Chi-Technology Co (TSE:5581) Operating Margin %: 5.08% (As of Feb. 2026) — 126% Above Median


TSE:5581 Chi-Technology Co Ltd TSE:5581
31 GF Score
Price 円193.00
GF Value 円266.28
! 1 Warning Sign
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What is Chi-Technology Co Operating Margin %?

Chi-Technology Co TSE:5581 31 Operating Margin % is 5.08% as of Feb. 2026, which is 126% above its 10-year median of 2.25. GuruFocus rates TSE:5581 with a GF Score™ of 31/100 and a GF Value™ of 円266.28. The stock has 1 warning sign investors should review.

Operating Margin % is calculated as Operating Income divided by its Revenue. Chi-Technology Co's Operating Income for the six months ended in Feb. 2026 was 円105 Mil. Chi-Technology Co's Revenue for the six months ended in Feb. 2026 was 円2,076 Mil. Therefore, Chi-Technology Co's Operating Margin % for the quarter that ended in Feb. 2026 was 5.08%.

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

TSE:5581' s Operating Margin % Range Over the Past 10 Years
Min: 0.22   Med: 2.25   Max: 2.75
Current: 2.75


TSE:5581's Operating Margin % is not ranked
in the Software industry.
Industry Median: 3.865 vs TSE:5581: 2.75

Chi-Technology Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Chi-Technology Co's Operating Income for the six months ended in Feb. 2026 was 円105 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was 円116 Mil.


Chi-Technology Co  (TSE:5581) 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.


Chi-Technology Co Operating Margin % Related Terms


Chi-Technology Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Chi-Technology 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.

Chi-Technology Co Operating Margin % Chart

Chi-Technology Co Annual Data
Trend Aug21 Aug22 Aug23 Aug24 Aug25
Operating Margin %
0.00 2.56 1.93 0.22 2.64

Chi-Technology Co Semi-Annual Data
Aug21 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
Operating Margin % Get a 7-Day Free Trial Premium Member Only 1.51 -1.06 4.90 0.50 5.08

TSE:5581 vs UBER, CRM, SHOP: Operating Margin % Comparison

For the Software - Application subindustry, Chi-Technology 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.


Chi-Technology Co Operating Margin % vs Software Industry

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

* The bar in red indicates where Chi-Technology Co's Operating Margin % falls into.


TSE:5581
31GF Score
Chi-Technology Co Ltd TSE:5581
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Chi-Technology Co 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.

Chi-Technology Co's Operating Margin % for the fiscal year that ended in Aug. 2025 is calculated as

Operating Margin %=Operating Income (A: Aug. 2025 ) / Revenue (A: Aug. 2025 )
=110.406 / 4181.569
=2.64 %

Chi-Technology Co's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2026 ) / Revenue (Q: Feb. 2026 )
=105.484 / 2076.058
=5.08 %

* 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 5.08% mean?
Chi-Technology Co (TSE:5581) has a Operating Margin % of 5.08% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chi-Technology Co and its competitors. This is 126% above median its historical median of 2.25. Over the past decade, Chi-Technology Co's Operating Margin % has ranged from 0.22 to 2.75.
Is Chi-Technology Co's Operating Margin % too high?
Chi-Technology Co's current Operating Margin % of 5.08% is 126% above median its 10-year median of 2.25. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 2.75. The Software industry median Operating Margin % is 3.87. Chi-Technology Co's value of 5.08% is 31.4% above this industry median. Overall, Chi-Technology Co has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Chi-Technology Co's Operating Margin % compare to UBER and CRM?
Chi-Technology Co's Operating Margin % of 5.08% can be compared against companies in the Software industry. The industry median Operating Margin % is 3.87. Chi-Technology Co's value of 5.08% is 31.4% above this benchmark. Historically, Chi-Technology Co's own Operating Margin % has ranged from 0.22 to 2.75 over the past decade. While the company's 10-year median is 2.25 vs. the industry median of 3.87, Chi-Technology 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 3.87, based on 2,820 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. Chi-Technology Co's current Operating Margin % of 5.08% is 31.4% 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 Chi-Technology Co 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. Chi-Technology Co's current Operating Margin % is 5.08%, which is 126% above median its own 10-year median of 2.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chi-Technology Co stock overvalued right now?
Chi-Technology Co (TSE:5581) has a current Operating Margin % of 5.08%. The stock's GF Value™ is 円266.28, compared to a current price of 円193.00 — trading 27.5% below its estimated fair value. The current Operating Margin % is 5.08%, which is 126% above median its 10-year median of 2.25 and 31.4% above the Software industry median of 3.87. Chi-Technology Co's overall GF Score™ is 31/100 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 Chi-Technology Co (TSE:5581), the current Operating Margin % is 5.08% as of Feb. 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 Chi-Technology Co (TSE:5581) Overvalued in 2026?

Based on GuruFocus' analysis, Chi-Technology Co stock appears to be undervalued. The current stock price of 円193.00 is trading 27.5% below its estimated GF Value™ of 円266.28.

Key valuation signals for TSE:5581:

  • Operating Margin %: 5.08% (126% above median its 10-year median of 2.25)
  • GF Value™: 円266.28 vs. price of 円193.00 (27.5% below fair value)
  • GF Score™: 31/100 with 1 warning sign
  • Industry Position: 31.4% above the Software median

No single metric tells the full story. See the TSE:5581 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chi-Technology Co Business Description

Address 87 Naito-cho, 6th floor, Okido Government Building, Shinjuku-ku, Tokyo, JPN, 160-0014
Chi-Technology Co Ltd is engaged in Temporary staffing/SES business for manufacturing, logistics, broadcasting, and finance-related businesses, package sales business, and commissioned development business. Its services include Application development support, Software development, and Development and service operation of the nutrition management application.
31GF Score

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

円193.00
Price
円266.28
GF Value