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RayTSE:4317 +1.65%79 Operating Margin % is 13.85% as of Feb. 2026, which is 62% above its 10-year median of 8.55. GuruFocus rates TSE:4317 with a GF Score™ of 79/100 and a GF Value™ of 円565.59 (Modestly Undervalued). Among 1,013 Media - Diversified companies, Ray ranks better than 80.16% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Ray's Operating Income for the
six
months ended in Feb. 2026 was 円1,049 Mil. Ray's Revenue for the
six
months ended in Feb. 2026 was 円7,574 Mil. Therefore, Ray's Operating Margin % for the quarter that ended in Feb. 2026 was 13.85%.
The historical rank and industry rank for Ray's Operating Margin % or its related term are showing as below:
TSE:4317'
s Operating Margin % Range Over the Past 10 Years
Min: -10.04 Med: 8.55 Max: 13.09
Current: 13.09
TSE:4317's Operating Margin % is ranked better than 80.16% of 1013
companies
in the Media - Diversified industry
Industry Median: 2.42
vs TSE:4317: 13.09
Ray's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Ray's Operating Income for the
six
months ended in Feb. 2026 was 円1,049 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円1,757 Mil.
Ray (TSE:4317) 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.
Ray Operating Margin % Related Terms
Ray Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ray'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:4317 vs NFLX, DIS, WBD: Operating Margin % Comparison
For the Entertainment subindustry, Ray'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.
Ray Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Ray's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ray'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.
Ray's Operating Margin % for the fiscal year that ended in Feb. 2026 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.
Ray (TSE:4317) has a Operating Margin % of 13.85% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ray and its competitors. This is 62% above median its historical median of 8.55. According to the industry distribution chart, Ray ranks #201 out of 1013 companies in the Media - Diversified industry, placing it in the top 19.8%.
Is Ray's Operating Margin % too high?
Ray's current Operating Margin % of 13.85% is 62% above median its 10-year median of 8.55. The Media - Diversified industry median Operating Margin % is 2.42. Ray's value of 13.85% is 472.3% above this industry median. Based on the distribution chart, Ray ranks #201 out of 1013 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Ray has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ray's Operating Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Ray ranks #201 out of 1013 companies for Operating Margin %. This places Ray in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.42. Ray's value of 13.85% is 472.3% above this benchmark. While the company's 10-year median is 8.55 vs. the industry median of 2.42, Ray 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.42, based on 1,013 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. Ray's current Operating Margin % of 13.85% is 472.3% 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 Ray and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ray's current Operating Margin % is 13.85%, which is 62% above median its own 10-year median of 8.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ray stock overvalued right now?
Based on GuruFocus' analysis, Ray (TSE:4317) is currently considered Modestly Undervalued. The stock's GF Value™ is 円565.59, compared to a current price of 円493.00 — trading 12.8% below its estimated fair value. The current Operating Margin % is 13.85%, which is 62% above median its 10-year median of 8.55 and 472.3% above the Media - Diversified industry median of 2.42. Ray's overall GF Score™ is 79/100. 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 Ray (TSE:4317), the current Operating Margin % is 13.85% 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 Ray (TSE:4317) Overvalued in 2026?
Based on GuruFocus' analysis, Ray stock appears to be undervalued.
The current stock price of 円493.00 is trading 12.8% below its estimated GF Value™ of 円565.59.
GuruFocus considers Ray to be Modestly Undervalued.
Key valuation signals for TSE:4317:
Operating Margin %: 13.85% (62% above median its 10-year median of 8.55)
GF Value™: 円565.59 vs. price of 円493.00 (12.8% below fair value)
Industry Position: 472.3% above the Media - Diversified median (#201 of 1013)
No single metric tells the full story. See the TSE:4317 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ray Corp is a Japan-based advertising company that operates in two business segments. The Advertising Solution segment has two divisions: the SP and event division, which handles planning and production of sales promotions, campaigns, expos, and showrooms; and the TVCM division, which creates TV commercials and promotional videos. The Technical Solution segment includes a video equipment rental division for events and business presentations, and a post-production division offering video editing, DVD/Blu-ray, and CG production services.
79GF 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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