Showa System EngineeringTSE:4752 75 Operating Margin % is 9.20% as of Mar. 2026, which is 3% above its 10-year median of 8.94. GuruFocus rates TSE:4752 with a GF Score™ of 75/100 and a GF Value™ of 円1,589.75 (Fairly Valued). Among 2,812 Software companies, Showa System Engineering ranks better than 73.76% on this metric.
Showa System Engineering (TSE:4752) 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.
Showa System Engineering Operating Margin % Related Terms
Showa System Engineering 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.
TSE:4752 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Showa System Engineering'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.
Showa System Engineering Operating Margin % vs Software Industry
For the Software industry and Technology sector, Showa System Engineering's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Showa System Engineering's Operating Margin % falls into.
Showa System Engineering 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.
Showa System Engineering'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.
Showa System Engineering (TSE:4752) has a Operating Margin % of 9.20% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Showa System Engineering and its competitors. This is near median its historical median of 8.94. Over the past decade, Showa System Engineering's Operating Margin % has ranged from 6.90 to 11.74. According to the industry distribution chart, Showa System Engineering ranks #738 out of 2812 companies in the Software industry, placing it in the top 26.2%.
Is Showa System Engineering's Operating Margin % too high?
Showa System Engineering's current Operating Margin % of 9.20% is near median its 10-year median of 8.94. Over the past 10 years, this metric has ranged from a low of 6.90 to a high of 11.74. The Software industry median Operating Margin % is 3.88. Showa System Engineering's value of 9.20% is 137.4% above this industry median. Based on the distribution chart, Showa System Engineering ranks #738 out of 2812 companies in the Software industry, which is above the industry midpoint. Overall, Showa System Engineering has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Showa System Engineering's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Showa System Engineering ranks #738 out of 2812 companies for Operating Margin %. This puts Showa System Engineering in the upper half of its industry. The industry median Operating Margin % is 3.88. Showa System Engineering's value of 9.20% is 137.4% above this benchmark. Historically, Showa System Engineering's own Operating Margin % has ranged from 6.90 to 11.74 over the past decade. While the company's 10-year median is 8.94 vs. the industry median of 3.88, Showa System Engineering 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 3.88, based on 2,812 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. Showa System Engineering's current Operating Margin % of 9.20% is 137.4% 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 Showa System Engineering and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa System Engineering's current Operating Margin % is 9.20%, which is near median its own 10-year median of 8.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa System Engineering stock overvalued right now?
Based on GuruFocus' analysis, Showa System Engineering (TSE:4752) is currently considered Fairly Valued. The stock's GF Value™ is 円1,589.75, compared to a current price of 円1,550.00 — trading 2.5% below its estimated fair value. The current Operating Margin % is 9.20%, which is near median its 10-year median of 8.94 and 137.4% above the Software industry median of 3.88. Showa System Engineering's overall GF Score™ is 75/100. 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 Showa System Engineering (TSE:4752), the current Operating Margin % is 9.20% 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 Showa System Engineering (TSE:4752) Overvalued in 2026?
Based on GuruFocus' analysis, Showa System Engineering stock appears to be undervalued.
The current stock price of 円1,550.00 is trading 2.5% below its estimated GF Value™ of 円1,589.75.
GuruFocus considers Showa System Engineering to be Fairly Valued.
Key valuation signals for TSE:4752:
Operating Margin %: 9.20% (near median its 10-year median of 8.94)
GF Value™: 円1,589.75 vs. price of 円1,550.00 (2.5% below fair value)
Industry Position: 137.4% above the Software median (#738 of 2812)
No single metric tells the full story. See the TSE:4752 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Showa System Engineering Corp is engaged in development of information systems, system integration, consulting, software design, and development related to corporate computer systems. The company also provides business support services to various industries, such as administrative services for financial institutions, medical checkup reservations, and scanning services.
75GF Score
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