Japan Business SystemsTSE:5036 -0.84%86 Operating Margin % is 6.05% as of Mar. 2026, which is 44% above its 10-year median of 4.21. GuruFocus rates TSE:5036 with a GF Score™ of 86/100 and a GF Value™ of 円1,976.54 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,818 Software companies, Japan Business Systems ranks better than 68.38% on this metric.
Japan Business Systems (TSE:5036) 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.
Japan Business Systems Operating Margin % Related Terms
Japan Business Systems Operating Margin % Historical Data
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The historical data trend for Japan Business Systems'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:5036 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Japan Business Systems'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.
Japan Business Systems Operating Margin % vs Software Industry
For the Software industry and Technology sector, Japan Business Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Business Systems's Operating Margin % falls into.
Japan Business Systems 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.
Japan Business Systems's Operating Margin % for the fiscal year that ended in Sep. 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.
Japan Business Systems (TSE:5036) has a Operating Margin % of 6.05% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Business Systems and its competitors. This is 44% above median its historical median of 4.21. Over the past decade, Japan Business Systems' Operating Margin % has ranged from 2.22 to 10.36. According to the industry distribution chart, Japan Business Systems ranks #891 out of 2818 companies in the Software industry, placing it in the top 31.6%.
Is Japan Business Systems' Operating Margin % too high?
Japan Business Systems' current Operating Margin % of 6.05% is 44% above median its 10-year median of 4.21. Over the past 10 years, this metric has ranged from a low of 2.22 to a high of 10.36. The Software industry median Operating Margin % is 3.88. Japan Business Systems' value of 6.05% is 56.1% above this industry median. Based on the distribution chart, Japan Business Systems ranks #891 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Japan Business Systems has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japan Business Systems' Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Japan Business Systems ranks #891 out of 2818 companies for Operating Margin %. This puts Japan Business Systems in the upper half of its industry. The industry median Operating Margin % is 3.88. Japan Business Systems' value of 6.05% is 56.1% above this benchmark. Historically, Japan Business Systems' own Operating Margin % has ranged from 2.22 to 10.36 over the past decade. While the company's 10-year median is 4.21 vs. the industry median of 3.88, Japan Business Systems 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 2,818 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. Japan Business Systems's current Operating Margin % of 6.05% is 56.1% 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 Japan Business Systems 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. Japan Business Systems's current Operating Margin % is 6.05%, which is 44% above median its own 10-year median of 4.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Business Systems stock overvalued right now?
Based on GuruFocus' analysis, Japan Business Systems (TSE:5036) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,976.54, compared to a current price of 円1,420.00 — trading 28.2% below its estimated fair value. The current Operating Margin % is 6.05%, which is 44% above median its 10-year median of 4.21 and 56.1% above the Software industry median of 3.88. Japan Business Systems' overall GF Score™ is 86/100 with 3 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 Japan Business Systems (TSE:5036), the current Operating Margin % is 6.05% 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 Japan Business Systems (TSE:5036) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Business Systems stock appears to be undervalued.
The current stock price of 円1,420.00 is trading 28.2% below its estimated GF Value™ of 円1,976.54.
GuruFocus considers Japan Business Systems to be Modestly Undervalued.
Key valuation signals for TSE:5036:
Operating Margin %: 6.05% (44% above median its 10-year median of 4.21)
GF Value™: 円1,976.54 vs. price of 円1,420.00 (28.2% below fair value)
Industry Position: 56.1% above the Software median (#891 of 2818)
No single metric tells the full story. See the TSE:5036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Business Systems Inc operates in the information technology sector. The company works with cloud companies, various hardware and software manufacturers, research institutes and universities, etc., to provide cloud services to its clients. It is a cloud services integrator that provides consulting and IT services that can maximize customer performance by utilizing cloud services centered on Microsoft. The various services offered by the company include digital transformation, cloud infrastructure solutions, SAP system solutions, Microsoft 365 and Power platform-related solutions, and others. Its reportable segments are; Cloud Integration, which derives key revenue, and Cloud Services. Geographically, the company operates in Japan.
86GF Score
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