Change HoldingsTSE:3962 +2.17%73 Operating Margin % is 4.78% as of Mar. 2026, which is 80% below its 10-year median of 23.43. GuruFocus rates TSE:3962 with a GF Score™ of 73/100 and a GF Value™ of 円1,861.20 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,820 Software companies, Change Holdings ranks better than 88.76% on this metric.
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.
Change Holdings Operating Margin % Related Terms
Change Holdings Operating Margin % Historical Data
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The historical data trend for Change 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:3962 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Change 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.
Change Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, Change Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Change 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.
Change Holdings'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.
Change Holdings (TSE:3962) has a Operating Margin % of 4.78% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Change Holdings and its competitors. This is 80% below median its historical median of 23.43. Over the past decade, Change Holdings' Operating Margin % has ranged from 16.73 to 39.87. According to the industry distribution chart, Change Holdings ranks #317 out of 2820 companies in the Software industry, placing it in the top 11.2%.
Is Change Holdings' Operating Margin % too high?
Change Holdings' current Operating Margin % of 4.78% is 80% below median its 10-year median of 23.43. Over the past 10 years, this metric has ranged from a low of 16.73 to a high of 39.87. The Software industry median Operating Margin % is 3.87. Change Holdings' value of 4.78% is 23.7% above this industry median. Based on the distribution chart, Change Holdings ranks #317 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Change Holdings has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Change Holdings' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Change Holdings ranks #317 out of 2820 companies for Operating Margin %. This places Change Holdings in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Change Holdings' value of 4.78% is 23.7% above this benchmark. Historically, Change Holdings' own Operating Margin % has ranged from 16.73 to 39.87 over the past decade. While the company's 10-year median is 23.43 vs. the industry median of 3.87, Change 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 2,820 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. Change Holdings's current Operating Margin % of 4.78% is 23.7% 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 Change 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. Change Holdings's current Operating Margin % is 4.78%, which is 80% below median its own 10-year median of 23.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Change Holdings stock overvalued right now?
Based on GuruFocus' analysis, Change Holdings (TSE:3962) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,861.20, compared to a current price of 円940.00 — trading 49.5% below its estimated fair value. The current Operating Margin % is 4.78%, which is 80% below median its 10-year median of 23.43 and 23.7% above the Software industry median of 3.87. Change Holdings' overall GF Score™ is 73/100 with 5 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 Change Holdings (TSE:3962), the current Operating Margin % is 4.78% 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 Change Holdings (TSE:3962) Overvalued in 2026?
Based on GuruFocus' analysis, Change Holdings stock appears to be undervalued.
The current stock price of 円940.00 is trading 49.5% below its estimated GF Value™ of 円1,861.20.
GuruFocus considers Change Holdings to be Significantly Undervalued.
Key valuation signals for TSE:3962:
Operating Margin %: 4.78% (80% below median its 10-year median of 23.43)
GF Value™: 円1,861.20 vs. price of 円940.00 (49.5% below fair value)
Industry Position: 23.7% above the Software median (#317 of 2820)
No single metric tells the full story. See the TSE:3962 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Change Holdings Inc provides mobility, IoT (Internet of Things) data, security and IT human resources training services. It segments are: Public Tech and NEW-IT Transformation Business. The Public Tech segment covers local government support projects that aims to realize high value-added resident services by utilizing ICT technology to promote the improvement of local government business productivity. The NEW-IT Transformation Business segment promotes digital transformation through various algorithms such as AI, voice Internet, mobility, IoT, cloud, security, services utilizing basic technology, and training for digital human resources. It also provides digital transformation solutions by combining libraries based on customer needs to realize customer digital transformation.
73GF Score
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