PKSHA TechnologyTSE:3993 -0.15%82 Operating Margin % is 17.57% as of Mar. 2026, which is 8% below its 10-year median of 19.00. GuruFocus rates TSE:3993 with a GF Score™ of 82/100 and a GF Value™ of 円6,678.63 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,820 Software companies, PKSHA Technology ranks better than 83.9% 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.
PKSHA Technology Operating Margin % Related Terms
PKSHA Technology Operating Margin % Historical Data
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The historical data trend for PKSHA Technology'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:3993 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, PKSHA Technology'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.
PKSHA Technology Operating Margin % vs Software Industry
For the Software industry and Technology sector, PKSHA Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PKSHA Technology'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.
PKSHA Technology's Operating Margin % for the fiscal year that ended in Sep. 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.
PKSHA Technology (TSE:3993) has a Operating Margin % of 17.57% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PKSHA Technology and its competitors. This is near median its historical median of 19.00. Over the past decade, PKSHA Technology's Operating Margin % has ranged from 5.54 to 42.31. According to the industry distribution chart, PKSHA Technology ranks #454 out of 2820 companies in the Software industry, placing it in the top 16.1%.
Is PKSHA Technology's Operating Margin % too high?
PKSHA Technology's current Operating Margin % of 17.57% is near median its 10-year median of 19.00. Over the past 10 years, this metric has ranged from a low of 5.54 to a high of 42.31. The Software industry median Operating Margin % is 3.87. PKSHA Technology's value of 17.57% is 354.6% above this industry median. Based on the distribution chart, PKSHA Technology ranks #454 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, PKSHA Technology has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PKSHA Technology's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, PKSHA Technology ranks #454 out of 2820 companies for Operating Margin %. This places PKSHA Technology in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. PKSHA Technology's value of 17.57% is 354.6% above this benchmark. Historically, PKSHA Technology's own Operating Margin % has ranged from 5.54 to 42.31 over the past decade. While the company's 10-year median is 19.00 vs. the industry median of 3.87, PKSHA Technology 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. PKSHA Technology's current Operating Margin % of 17.57% is 354.6% 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 PKSHA Technology 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. PKSHA Technology's current Operating Margin % is 17.57%, which is near median its own 10-year median of 19.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PKSHA Technology stock overvalued right now?
Based on GuruFocus' analysis, PKSHA Technology (TSE:3993) is currently considered Possible Value Trap. The stock's GF Value™ is 円6,678.63, compared to a current price of 円2,622.00 — trading 60.7% below its estimated fair value. The current Operating Margin % is 17.57%, which is near median its 10-year median of 19.00 and 354.6% above the Software industry median of 3.87. PKSHA Technology's overall GF Score™ is 82/100 with 3 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 PKSHA Technology (TSE:3993), the current Operating Margin % is 17.57% 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 PKSHA Technology (TSE:3993) Overvalued in 2026?
Based on GuruFocus' analysis, PKSHA Technology stock appears to be undervalued.
The current stock price of 円2,622.00 is trading 60.7% below its estimated GF Value™ of 円6,678.63.
GuruFocus considers PKSHA Technology to be Possible Value Trap.
Key valuation signals for TSE:3993:
Operating Margin %: 17.57% (near median its 10-year median of 19.00)
GF Value™: 円6,678.63 vs. price of 円2,622.00 (60.7% below fair value)
Industry Position: 354.6% above the Software median (#454 of 2820)
No single metric tells the full story. See the TSE:3993 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PKSHA Technology Inc develops algorithm solutions mainly related to natural language processing, image recognition, machine learning / deep learning technology. These algorithm modules are integrated and operate on a variety of software and hardware. The group operates in two segments: AI Research & Solution Business and AI SaaS Business.
82GF Score
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