Simplex HoldingsTSE:4373 -0.55%91 Operating Margin % is 22.32% as of Mar. 2026, which is 5% above its 10-year median of 21.32. GuruFocus rates TSE:4373 with a GF Score™ of 91/100 and a GF Value™ of 円1,071.34 (Modestly Undervalued). Among 2,820 Software companies, Simplex Holdings ranks better than 91.74% on this metric.
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.
Simplex Holdings Operating Margin % Related Terms
Simplex Holdings Operating Margin % Historical Data
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The historical data trend for Simplex Holdings'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:4373 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Simplex Holdings'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.
Simplex Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, Simplex Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Simplex Holdings'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.
Simplex Holdings's Operating Margin % for the fiscal year that ended in Mar. 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.
Simplex Holdings (TSE:4373) has a Operating Margin % of 22.32% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Simplex Holdings and its competitors. This is near median its historical median of 21.32. Over the past decade, Simplex Holdings' Operating Margin % has ranged from 4.80 to 24.58. According to the industry distribution chart, Simplex Holdings ranks #233 out of 2820 companies in the Software industry, placing it in the top 8.3%.
Is Simplex Holdings' Operating Margin % too high?
Simplex Holdings' current Operating Margin % of 22.32% is near median its 10-year median of 21.32. Over the past 10 years, this metric has ranged from a low of 4.80 to a high of 24.58. The Software industry median Operating Margin % is 3.87. Simplex Holdings' value of 22.32% is 477.5% above this industry median. Based on the distribution chart, Simplex Holdings ranks #233 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Simplex Holdings has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Simplex Holdings' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Simplex Holdings ranks #233 out of 2820 companies for Operating Margin %. This places Simplex Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Simplex Holdings' value of 22.32% is 477.5% above this benchmark. Historically, Simplex Holdings' own Operating Margin % has ranged from 4.80 to 24.58 over the past decade. While the company's 10-year median is 21.32 vs. the industry median of 3.87, Simplex Holdings 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 2,820 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. Simplex Holdings's current Operating Margin % of 22.32% is 477.5% 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 Simplex Holdings 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. Simplex Holdings's current Operating Margin % is 22.32%, which is near median its own 10-year median of 21.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simplex Holdings stock overvalued right now?
Based on GuruFocus' analysis, Simplex Holdings (TSE:4373) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,071.34, compared to a current price of 円911.00 — trading 15% below its estimated fair value. The current Operating Margin % is 22.32%, which is near median its 10-year median of 21.32 and 477.5% above the Software industry median of 3.87. Simplex Holdings' overall GF Score™ is 91/100. 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 Simplex Holdings (TSE:4373), the current Operating Margin % is 22.32% as of Mar. 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 Simplex Holdings (TSE:4373) Overvalued in 2026?
Based on GuruFocus' analysis, Simplex Holdings stock appears to be undervalued.
The current stock price of 円911.00 is trading 15% below its estimated GF Value™ of 円1,071.34.
GuruFocus considers Simplex Holdings to be Modestly Undervalued.
Key valuation signals for TSE:4373:
Operating Margin %: 22.32% (near median its 10-year median of 21.32)
GF Value™: 円1,071.34 vs. price of 円911.00 (15% below fair value)
Industry Position: 477.5% above the Software median (#233 of 2820)
No single metric tells the full story. See the TSE:4373 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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