Tenda Co (TSE:4198) Operating Margin %: 8.23% (As of Feb. 2026) — 22% Below Median

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TSE:4198 Tenda Co Ltd TSE:4198
78 GF Score
Price 円492.00
GF Value 円895.12
Valuation Significantly Undervalued
! 4 Warning Signs
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What is Tenda Co Operating Margin %?

Tenda Co TSE:4198 -1.40% 78 Operating Margin % is 8.23% as of Feb. 2026, which is 22% below its 10-year median of 10.55. GuruFocus rates TSE:4198 with a GF Score™ of 78/100 and a GF Value™ of 円895.12 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,822 Software companies, Tenda Co ranks worse than 51.06% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tenda Co's Operating Income for the three months ended in Feb. 2026 was 円110 Mil. Tenda Co's Revenue for the three months ended in Feb. 2026 was 円1,338 Mil. Therefore, Tenda Co's Operating Margin % for the quarter that ended in Feb. 2026 was 8.23%.

Warning Sign:

Tenda Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.2%.

The historical rank and industry rank for Tenda Co's Operating Margin % or its related term are showing as below:

TSE:4198' s Operating Margin % Range Over the Past 10 Years
Min: 3.58   Med: 10.55   Max: 11.46
Current: 3.58


TSE:4198's Operating Margin % is ranked worse than
51.06% of 2822 companies
in the Software industry
Industry Median: 3.885 vs TSE:4198: 3.58

Tenda Co's 5-Year Average Operating Margin % Growth Rate was -3.20% per year.

Tenda Co's Operating Income for the three months ended in Feb. 2026 was 円110 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円166 Mil.


Tenda Co  (TSE:4198) 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 Nokia’s 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.


Tenda Co Operating Margin % Related Terms


Tenda Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Tenda 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.

Tenda Co Operating Margin % Chart

Tenda Co Annual Data
Trend May19 May20 May21 May22 May23 May24 May25 May26
Operating Margin %
Get a 7-Day Free Trial 10.63 10.75 10.55 7.68 3.23

Tenda Co Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.27 0.70 0.69 8.23 2.95

TSE:4198 vs IBM, ACN, FISV: Operating Margin % Comparison

For the Information Technology Services subindustry, Tenda 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.


Tenda Co Operating Margin % vs Software Industry

For the Software industry and Technology sector, Tenda Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Tenda Co's Operating Margin % falls into.


TSE:4198
78GF Score
Tenda Co Ltd TSE:4198
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tenda Co Operating Margin % Calculation

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.

Tenda Co's Operating Margin % for the fiscal year that ended in May. 2026 is calculated as

Operating Margin %=Operating Income (A: May. 2026 ) / Revenue (A: May. 2026 )
=165.826 / 5131.278
=3.23 %

Tenda Co's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2026 ) / Revenue (Q: Feb. 2026 )
=110.086 / 1337.915
=8.23 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 8.23% mean?
Tenda Co (TSE:4198) has a Operating Margin % of 8.23% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tenda Co and its competitors. This is 22% below median its historical median of 10.55. Over the past decade, Tenda Co's Operating Margin % has ranged from 3.58 to 11.46. According to the industry distribution chart, Tenda Co ranks #1441 out of 2822 companies in the Software industry, placing it in the top 51.1%.
Is Tenda Co's Operating Margin % too high?
Tenda Co's current Operating Margin % of 8.23% is 22% below median its 10-year median of 10.55. Over the past 10 years, this metric has ranged from a low of 3.58 to a high of 11.46. The Software industry median Operating Margin % is 3.89. Tenda Co's value of 8.23% is 111.8% above this industry median. Based on the distribution chart, Tenda Co ranks #1441 out of 2822 companies in the Software industry, which is below the industry midpoint. Overall, Tenda Co has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tenda Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Tenda Co ranks #1441 out of 2822 companies for Operating Margin %. This places Tenda Co in the lower half of its industry. The industry median Operating Margin % is 3.89. Tenda Co's value of 8.23% is 111.8% above this benchmark. Historically, Tenda Co's own Operating Margin % has ranged from 3.58 to 11.46 over the past decade. While the company's 10-year median is 10.55 vs. the industry median of 3.89, Tenda 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 3.89, 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. Tenda Co's current Operating Margin % of 8.23% is 111.8% 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 Tenda 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. Tenda Co's current Operating Margin % is 8.23%, which is 22% below median its own 10-year median of 10.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tenda Co stock overvalued right now?
Based on GuruFocus' analysis, Tenda Co (TSE:4198) is currently considered Significantly Undervalued. The stock's GF Value™ is 円895.12, compared to a current price of 円492.00 — trading 45% below its estimated fair value. The current Operating Margin % is 8.23%, which is 22% below median its 10-year median of 10.55 and 111.8% above the Software industry median of 3.89. Tenda Co's overall GF Score™ is 78/100 with 4 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 Tenda Co (TSE:4198), the current Operating Margin % is 8.23% as of Feb. 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 Tenda Co (TSE:4198) Overvalued in 2026?

Based on GuruFocus' analysis, Tenda Co stock appears to be undervalued. The current stock price of 円492.00 is trading 45% below its estimated GF Value™ of 円895.12. GuruFocus considers Tenda Co to be Significantly Undervalued.

Key valuation signals for TSE:4198:

  • Operating Margin %: 8.23% (22% below median its 10-year median of 10.55)
  • GF Value™: 円895.12 vs. price of 円492.00 (45% below fair value)
  • GF Score™: 78/100 with 4 warning signs
  • Industry Position: 111.8% above the Software median (#1441 of 2822)

No single metric tells the full story. See the TSE:4198 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tenda Co Business Description

Address 1-11-1 Nishi-Ikebukuro, WeWork Metropolitan Plaza Building, Toshima-ku, Tokyo, JPN, 171-0021
Tenda Co Ltd is engaged in the development, maintenance, and operation of web systems and related websites, applications, through contract work, as well as the provision of business products, and the planning, development, operation, and maintenance of game content.
78GF Score

Get the complete analysis for TSE:4198

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円492.00
Price
円895.12
GF Value