Daiwa Computer CoTSE:3816 84 Operating Margin % is 4.30% as of Jan. 2026, which is 74% below its 10-year median of 16.42. GuruFocus rates TSE:3816 with a GF Score™ of 84/100 and a GF Value™ of 円1,130.42 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,820 Software companies, Daiwa Computer Co ranks better than 70.57% on this metric.
Daiwa Computer Co (TSE:3816) 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.
Daiwa Computer Co Operating Margin % Related Terms
Daiwa Computer Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Daiwa Computer 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:3816 vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Daiwa Computer 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.
Daiwa Computer Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Daiwa Computer Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Daiwa Computer 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.
Daiwa Computer Co's Operating Margin % for the fiscal year that ended in Jul. 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.
Daiwa Computer Co (TSE:3816) has a Operating Margin % of 4.30% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Daiwa Computer Co and its competitors. This is 74% below median its historical median of 16.42. Over the past decade, Daiwa Computer Co's Operating Margin % has ranged from 10.39 to 17.83. According to the industry distribution chart, Daiwa Computer Co ranks #830 out of 2820 companies in the Software industry, placing it in the top 29.4%.
Is Daiwa Computer Co's Operating Margin % too high?
Daiwa Computer Co's current Operating Margin % of 4.30% is 74% below median its 10-year median of 16.42. Over the past 10 years, this metric has ranged from a low of 10.39 to a high of 17.83. The Software industry median Operating Margin % is 3.87. Daiwa Computer Co's value of 4.30% is 11.3% above this industry median. Based on the distribution chart, Daiwa Computer Co ranks #830 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Daiwa Computer Co has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Daiwa Computer Co's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Daiwa Computer Co ranks #830 out of 2820 companies for Operating Margin %. This puts Daiwa Computer Co in the upper half of its industry. The industry median Operating Margin % is 3.87. Daiwa Computer Co's value of 4.30% is 11.3% above this benchmark. Historically, Daiwa Computer Co's own Operating Margin % has ranged from 10.39 to 17.83 over the past decade. While the company's 10-year median is 16.42 vs. the industry median of 3.87, Daiwa Computer 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 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. Daiwa Computer Co's current Operating Margin % of 4.30% is 11.3% 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 Daiwa Computer 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. Daiwa Computer Co's current Operating Margin % is 4.30%, which is 74% below median its own 10-year median of 16.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Computer Co stock overvalued right now?
Based on GuruFocus' analysis, Daiwa Computer Co (TSE:3816) is currently considered Fairly Valued. The stock's GF Value™ is 円1,130.42, compared to a current price of 円1,085.00 — trading 4% below its estimated fair value. The current Operating Margin % is 4.30%, which is 74% below median its 10-year median of 16.42 and 11.3% above the Software industry median of 3.87. Daiwa Computer Co's overall GF Score™ is 84/100 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 Daiwa Computer Co (TSE:3816), the current Operating Margin % is 4.30% as of Jan. 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 Daiwa Computer Co (TSE:3816) Overvalued in 2026?
Based on GuruFocus' analysis, Daiwa Computer Co stock appears to be undervalued.
The current stock price of 円1,085.00 is trading 4% below its estimated GF Value™ of 円1,130.42.
GuruFocus considers Daiwa Computer Co to be Fairly Valued.
Key valuation signals for TSE:3816:
Operating Margin %: 4.30% (74% below median its 10-year median of 16.42)
GF Value™: 円1,130.42 vs. price of 円1,085.00 (4% below fair value)
Industry Position: 11.3% above the Software median (#830 of 2820)
No single metric tells the full story. See the TSE:3816 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daiwa Computer Co Ltd is engaged in designing business applications, web-related system, software development, operation support, system consulting, related equipment sales, development and sale of packaged software, consulting, SaaS/ASP service. It also engaged in the production, processing, and sale of agricultural crops. Its segments include: Software development-related business, which covers the construction and operation of information systems; and the Service integration business, which covers SaaS-type software services.
84GF Score
Get the complete analysis for TSE:3816
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:3816 has been successfully added to your 
