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MIT Holdings Co (TSE:4016) 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.
MIT Holdings Co Operating Margin % Related Terms
MIT Holdings Co Operating Margin % Historical Data
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The historical data trend for MIT Holdings 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:4016 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, MIT Holdings 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.
MIT Holdings Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, MIT Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MIT Holdings 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.
MIT Holdings Co's Operating Margin % for the fiscal year that ended in Nov. 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.
MIT Holdings Co (TSE:4016) has a Operating Margin % of -1.95% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on MIT Holdings Co and its competitors. Over the past decade, MIT Holdings Co's Operating Margin % has ranged from 1.54 to 3.77. According to the industry distribution chart, MIT Holdings Co ranks #1509 out of 2822 companies in the Software industry, placing it in the top 53.5%.
Is MIT Holdings Co's Operating Margin % too high?
MIT Holdings Co's current Operating Margin % is -1.95%. Over the past 10 years, this metric has ranged from a low of 1.54 to a high of 3.77. Based on the distribution chart, MIT Holdings Co ranks #1509 out of 2822 companies in the Software industry, which is below the industry midpoint. Overall, MIT Holdings Co has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MIT Holdings Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, MIT Holdings Co ranks #1509 out of 2822 companies for Operating Margin %. This places MIT Holdings Co in the lower half of its industry. The industry median Operating Margin % is 3.89. Historically, MIT Holdings Co's own Operating Margin % has ranged from 1.54 to 3.77 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 MIT Holdings 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. MIT Holdings Co's current Operating Margin % is -1.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MIT Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, MIT Holdings Co (TSE:4016) is currently considered Modestly Overvalued. The stock's GF Value™ is 円794.84, compared to a current price of 円921.00 — trading 15.9% above its estimated fair value. The current Operating Margin % is -1.95%. MIT Holdings Co's overall GF Score™ is 73/100 with 2 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 MIT Holdings Co (TSE:4016), the current Operating Margin % is -1.95% as of Nov. 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 MIT Holdings Co (TSE:4016) Overvalued in 2026?
Based on GuruFocus' analysis, MIT Holdings Co stock appears to be overvalued.
The current stock price of 円921.00 is trading 15.9% above its estimated GF Value™ of 円794.84.
GuruFocus considers MIT Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:4016:
Operating Margin %: -1.95%
GF Value™: 円794.84 vs. price of 円921.00 (15.9% above fair value)
No single metric tells the full story. See the TSE:4016 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MIT Holdings Co Ltd is engaged in developing an information service business based on IT technology. The company's services include system integration services such as development, operation, and maintenance, infrastructure construction, and solution services such as digital books, CAD, and face recognition.
73GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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