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Operating Margin % is calculated as Operating Income divided by its Revenue. Elements's Operating Income for the
three
months ended in May. 2026 was 円208 Mil. Elements's Revenue for the
three
months ended in May. 2026 was 円1,507 Mil. Therefore, Elements's Operating Margin % for the quarter that ended in May. 2026 was 13.80%.
The historical rank and industry rank for Elements's Operating Margin % or its related term are showing as below:
TSE:5246'
s Operating Margin % Range Over the Past 10 Years
Min: -97.59 Med: -25.23 Max: 2.28
Current: 1.91
TSE:5246's Operating Margin % is ranked worse than 56.94% of 2826
companies
in the Software industry
Industry Median: 3.95
vs TSE:5246: 1.91
Elements's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Elements's Operating Income for the
three
months ended in May. 2026 was 円208 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was 円95 Mil.
Elements (TSE:5246) 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.
Elements Operating Margin % Related Terms
Elements Operating Margin % Historical Data
* Premium members only.
The historical data trend for Elements'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:5246 vs QH, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Elements'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.
Elements Operating Margin % vs Software Industry
For the Software industry and Technology sector, Elements's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Elements'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.
Elements's Operating Margin % for the fiscal year that ended in Nov. 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.
Elements (TSE:5246) has a Operating Margin % of 13.80% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Elements and its competitors. According to the industry distribution chart, Elements ranks #1609 out of 2826 companies in the Software industry, placing it in the top 56.9%.
Is Elements' Operating Margin % too high?
Elements' current Operating Margin % is 13.80%. The Software industry median Operating Margin % is 3.95. Elements' value of 13.80% is 249.4% above this industry median. Based on the distribution chart, Elements ranks #1609 out of 2826 companies in the Software industry, which is below the industry midpoint. Overall, Elements has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elements' Operating Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Elements ranks #1609 out of 2826 companies for Operating Margin %. This places Elements in the lower half of its industry. The industry median Operating Margin % is 3.95. Elements' value of 13.80% is 249.4% above this benchmark. 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 3.95, 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. Elements's current Operating Margin % of 13.80% is 249.4% 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 Elements and its competitors. For the Software industry, the median Operating Margin % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elements's current Operating Margin % is 13.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elements stock overvalued right now?
Based on GuruFocus' analysis, Elements (TSE:5246) is currently considered Possible Value Trap. The stock's GF Value™ is 円1,328.12, compared to a current price of 円803.00 — trading 39.5% below its estimated fair value. The current Operating Margin % is 13.80% and 249.4% above the Software industry median of 3.95. Elements' overall GF Score™ is 60/100 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 Elements (TSE:5246), the current Operating Margin % is 13.80% as of May. 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 Elements (TSE:5246) Overvalued in 2026?
Based on GuruFocus' analysis, Elements stock appears to be undervalued.
The current stock price of 円803.00 is trading 39.5% below its estimated GF Value™ of 円1,328.12.
GuruFocus considers Elements to be Possible Value Trap.
Key valuation signals for TSE:5246:
Operating Margin %: 13.80%
GF Value™: 円1,328.12 vs. price of 円803.00 (39.5% below fair value)
Industry Position: 249.4% above the Software median (#1609 of 2826)
No single metric tells the full story. See the TSE:5246 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elements Inc is engaged in the development and provision of personal authentication solutions such as LIQUID eKYC, an online identity verification service, that utilizes biometrics, image analysis and machine learning technologies, as well as personal optimization solutions for clothing, food and shelter.
60GF Score
Get the complete analysis for TSE:5246
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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