PCI HoldingsTSE:3918 +0.82%63 Operating Margin % is 5.99% as of Mar. 2026, which is 8% above its 10-year median of 5.53. GuruFocus rates TSE:3918 with a GF Score™ of 63/100 and a GF Value™ of 円1,019.03 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,818 Software companies, PCI Holdings ranks better than 56.14% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. PCI Holdings's Operating Income for the
six
months ended in Mar. 2026 was 円792 Mil. PCI Holdings's Revenue for the
six
months ended in Mar. 2026 was 円13,225 Mil. Therefore, PCI Holdings's Operating Margin % for the quarter that ended in Mar. 2026 was 5.99%.
The historical rank and industry rank for PCI Holdings's Operating Margin % or its related term are showing as below:
TSE:3918'
s Operating Margin % Range Over the Past 10 Years
Min: 4.21 Med: 5.53 Max: 6.94
Current: 5.81
TSE:3918's Operating Margin % is ranked better than 56.14% of 2818
companies
in the Software industry
Industry Median: 3.865
vs TSE:3918: 5.81
PCI Holdings's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
PCI Holdings's Operating Income for the
six
months ended in Mar. 2026 was 円792 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,558 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.
PCI Holdings Operating Margin % Related Terms
PCI Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for PCI Holdings'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:3918 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, PCI Holdings'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.
PCI Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, PCI Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PCI Holdings'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.
PCI Holdings's Operating Margin % for the fiscal year that ended in Mar. 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.
PCI Holdings (TSE:3918) has a Operating Margin % of 5.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PCI Holdings and its competitors. This is near median its historical median of 5.53. Over the past decade, PCI Holdings' Operating Margin % has ranged from 4.21 to 6.94. According to the industry distribution chart, PCI Holdings ranks #1236 out of 2818 companies in the Software industry, placing it in the top 43.9%.
Is PCI Holdings' Operating Margin % too high?
PCI Holdings' current Operating Margin % of 5.99% is near median its 10-year median of 5.53. Over the past 10 years, this metric has ranged from a low of 4.21 to a high of 6.94. The Software industry median Operating Margin % is 3.87. PCI Holdings' value of 5.99% is 55% above this industry median. Based on the distribution chart, PCI Holdings ranks #1236 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, PCI Holdings has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PCI Holdings' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, PCI Holdings ranks #1236 out of 2818 companies for Operating Margin %. This puts PCI Holdings in the upper half of its industry. The industry median Operating Margin % is 3.87. PCI Holdings' value of 5.99% is 55% above this benchmark. Historically, PCI Holdings' own Operating Margin % has ranged from 4.21 to 6.94 over the past decade. While the company's 10-year median is 5.53 vs. the industry median of 3.87, PCI Holdings 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 2,818 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. PCI Holdings's current Operating Margin % of 5.99% is 55% 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 PCI Holdings 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. PCI Holdings's current Operating Margin % is 5.99%, which is near median its own 10-year median of 5.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PCI Holdings stock overvalued right now?
Based on GuruFocus' analysis, PCI Holdings (TSE:3918) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,019.03, compared to a current price of 円1,225.00 — trading 20.2% above its estimated fair value. The current Operating Margin % is 5.99%, which is near median its 10-year median of 5.53 and 55% above the Software industry median of 3.87. PCI Holdings' overall GF Score™ is 63/100 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 PCI Holdings (TSE:3918), the current Operating Margin % is 5.99% 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 PCI Holdings (TSE:3918) Overvalued in 2026?
Based on GuruFocus' analysis, PCI Holdings stock appears to be overvalued.
The current stock price of 円1,225.00 is trading 20.2% above its estimated GF Value™ of 円1,019.03.
GuruFocus considers PCI Holdings to be Modestly Overvalued.
Key valuation signals for TSE:3918:
Operating Margin %: 5.99% (near median its 10-year median of 5.53)
GF Value™: 円1,019.03 vs. price of 円1,225.00 (20.2% above fair value)
Industry Position: 55% above the Software median (#1236 of 2818)
No single metric tells the full story. See the TSE:3918 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PCI Holdings Inc provides information and technology solutions. The company's business segments are Technical Solutions, Business Solutions, and Internet of Things and Internet of Everything Solutions.
63GF Score
Get the complete analysis for TSE:3918
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:3918 has been successfully added to your 
