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Eltes CoTSE:3967 -0.17%64 Operating Margin % is 7.01% as of Feb. 2026, which is 92% above its 10-year median of 3.66. GuruFocus rates TSE:3967 with a GF Score™ of 64/100 and a GF Value™ of 円973.97 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,820 Software companies, Eltes Co ranks better than 52.98% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Eltes Co's Operating Income for the
six
months ended in Feb. 2026 was 円339 Mil. Eltes Co's Revenue for the
six
months ended in Feb. 2026 was 円4,839 Mil. Therefore, Eltes Co's Operating Margin % for the quarter that ended in Feb. 2026 was 7.01%.
The historical rank and industry rank for Eltes Co's Operating Margin % or its related term are showing as below:
TSE:3967'
s Operating Margin % Range Over the Past 10 Years
Min: -16.77 Med: 3.66 Max: 13.3
Current: 4.82
TSE:3967's Operating Margin % is ranked better than 52.98% of 2820
companies
in the Software industry
Industry Median: 3.895
vs TSE:3967: 4.82
Eltes Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Eltes Co's Operating Income for the
six
months ended in Feb. 2026 was 円339 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円431 Mil.
Eltes Co (TSE:3967) 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.
Eltes Co Operating Margin % Related Terms
Eltes Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Eltes 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:3967 vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, Eltes 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.
Eltes Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Eltes Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eltes 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.
Eltes Co's Operating Margin % for the fiscal year that ended in Feb. 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.
Eltes Co (TSE:3967) has a Operating Margin % of 7.01% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Eltes Co and its competitors. This is 92% above median its historical median of 3.66. According to the industry distribution chart, Eltes Co ranks #1326 out of 2820 companies in the Software industry, placing it in the top 47%.
Is Eltes Co's Operating Margin % too high?
Eltes Co's current Operating Margin % of 7.01% is 92% above median its 10-year median of 3.66. The Software industry median Operating Margin % is 3.90. Eltes Co's value of 7.01% is 80% above this industry median. Based on the distribution chart, Eltes Co ranks #1326 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Eltes Co has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Eltes Co's Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Eltes Co ranks #1326 out of 2820 companies for Operating Margin %. This puts Eltes Co in the upper half of its industry. The industry median Operating Margin % is 3.90. Eltes Co's value of 7.01% is 80% above this benchmark. While the company's 10-year median is 3.66 vs. the industry median of 3.90, Eltes 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 3.90, 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. Eltes Co's current Operating Margin % of 7.01% is 80% 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 Eltes Co and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eltes Co's current Operating Margin % is 7.01%, which is 92% above median its own 10-year median of 3.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eltes Co stock overvalued right now?
Based on GuruFocus' analysis, Eltes Co (TSE:3967) is currently considered Possible Value Trap. The stock's GF Value™ is 円973.97, compared to a current price of 円580.00 — trading 40.4% below its estimated fair value. The current Operating Margin % is 7.01%, which is 92% above median its 10-year median of 3.66 and 80% above the Software industry median of 3.90. Eltes Co's overall GF Score™ is 64/100 with 6 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 Eltes Co (TSE:3967), the current Operating Margin % is 7.01% as of Feb. 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 Eltes Co (TSE:3967) Overvalued in 2026?
Based on GuruFocus' analysis, Eltes Co stock appears to be undervalued.
The current stock price of 円580.00 is trading 40.4% below its estimated GF Value™ of 円973.97.
GuruFocus considers Eltes Co to be Possible Value Trap.
Key valuation signals for TSE:3967:
Operating Margin %: 7.01% (92% above median its 10-year median of 3.66)
GF Value™: 円973.97 vs. price of 円580.00 (40.4% below fair value)
Industry Position: 80% above the Software median (#1326 of 2820)
No single metric tells the full story. See the TSE:3967 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eltes Co Ltd provides consultation services based on digital risk technology for database risk and other large storage protection in Japan. It also offers internal fraud detection services that enable the prevention of information security breaches caused by internal factors; and a service that includes detection and diagnosis of security breaches caused by external factors.
64GF Score
Get the complete analysis for TSE:3967
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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