Intelligent WaveTSE:4847 +0.11%87 Operating Margin % is 14.54% as of Dec. 2025, which is 44% above its 10-year median of 10.13. GuruFocus rates TSE:4847 with a GF Score™ of 87/100 and a GF Value™ of 円1,183.20 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,818 Software companies, Intelligent Wave ranks better than 71.29% on this metric.
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.
Intelligent Wave Operating Margin % Related Terms
Intelligent Wave Operating Margin % Historical Data
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The historical data trend for Intelligent Wave'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:4847 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Intelligent Wave'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.
Intelligent Wave Operating Margin % vs Software Industry
For the Software industry and Technology sector, Intelligent Wave's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Intelligent Wave'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.
Intelligent Wave's Operating Margin % for the fiscal year that ended in Jun. 2025 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.
Intelligent Wave (TSE:4847) has a Operating Margin % of 14.54% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Intelligent Wave and its competitors. This is 44% above median its historical median of 10.13. Over the past decade, Intelligent Wave's Operating Margin % has ranged from 5.16 to 13.99. According to the industry distribution chart, Intelligent Wave ranks #809 out of 2818 companies in the Software industry, placing it in the top 28.7%.
Is Intelligent Wave's Operating Margin % too high?
Intelligent Wave's current Operating Margin % of 14.54% is 44% above median its 10-year median of 10.13. Over the past 10 years, this metric has ranged from a low of 5.16 to a high of 13.99. The Software industry median Operating Margin % is 3.87. Intelligent Wave's value of 14.54% is 276.2% above this industry median. Based on the distribution chart, Intelligent Wave ranks #809 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Intelligent Wave has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Intelligent Wave's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Intelligent Wave ranks #809 out of 2818 companies for Operating Margin %. This puts Intelligent Wave in the upper half of its industry. The industry median Operating Margin % is 3.87. Intelligent Wave's value of 14.54% is 276.2% above this benchmark. Historically, Intelligent Wave's own Operating Margin % has ranged from 5.16 to 13.99 over the past decade. While the company's 10-year median is 10.13 vs. the industry median of 3.87, Intelligent Wave 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 2,818 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. Intelligent Wave's current Operating Margin % of 14.54% is 276.2% 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 Intelligent Wave 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. Intelligent Wave's current Operating Margin % is 14.54%, which is 44% above median its own 10-year median of 10.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Intelligent Wave stock overvalued right now?
Based on GuruFocus' analysis, Intelligent Wave (TSE:4847) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,183.20, compared to a current price of 円926.00 — trading 21.7% below its estimated fair value. The current Operating Margin % is 14.54%, which is 44% above median its 10-year median of 10.13 and 276.2% above the Software industry median of 3.87. Intelligent Wave's overall GF Score™ is 87/100 with 2 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 Intelligent Wave (TSE:4847), the current Operating Margin % is 14.54% 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 Intelligent Wave (TSE:4847) Overvalued in 2026?
Based on GuruFocus' analysis, Intelligent Wave stock appears to be undervalued.
The current stock price of 円926.00 is trading 21.7% below its estimated GF Value™ of 円1,183.20.
GuruFocus considers Intelligent Wave to be Modestly Undervalued.
Key valuation signals for TSE:4847:
Operating Margin %: 14.54% (44% above median its 10-year median of 10.13)
GF Value™: 円1,183.20 vs. price of 円926.00 (21.7% below fair value)
Industry Position: 276.2% above the Software median (#809 of 2818)
No single metric tells the full story. See the TSE:4847 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Intelligent Wave Inc is engaged in sales of system development services and system products, including hardware and software. It operates in two business segments including the Financial Systems Solutions business, and the Product Solutions business. In the Financial Systems Solutions business, it offers value-added system development, through software and hardware integration, and maintenance services for customers operating primarily in the financial services industry. In the Product Solutions business, it deploys and maintains high value-added systems for data security and other solutions based on the in-house developed product as well as system software procured from third parties for customers operating in a range of industries and fields.
87GF Score
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