CNS CoTSE:4076 +1.81%85 Operating Margin % is 8.96% as of Nov. 2025, which is 4% below its 10-year median of 9.33. GuruFocus rates TSE:4076 with a GF Score™ of 85/100 and a GF Value™ of 円1,971.09 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,810 Software companies, CNS Co ranks better than 67.08% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. CNS Co's Operating Income for the
three
months ended in Nov. 2025 was 円168 Mil. CNS Co's Revenue for the
three
months ended in Nov. 2025 was 円1,879 Mil. Therefore, CNS Co's Operating Margin % for the quarter that ended in Nov. 2025 was 8.96%.
Warning Sign:
CNS Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for CNS Co's Operating Margin % or its related term are showing as below:
TSE:4076'
s Operating Margin % Range Over the Past 10 Years
Min: 3.16 Med: 9.33 Max: 9.84
Current: 9.04
TSE:4076's Operating Margin % is ranked better than 67.08% of 2810
companies
in the Software industry
Industry Median: 3.87
vs TSE:4076: 9.04
CNS Co's 5-Year Average Operating Margin % Growth Rate was -2.90% per year.
CNS Co's Operating Income for the
three
months ended in Nov. 2025 was 円168 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2025 was 円681 Mil.
CNS Co (TSE:4076) 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.
CNS Co Operating Margin % Related Terms
CNS Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for CNS 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:4076 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, CNS 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.
CNS Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, CNS Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CNS 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.
CNS Co's Operating Margin % for the fiscal year that ended in May. 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.
CNS Co (TSE:4076) has a Operating Margin % of 8.96% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on CNS Co and its competitors. This is near median its historical median of 9.33. Over the past decade, CNS Co's Operating Margin % has ranged from 3.16 to 9.84. According to the industry distribution chart, CNS Co ranks #925 out of 2810 companies in the Software industry, placing it in the top 32.9%.
Is CNS Co's Operating Margin % too high?
CNS Co's current Operating Margin % of 8.96% is near median its 10-year median of 9.33. Over the past 10 years, this metric has ranged from a low of 3.16 to a high of 9.84. The Software industry median Operating Margin % is 3.87. CNS Co's value of 8.96% is 131.5% above this industry median. Based on the distribution chart, CNS Co ranks #925 out of 2810 companies in the Software industry, which is above the industry midpoint. Overall, CNS Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CNS Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, CNS Co ranks #925 out of 2810 companies for Operating Margin %. This puts CNS Co in the upper half of its industry. The industry median Operating Margin % is 3.87. CNS Co's value of 8.96% is 131.5% above this benchmark. Historically, CNS Co's own Operating Margin % has ranged from 3.16 to 9.84 over the past decade. While the company's 10-year median is 9.33 vs. the industry median of 3.87, CNS 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 3.87, based on 2,810 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. CNS Co's current Operating Margin % of 8.96% is 131.5% 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 CNS Co 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. CNS Co's current Operating Margin % is 8.96%, which is near median its own 10-year median of 9.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CNS Co stock overvalued right now?
Based on GuruFocus' analysis, CNS Co (TSE:4076) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,971.09, compared to a current price of 円1,741.00 — trading 11.7% below its estimated fair value. The current Operating Margin % is 8.96%, which is near median its 10-year median of 9.33 and 131.5% above the Software industry median of 3.87. CNS Co's overall GF Score™ is 85/100 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 CNS Co (TSE:4076), the current Operating Margin % is 8.96% 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 CNS Co (TSE:4076) Overvalued in 2026?
Based on GuruFocus' analysis, CNS Co stock appears to be undervalued.
The current stock price of 円1,741.00 is trading 11.7% below its estimated GF Value™ of 円1,971.09.
GuruFocus considers CNS Co to be Modestly Undervalued.
Key valuation signals for TSE:4076:
Operating Margin %: 8.96% (near median its 10-year median of 9.33)
GF Value™: 円1,971.09 vs. price of 円1,741.00 (11.7% below fair value)
Industry Position: 131.5% above the Software median (#925 of 2810)
No single metric tells the full story. See the TSE:4076 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CNS Co Ltd is an information technology solutions company engaged in providing system engineering services. The company offers various solutions to its clients such as consulting services related to digital transformation, data analysis solutions, business system integration, and the implementation, construction, and operation of optimal system infrastructure.
85GF 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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