Segue Group CoTSE:3968 +2.04%83 Operating Margin % is 7.76% as of Dec. 2025, which is 38% above its 10-year median of 5.61. GuruFocus rates TSE:3968 with a GF Score™ of 83/100 and a GF Value™ of 円800.03 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,822 Software companies, Segue Group Co ranks better than 61.8% on this metric.
Segue Group Co (TSE:3968) 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.
Segue Group Co Operating Margin % Related Terms
Segue Group Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Segue Group 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:3968 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Segue Group 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.
Segue Group Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Segue Group Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Segue Group 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.
Segue Group Co's Operating Margin % for the fiscal year that ended in Dec. 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.
Segue Group Co (TSE:3968) has a Operating Margin % of 7.76% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Segue Group Co and its competitors. This is 38% above median its historical median of 5.61. Over the past decade, Segue Group Co's Operating Margin % has ranged from 3.17 to 7.67. According to the industry distribution chart, Segue Group Co ranks #1078 out of 2822 companies in the Software industry, placing it in the top 38.2%.
Is Segue Group Co's Operating Margin % too high?
Segue Group Co's current Operating Margin % of 7.76% is 38% above median its 10-year median of 5.61. Over the past 10 years, this metric has ranged from a low of 3.17 to a high of 7.67. The Software industry median Operating Margin % is 3.89. Segue Group Co's value of 7.76% is 99.7% above this industry median. Based on the distribution chart, Segue Group Co ranks #1078 out of 2822 companies in the Software industry, which is above the industry midpoint. Overall, Segue Group Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Segue Group Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Segue Group Co ranks #1078 out of 2822 companies for Operating Margin %. This puts Segue Group Co in the upper half of its industry. The industry median Operating Margin % is 3.89. Segue Group Co's value of 7.76% is 99.7% above this benchmark. Historically, Segue Group Co's own Operating Margin % has ranged from 3.17 to 7.67 over the past decade. While the company's 10-year median is 5.61 vs. the industry median of 3.89, Segue Group 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 3.89, based on 2,822 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. Segue Group Co's current Operating Margin % of 7.76% is 99.7% 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 Segue Group Co and its competitors. For the Software industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Segue Group Co's current Operating Margin % is 7.76%, which is 38% above median its own 10-year median of 5.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Segue Group Co stock overvalued right now?
Based on GuruFocus' analysis, Segue Group Co (TSE:3968) is currently considered Modestly Undervalued. The stock's GF Value™ is 円800.03, compared to a current price of 円599.00 — trading 25.1% below its estimated fair value. The current Operating Margin % is 7.76%, which is 38% above median its 10-year median of 5.61 and 99.7% above the Software industry median of 3.89. Segue Group Co's overall GF Score™ is 83/100 with 4 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 Segue Group Co (TSE:3968), the current Operating Margin % is 7.76% as of Dec. 2025. 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 Segue Group Co (TSE:3968) Overvalued in 2026?
Based on GuruFocus' analysis, Segue Group Co stock appears to be undervalued.
The current stock price of 円599.00 is trading 25.1% below its estimated GF Value™ of 円800.03.
GuruFocus considers Segue Group Co to be Modestly Undervalued.
Key valuation signals for TSE:3968:
Operating Margin %: 7.76% (38% above median its 10-year median of 5.61)
GF Value™: 円800.03 vs. price of 円599.00 (25.1% below fair value)
Industry Position: 99.7% above the Software median (#1078 of 2822)
No single metric tells the full story. See the TSE:3968 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Segue Group Co Ltd provides information technology services. The company offers networking, security, operations, cloud, and maintenance solutions. It provides various services, including system integration, VoIP system implementation, construction, human resources, help desk support, monitoring, and maintenance support.
83GF Score
Get the complete analysis for TSE:3968
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:3968 has been successfully added to your 
