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Tokai Soft CoTSE:4430 -0.30%85 Operating Margin % is 13.35% as of Feb. 2026, which is 59% above its 10-year median of 8.40. GuruFocus rates TSE:4430 with a GF Score™ of 85/100 and a GF Value™ of 円1,975.09 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,825 Software companies, Tokai Soft Co ranks better than 71.86% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Tokai Soft Co's Operating Income for the
three
months ended in Feb. 2026 was 円404 Mil. Tokai Soft Co's Revenue for the
three
months ended in Feb. 2026 was 円3,026 Mil. Therefore, Tokai Soft Co's Operating Margin % for the quarter that ended in Feb. 2026 was 13.35%.
Good Sign:
Tokai Soft Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Tokai Soft Co's Operating Margin % or its related term are showing as below:
TSE:4430'
s Operating Margin % Range Over the Past 10 Years
Min: 4 Med: 8.4 Max: 11.5
Current: 10.92
TSE:4430's Operating Margin % is ranked better than 71.86% of 2825
companies
in the Software industry
Industry Median: 3.9
vs TSE:4430: 10.92
Tokai Soft Co's 5-Year Average Operating Margin % Growth Rate was 8.30% per year.
Tokai Soft Co (TSE:4430) 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.
Tokai Soft Co Operating Margin % Related Terms
Tokai Soft Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Tokai Soft 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:4430 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Tokai Soft 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.
Tokai Soft Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Tokai Soft Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Soft 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.
Tokai Soft Co's Operating Margin % for the fiscal year that ended in May. 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.
Tokai Soft Co (TSE:4430) has a Operating Margin % of 13.35% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tokai Soft Co and its competitors. This is 59% above median its historical median of 8.40. Over the past decade, Tokai Soft Co's Operating Margin % has ranged from 4.00 to 11.50. According to the industry distribution chart, Tokai Soft Co ranks #795 out of 2825 companies in the Software industry, placing it in the top 28.1%.
Is Tokai Soft Co's Operating Margin % too high?
Tokai Soft Co's current Operating Margin % of 13.35% is 59% above median its 10-year median of 8.40. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 11.50. The Software industry median Operating Margin % is 3.90. Tokai Soft Co's value of 13.35% is 242.3% above this industry median. Based on the distribution chart, Tokai Soft Co ranks #795 out of 2825 companies in the Software industry, which is above the industry midpoint. Overall, Tokai Soft 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 Tokai Soft Co's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Tokai Soft Co ranks #795 out of 2825 companies for Operating Margin %. This puts Tokai Soft Co in the upper half of its industry. The industry median Operating Margin % is 3.90. Tokai Soft Co's value of 13.35% is 242.3% above this benchmark. Historically, Tokai Soft Co's own Operating Margin % has ranged from 4.00 to 11.50 over the past decade. While the company's 10-year median is 8.40 vs. the industry median of 3.90, Tokai Soft 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 3.90, based on 2,825 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. Tokai Soft Co's current Operating Margin % of 13.35% is 242.3% 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 Tokai Soft Co and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Soft Co's current Operating Margin % is 13.35%, which is 59% above median its own 10-year median of 8.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Soft Co stock overvalued right now?
Based on GuruFocus' analysis, Tokai Soft Co (TSE:4430) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,975.09, compared to a current price of 円1,655.00 — trading 16.2% below its estimated fair value. The current Operating Margin % is 13.35%, which is 59% above median its 10-year median of 8.40 and 242.3% above the Software industry median of 3.90. Tokai Soft 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 Tokai Soft Co (TSE:4430), the current Operating Margin % is 13.35% 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 Tokai Soft Co (TSE:4430) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Soft Co stock appears to be undervalued.
The current stock price of 円1,655.00 is trading 16.2% below its estimated GF Value™ of 円1,975.09.
GuruFocus considers Tokai Soft Co to be Modestly Undervalued.
Key valuation signals for TSE:4430:
Operating Margin %: 13.35% (59% above median its 10-year median of 8.40)
GF Value™: 円1,975.09 vs. price of 円1,655.00 (16.2% below fair value)
Industry Position: 242.3% above the Software median (#795 of 2825)
No single metric tells the full story. See the TSE:4430 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Soft Co Ltd provides software solutions. The company is engaged in a wide range of businesses as an engineering company that combines technologies for total system construction, network and solution solutions, and support technologies that provide stable operation.
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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