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Trade Works CoTSE:3997 -0.77%75 Operating Margin % is 1.73% as of Jun. 2026, which is 78% below its 10-year median of 8.00. GuruFocus rates TSE:3997 with a GF Score™ of 75/100 and a GF Value™ of 円138.09 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,819 Software companies, Trade Works Co ranks better than 57.79% on this metric.
Trade Works Co (TSE:3997) 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.
Trade Works Co Operating Margin % Related Terms
Trade Works Co Operating Margin % Historical Data
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The historical data trend for Trade Works 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:3997 vs IBM, ACN, CTSH: Operating Margin % Comparison
For the Information Technology Services subindustry, Trade Works 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.
Trade Works Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Trade Works Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Trade Works 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.
Trade Works 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.
Trade Works Co (TSE:3997) has a Operating Margin % of 1.73% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Trade Works Co and its competitors. This is 78% below median its historical median of 8.00. According to the industry distribution chart, Trade Works Co ranks #1190 out of 2819 companies in the Software industry, placing it in the top 42.2%.
Is Trade Works Co's Operating Margin % too high?
Trade Works Co's current Operating Margin % of 1.73% is 78% below median its 10-year median of 8.00. The Software industry median Operating Margin % is 3.90. Trade Works Co's value of 1.73% is 55.6% below this industry median. Based on the distribution chart, Trade Works Co ranks #1190 out of 2819 companies in the Software industry, which is above the industry midpoint. Overall, Trade Works Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Trade Works Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Trade Works Co ranks #1190 out of 2819 companies for Operating Margin %. This puts Trade Works Co in the upper half of its industry. The industry median Operating Margin % is 3.90. Trade Works Co's value of 1.73% is 55.6% below this benchmark. While the company's 10-year median is 8.00 vs. the industry median of 3.90, Trade Works Co has consistently been below 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 2,819 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. Trade Works Co's current Operating Margin % of 1.73% is 55.6% below 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 Trade Works 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. Trade Works Co's current Operating Margin % is 1.73%, which is 78% below median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trade Works Co stock overvalued right now?
Based on GuruFocus' analysis, Trade Works Co (TSE:3997) is currently considered Significantly Overvalued. The stock's GF Value™ is 円138.09, compared to a current price of 円387.00 — trading 180.3% above its estimated fair value. The current Operating Margin % is 1.73%, which is 78% below median its 10-year median of 8.00 and 55.6% below the Software industry median of 3.90. Trade Works Co's overall GF Score™ is 75/100 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 Trade Works Co (TSE:3997), the current Operating Margin % is 1.73% as of Jun. 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 Trade Works Co (TSE:3997) Overvalued in 2026?
Based on GuruFocus' analysis, Trade Works Co stock appears to be overvalued.
The current stock price of 円387.00 is trading 180.3% above its estimated GF Value™ of 円138.09.
GuruFocus considers Trade Works Co to be Significantly Overvalued.
Key valuation signals for TSE:3997:
Operating Margin %: 1.73% (78% below median its 10-year median of 8.00)
GF Value™: 円138.09 vs. price of 円387.00 (180.3% above fair value)
Industry Position: 55.6% below the Software median (#1190 of 2819)
No single metric tells the full story. See the TSE:3997 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trade Works Co Ltd is engaged in providing information technology solutions for customers in the securities, foreign exchange, and commodity markets. It offers services such as software development, system operation; data center service specialized in the financial capital market. Its product portfolio includes online trade TradeAgent, Deering Athena, exchange trading terminal Mars, exchange trading terminal Mars web, unfair trade monitoring MTS, security diagnostic services.
75GF Score
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