NCD CoTSE:4783 +0.53%90 Operating Margin % is 9.90% as of Mar. 2026, which is 92% above its 10-year median of 5.16. GuruFocus rates TSE:4783 with a GF Score™ of 90/100 and a GF Value™ of 円2,409.58 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,812 Software companies, NCD Co ranks better than 65.83% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. NCD Co's Operating Income for the
six
months ended in Mar. 2026 was 円1,577 Mil. NCD Co's Revenue for the
six
months ended in Mar. 2026 was 円15,927 Mil. Therefore, NCD Co's Operating Margin % for the quarter that ended in Mar. 2026 was 9.90%.
Good Sign:
NCD Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for NCD Co's Operating Margin % or its related term are showing as below:
TSE:4783'
s Operating Margin % Range Over the Past 10 Years
Min: 1.38 Med: 5.16 Max: 9.33
Current: 8.55
TSE:4783's Operating Margin % is ranked better than 65.83% of 2812
companies
in the Software industry
Industry Median: 3.875
vs TSE:4783: 8.55
NCD Co's 5-Year Average Operating Margin % Growth Rate was 40.30% per year.
NCD Co's Operating Income for the
six
months ended in Mar. 2026 was 円1,577 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円2,639 Mil.
NCD Co (TSE:4783) 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.
NCD Co Operating Margin % Related Terms
NCD Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for NCD 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:4783 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, NCD 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.
NCD Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, NCD Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NCD 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.
NCD Co'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.
NCD Co (TSE:4783) has a Operating Margin % of 9.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NCD Co and its competitors. This is 92% above median its historical median of 5.16. Over the past decade, NCD Co's Operating Margin % has ranged from 1.38 to 9.33. According to the industry distribution chart, NCD Co ranks #961 out of 2812 companies in the Software industry, placing it in the top 34.2%.
Is NCD Co's Operating Margin % too high?
NCD Co's current Operating Margin % of 9.90% is 92% above median its 10-year median of 5.16. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 9.33. The Software industry median Operating Margin % is 3.88. NCD Co's value of 9.90% is 155.5% above this industry median. Based on the distribution chart, NCD Co ranks #961 out of 2812 companies in the Software industry, which is above the industry midpoint. Overall, NCD Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NCD Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NCD Co ranks #961 out of 2812 companies for Operating Margin %. This puts NCD Co in the upper half of its industry. The industry median Operating Margin % is 3.88. NCD Co's value of 9.90% is 155.5% above this benchmark. Historically, NCD Co's own Operating Margin % has ranged from 1.38 to 9.33 over the past decade. While the company's 10-year median is 5.16 vs. the industry median of 3.88, NCD 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 3.88, 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. NCD Co's current Operating Margin % of 9.90% is 155.5% 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 NCD Co 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. NCD Co's current Operating Margin % is 9.90%, which is 92% above median its own 10-year median of 5.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NCD Co stock overvalued right now?
Based on GuruFocus' analysis, NCD Co (TSE:4783) is currently considered Fairly Valued. The stock's GF Value™ is 円2,409.58, compared to a current price of 円2,478.00 — trading 2.8% above its estimated fair value. The current Operating Margin % is 9.90%, which is 92% above median its 10-year median of 5.16 and 155.5% above the Software industry median of 3.88. NCD Co's overall GF Score™ is 90/100 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 NCD Co (TSE:4783), the current Operating Margin % is 9.90% 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 NCD Co (TSE:4783) Overvalued in 2026?
Based on GuruFocus' analysis, NCD Co stock appears to be overvalued.
The current stock price of 円2,478.00 is trading 2.8% above its estimated GF Value™ of 円2,409.58.
GuruFocus considers NCD Co to be Fairly Valued.
Key valuation signals for TSE:4783:
Operating Margin %: 9.90% (92% above median its 10-year median of 5.16)
GF Value™: 円2,409.58 vs. price of 円2,478.00 (2.8% above fair value)
Industry Position: 155.5% above the Software median (#961 of 2812)
No single metric tells the full story. See the TSE:4783 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NCD Co Ltd is engaged in IT related business. The businesses of the company are System development business that includes System Construction Solutions, Packaging Solutions, Application maintenance and operation solutions; Support & Service Business that includes Infrastructure Construction Solutions, Infrastructure maintenance and operation solutions, and Business Support Solutions; and Parking system business (bicycle parking lot related business) that includes Construction, operation and management of bicycle parking lots, Sales and operation of bicycle parking management systems, and Bicycle-related comprehensive consulting.
90GF 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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