Housei (TSE:5035) Operating Margin %: 4.14% (As of Dec. 2025) — Near Median

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TSE:5035 Housei Inc TSE:5035
58 GF Score
Price 円358.00
GF Value 円531.59
Valuation Significantly Undervalued
! 5 Warning Signs
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What is Housei Operating Margin %?

Housei TSE:5035 +0.85% 58 Operating Margin % is 4.14% as of Dec. 2025, which is 8% above its 10-year median of 3.85. GuruFocus rates TSE:5035 with a GF Score™ of 58/100 and a GF Value™ of 円531.59 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,826 Software companies, Housei ranks worse than 58.67% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Housei's Operating Income for the three months ended in Dec. 2025 was 円53 Mil. Housei's Revenue for the three months ended in Dec. 2025 was 円1,278 Mil. Therefore, Housei's Operating Margin % for the quarter that ended in Dec. 2025 was 4.14%.

Warning Sign:

Housei Inc operating margin has been in a 5-year decline. The average rate of decline per year is -35%.

The historical rank and industry rank for Housei's Operating Margin % or its related term are showing as below:

TSE:5035' s Operating Margin % Range Over the Past 10 Years
Min: 0.76   Med: 3.85   Max: 7.48
Current: 1.11


TSE:5035's Operating Margin % is ranked worse than
58.67% of 2826 companies
in the Software industry
Industry Median: 3.955 vs TSE:5035: 1.11

Housei's 5-Year Average Operating Margin % Growth Rate was -35.00% per year.

Housei's Operating Income for the three months ended in Dec. 2025 was 円53 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円52 Mil.


Housei  (TSE:5035) 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 Nokia’s 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.


Housei Operating Margin % Related Terms


Housei Operating Margin % Historical Data

* Premium members only.

The historical data trend for Housei'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.

Housei Operating Margin % Chart

Housei Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial 4.95 4.34 3.36 1.60 0.76

Housei Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.36 -2.19 -2.07 4.14 3.79

TSE:5035 vs IBM, ACN, FISV: Operating Margin % Comparison

For the Information Technology Services subindustry, Housei'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.


Housei Operating Margin % vs Software Industry

For the Software industry and Technology sector, Housei's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Housei's Operating Margin % falls into.


TSE:5035
58GF Score
Housei Inc TSE:5035
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Housei 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.

Housei's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=36.553 / 4779.287
=0.76 %

Housei's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=52.853 / 1278.055
=4.14 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 4.14% mean?
Housei (TSE:5035) has a Operating Margin % of 4.14% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Housei and its competitors. This is near median its historical median of 3.85. Over the past decade, Housei's Operating Margin % has ranged from 0.76 to 7.48. According to the industry distribution chart, Housei ranks #1658 out of 2826 companies in the Software industry, placing it in the top 58.7%.
Is Housei's Operating Margin % too high?
Housei's current Operating Margin % of 4.14% is near median its 10-year median of 3.85. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 7.48. The Software industry median Operating Margin % is 3.96. Housei's value of 4.14% is 4.7% above this industry median. Based on the distribution chart, Housei ranks #1658 out of 2826 companies in the Software industry, which is below the industry midpoint. Overall, Housei has a GF Score™ of 58/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Housei's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Housei ranks #1658 out of 2826 companies for Operating Margin %. This places Housei in the lower half of its industry. The industry median Operating Margin % is 3.96. Housei's value of 4.14% is 4.7% above this benchmark. Historically, Housei's own Operating Margin % has ranged from 0.76 to 7.48 over the past decade. While the company's 10-year median is 3.85 vs. the industry median of 3.96, Housei 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 3.96, based on 2,826 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. Housei's current Operating Margin % of 4.14% is 4.7% 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 Housei and its competitors. For the Software industry, the median Operating Margin % is 3.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Housei's current Operating Margin % is 4.14%, which is near median its own 10-year median of 3.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Housei stock overvalued right now?
Based on GuruFocus' analysis, Housei (TSE:5035) is currently considered Significantly Undervalued. The stock's GF Value™ is 円531.59, compared to a current price of 円358.00 — trading 32.7% below its estimated fair value. The current Operating Margin % is 4.14%, which is near median its 10-year median of 3.85 and 4.7% above the Software industry median of 3.96. Housei's overall GF Score™ is 58/100 with 5 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 Housei (TSE:5035), the current Operating Margin % is 4.14% 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 Housei (TSE:5035) Overvalued in 2026?

Based on GuruFocus' analysis, Housei stock appears to be undervalued. The current stock price of 円358.00 is trading 32.7% below its estimated GF Value™ of 円531.59. GuruFocus considers Housei to be Significantly Undervalued.

Key valuation signals for TSE:5035:

  • Operating Margin %: 4.14% (near median its 10-year median of 3.85)
  • GF Value™: 円531.59 vs. price of 円358.00 (32.7% below fair value)
  • GF Score™: 58/100 with 5 warning signs
  • Industry Position: 4.7% above the Software median (#1658 of 2826)

No single metric tells the full story. See the TSE:5035 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Housei Business Description

Address 1-8 Tsukudo-cho, 9th floor, Kagurazaka AK Building, Shinjuku-ku, Tokyo, JPN, 162-0821
Housei Inc predominantly operates in the information technology sector. The company is engaged in various business activities such as the development, operation, and maintenance of information systems for the media, manufacturing, and finance industries, the provision of in-house developed information systems, software and cloud services (Product Promotion Business), and the sale of Japanese products to Chinese consumers and the provision of cloud services for this purpose (Crossborder E-commerce Business). In addition, the company also provides IT services and IP brokerage in the entertainment industry. Its reportable segments are the Information Systems Business, which derives maximum revenue, and the Cross-border E-commerce business.
58GF Score

Get the complete analysis for TSE:5035

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円358.00
Price
円531.59
GF Value