Tokyo Individualized Educational Institute (TSE:4745) 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.
Tokyo Individualized Educational Institute Operating Margin % Related Terms
Tokyo Individualized Educational Institute Operating Margin % Historical Data
* 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.
Tokyo Individualized Educational Institute Operating Margin % Chart
Tokyo Individualized Educational Institute Annual Data
TSE:4745 vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, Tokyo Individualized Educational Institute'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.
Tokyo Individualized Educational Institute Operating Margin % vs Education Industry
Tokyo Individualized Educational Institute 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.
* 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.
Tokyo Individualized Educational Institute (TSE:4745) has a Operating Margin % of 3.29% as of Aug. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tokyo Individualized Educational Institute and its competitors. This is 72% below median its historical median of 11.77. Over the past decade, Tokyo Individualized Educational Institute's Operating Margin % has ranged from 3.20 to 13.74.
Is Tokyo Individualized Educational Institute's Operating Margin % too high?
Tokyo Individualized Educational Institute's current Operating Margin % of 3.29% is 72% below median its 10-year median of 11.77. Over the past 10 years, this metric has ranged from a low of 3.20 to a high of 13.74. The Education industry median Operating Margin % is 9.35. Tokyo Individualized Educational Institute's value of 3.29% is 64.8% below this industry median. Overall, Tokyo Individualized Educational Institute has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Tokyo Individualized Educational Institute's Operating Margin % compare to EDU and TAL?
Tokyo Individualized Educational Institute's Operating Margin % of 3.29% can be compared against companies in the Education industry. The industry median Operating Margin % is 9.35. Tokyo Individualized Educational Institute's value of 3.29% is 64.8% below this benchmark. Historically, Tokyo Individualized Educational Institute's own Operating Margin % has ranged from 3.20 to 13.74 over the past decade. While the company's 10-year median is 11.77 vs. the industry median of 9.35, Tokyo Individualized Educational Institute has consistently been below 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 an Education company?
The median Operating Margin % among Education companies is 9.35, based on 258 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. Tokyo Individualized Educational Institute's current Operating Margin % of 3.29% is 64.8% below 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 Tokyo Individualized Educational Institute and its competitors. For the Education industry, the median Operating Margin % is 9.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokyo Individualized Educational Institute's current Operating Margin % is 3.29%, which is 72% below median its own 10-year median of 11.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Individualized Educational Institute stock overvalued right now?
Tokyo Individualized Educational Institute (TSE:4745) has a current Operating Margin % of 3.29%. The stock's GF Value™ is 円467.68, compared to a current price of 円444.00 — trading 5.1% below its estimated fair value. The current Operating Margin % is 3.29%, which is 72% below median its 10-year median of 11.77 and 64.8% below the Education industry median of 9.35. Tokyo Individualized Educational Institute's overall GF Score™ is 68/100 with 6 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 Tokyo Individualized Educational Institute (TSE:4745), the current Operating Margin % is 3.29% as of Aug. 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 Tokyo Individualized Educational Institute (TSE:4745) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Individualized Educational Institute stock appears to be undervalued.
The current stock price of 円444.00 is trading 5.1% below its estimated GF Value™ of 円467.68.
Key valuation signals for TSE:4745:
Operating Margin %: 3.29% (72% below median its 10-year median of 11.77)
GF Value™: 円467.68 vs. price of 円444.00 (5.1% below fair value)
Industry Position: 64.8% below the Education median
No single metric tells the full story. See the TSE:4745 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Individualized Educational Institute Business Description
Tokyo Individualized Educational Institute Inc is a Japan based company engaged in providing educational services. It operates private preparatory schools; and provides semi-private tutorial services in Tokyo, Kansai, Tokai, and Kyushu areas.
68GF Score
Get the complete analysis for TSE:4745
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4745 has been successfully added to your 
