Operating Margin % is calculated as Operating Income divided by its Revenue. User Local's Operating Income for the
three
months ended in Dec. 2025 was 円0 Mil. User Local's Revenue for the
three
months ended in Dec. 2025 was 円0 Mil. Therefore, User Local's Operating Margin % for the quarter that ended in Dec. 2025 was 0.00%.
Good Sign:
User Local Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for User Local's Operating Margin % or its related term are showing as below:
TSE:3984'
s Operating Margin % Range Over the Past 10 Years
Min: 38.18 Med: 41.45 Max: 44.45
Current: 44.45
TSE:3984's Operating Margin % is ranked better than 98.48% of 2822
companies
in the Software industry
Industry Median: 3.885
vs TSE:3984: 44.45
User Local's 5-Year Average Operating Margin % Growth Rate was 1.60% per year.
User Local's Operating Income for the
three
months ended in Dec. 2025 was 円0 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円1,924 Mil.
User Local (TSE:3984) 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.
User Local Operating Margin % Related Terms
User Local Operating Margin % Historical Data
* Premium members only.
The historical data trend for User Local'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:3984 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, User Local'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.
User Local Operating Margin % vs Software Industry
For the Software industry and Technology sector, User Local's Operating Margin % distribution charts can be found below:
* The bar in red indicates where User Local'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.
User Local's Operating Margin % for the fiscal year that ended in Jun. 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.
User Local (TSE:3984) has a Operating Margin % of 0.00% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on User Local and its competitors. Over the past decade, User Local's Operating Margin % has ranged from 38.18 to 44.45. According to the industry distribution chart, User Local ranks #43 out of 2822 companies in the Software industry, placing it in the top 1.5%.
Is User Local's Operating Margin % too high?
User Local's current Operating Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 38.18 to a high of 44.45. Based on the distribution chart, User Local ranks #43 out of 2822 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, User Local has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does User Local's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, User Local ranks #43 out of 2822 companies for Operating Margin %. This places User Local in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.89. Historically, User Local's own Operating Margin % has ranged from 38.18 to 44.45 over the past decade. 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. 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 User Local 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. User Local's current Operating Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is User Local stock overvalued right now?
Based on GuruFocus' analysis, User Local (TSE:3984) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,110.96, compared to a current price of 円1,784.00 — trading 15.5% below its estimated fair value. The current Operating Margin % is 0.00%. User Local's overall GF Score™ is 97/100 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 User Local (TSE:3984), the current Operating Margin % is 0.00% 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 User Local (TSE:3984) Overvalued in 2026?
Based on GuruFocus' analysis, User Local stock appears to be undervalued.
The current stock price of 円1,784.00 is trading 15.5% below its estimated GF Value™ of 円2,110.96.
GuruFocus considers User Local to be Modestly Undervalued.
Key valuation signals for TSE:3984:
Operating Margin %: 0.00%
GF Value™: 円2,110.96 vs. price of 円1,784.00 (15.5% below fair value)
No single metric tells the full story. See the TSE:3984 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
User Local Inc is engaged in the research and development of big data analysis system, web marketing support tool, offering media analysis tool, and managing artificial intelligence chat bot.
97GF Score
Get the complete analysis for TSE:3984
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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