Mathematical Co (TSE:3787) has a Operating Margin % of 23.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Techno Mathematical Co and its competitors. According to the industry distribution chart, Techno Mathematical Co ranks #1158 out of 2818 companies in the Software industry, placing it in the top 41.1%.
Is Techno Mathematical Co's Operating Margin % too high?
Techno Mathematical Co's current Operating Margin % is 23.50%. The Software industry median Operating Margin % is 3.87. Techno Mathematical Co's value of 23.50% is 508% above this industry median. Based on the distribution chart, Techno Mathematical Co ranks #1158 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Techno Mathematical Co has a GF Score™ of 46/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Techno Mathematical Co's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Techno Mathematical Co ranks #1158 out of 2818 companies for Operating Margin %. This puts Techno Mathematical Co in the upper half of its industry. The industry median Operating Margin % is 3.87. Techno Mathematical Co's value of 23.50% is 508% above this benchmark. 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 3.87, 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. Techno Mathematical Co's current Operating Margin % of 23.50% is 508% 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 Techno Mathematical Co and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Techno Mathematical Co's current Operating Margin % is 23.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Techno Mathematical Co stock overvalued right now?
Based on GuruFocus' analysis, Techno Mathematical Co (TSE:3787) is currently considered Significantly Undervalued. The stock's GF Value™ is 円774.80, compared to a current price of 円294.00 — trading 62.1% below its estimated fair value. The current Operating Margin % is 23.50% and 508% above the Software industry median of 3.87. Techno Mathematical Co's overall GF Score™ is 46/100 with 1 warning sign 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 Techno Mathematical Co (TSE:3787), the current Operating Margin % is 23.50% 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 Techno Mathematical Co (TSE:3787) Overvalued in 2026?
Based on GuruFocus' analysis, Techno Mathematical Co stock appears to be undervalued.
The current stock price of 円294.00 is trading 62.1% below its estimated GF Value™ of 円774.80.
GuruFocus considers Techno Mathematical Co to be Significantly Undervalued.
Key valuation signals for TSE:3787:
Operating Margin %: 23.50%
GF Value™: 円774.80 vs. price of 円294.00 (62.1% below fair value)
Industry Position: 508% above the Software median (#1158 of 2818)
No single metric tells the full story. See the TSE:3787 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Techno Mathematical Co Ltd is a Japan-based company engaged in the development and sale of software and hardware related products. The company provides various kinds of machines to make images, audio, and voice-related software intellectual property development. It offers varieties of products and services, of apparatus, noise reduction, still pictures, one-seg, multimedia broadcasting, window media, low latency and others.
46GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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