Focus SystemsTSE:4662 +0.19%85 Operating Margin % is 7.96% as of Dec. 2025, which is 27% above its 10-year median of 6.28. GuruFocus rates TSE:4662 with a GF Score™ of 85/100 and a GF Value™ of 円1,323.90 (Modestly Overvalued). Among 2,820 Software companies, Focus Systems ranks better than 65.74% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Focus Systems's Operating Income for the
three
months ended in Dec. 2025 was 円726 Mil. Focus Systems's Revenue for the
three
months ended in Dec. 2025 was 円9,119 Mil. Therefore, Focus Systems's Operating Margin % for the quarter that ended in Dec. 2025 was 7.96%.
Good Sign:
Focus Systems Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Focus Systems's Operating Margin % or its related term are showing as below:
TSE:4662'
s Operating Margin % Range Over the Past 10 Years
Min: 4.17 Med: 6.28 Max: 8.51
Current: 8.51
TSE:4662's Operating Margin % is ranked better than 65.74% of 2820
companies
in the Software industry
Industry Median: 3.865
vs TSE:4662: 8.51
Focus Systems's 5-Year Average Operating Margin % Growth Rate was 5.20% per year.
Focus Systems (TSE:4662) 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.
Focus Systems Operating Margin % Related Terms
Focus Systems Operating Margin % Historical Data
* Premium members only.
The historical data trend for Focus Systems'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:4662 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Focus Systems'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.
Focus Systems Operating Margin % vs Software Industry
For the Software industry and Technology sector, Focus Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Focus Systems'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.
Focus Systems'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.
Focus Systems (TSE:4662) has a Operating Margin % of 7.96% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Focus Systems and its competitors. This is 27% above median its historical median of 6.28. Over the past decade, Focus Systems' Operating Margin % has ranged from 4.17 to 8.51. According to the industry distribution chart, Focus Systems ranks #966 out of 2820 companies in the Software industry, placing it in the top 34.3%.
Is Focus Systems' Operating Margin % too high?
Focus Systems' current Operating Margin % of 7.96% is 27% above median its 10-year median of 6.28. Over the past 10 years, this metric has ranged from a low of 4.17 to a high of 8.51. The Software industry median Operating Margin % is 3.87. Focus Systems' value of 7.96% is 106% above this industry median. Based on the distribution chart, Focus Systems ranks #966 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Focus Systems has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Focus Systems' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Focus Systems ranks #966 out of 2820 companies for Operating Margin %. This puts Focus Systems in the upper half of its industry. The industry median Operating Margin % is 3.87. Focus Systems' value of 7.96% is 106% above this benchmark. Historically, Focus Systems' own Operating Margin % has ranged from 4.17 to 8.51 over the past decade. While the company's 10-year median is 6.28 vs. the industry median of 3.87, Focus Systems 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. Focus Systems's current Operating Margin % of 7.96% is 106% 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 Focus Systems 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. Focus Systems's current Operating Margin % is 7.96%, which is 27% above median its own 10-year median of 6.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Focus Systems stock overvalued right now?
Based on GuruFocus' analysis, Focus Systems (TSE:4662) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,323.90, compared to a current price of 円1,610.00 — trading 21.6% above its estimated fair value. The current Operating Margin % is 7.96%, which is 27% above median its 10-year median of 6.28 and 106% above the Software industry median of 3.87. Focus Systems' overall GF Score™ is 85/100. 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 Focus Systems (TSE:4662), the current Operating Margin % is 7.96% as of Dec. 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 Focus Systems (TSE:4662) Overvalued in 2026?
Based on GuruFocus' analysis, Focus Systems stock appears to be overvalued.
The current stock price of 円1,610.00 is trading 21.6% above its estimated GF Value™ of 円1,323.90.
GuruFocus considers Focus Systems to be Modestly Overvalued.
Key valuation signals for TSE:4662:
Operating Margin %: 7.96% (27% above median its 10-year median of 6.28)
GF Value™: 円1,323.90 vs. price of 円1,610.00 (21.6% above fair value)
Industry Position: 106% above the Software median (#966 of 2820)
No single metric tells the full story. See the TSE:4662 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Focus Systems Corp is a Japan-based company operating in the Information technology (IT) industry. Its business activities are divided into three divisions including System integration, IT service and Information Security. The company has established an integrated system including information system consulting, development, operation, and maintenance. It also provides security products incorporating security functions in customer systems, survey, and analysis in digital forensics.
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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