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LTSTSE:6560 +1.07%80 Operating Margin % is 7.13% as of Dec. 2025, which is 2% below its 10-year median of 7.30. GuruFocus rates TSE:6560 with a GF Score™ of 80/100 and a GF Value™ of 円3,191.20 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,067 Business Services companies, LTS ranks better than 54.36% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. LTS's Operating Income for the
three
months ended in Dec. 2025 was 円301 Mil. LTS's Revenue for the
three
months ended in Dec. 2025 was 円4,220 Mil. Therefore, LTS's Operating Margin % for the quarter that ended in Dec. 2025 was 7.13%.
Warning Sign:
LTS Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4.4%.
The historical rank and industry rank for LTS's Operating Margin % or its related term are showing as below:
TSE:6560'
s Operating Margin % Range Over the Past 10 Years
Min: 0.63 Med: 7.3 Max: 9.04
Current: 7.38
TSE:6560's Operating Margin % is ranked better than 54.36% of 1067
companies
in the Business Services industry
Industry Median: 6.37
vs TSE:6560: 7.38
LTS's 5-Year Average Operating Margin % Growth Rate was -4.40% per year.
LTS's Operating Income for the
three
months ended in Dec. 2025 was 円301 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was 円1,259 Mil.
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.
LTS Operating Margin % Related Terms
LTS Operating Margin % Historical Data
* Premium members only.
The historical data trend for LTS'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:6560 vs VRSK, EFX, BAH: Operating Margin % Comparison
For the Consulting Services subindustry, LTS'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.
LTS Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, LTS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where LTS'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.
LTS's Operating Margin % for the fiscal year that ended in Dec. 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.
LTS (TSE:6560) has a Operating Margin % of 7.13% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on LTS and its competitors. This is near median its historical median of 7.30. Over the past decade, LTS's Operating Margin % has ranged from 0.63 to 9.04. According to the industry distribution chart, LTS ranks #487 out of 1067 companies in the Business Services industry, placing it in the top 45.6%.
Is LTS's Operating Margin % too high?
LTS's current Operating Margin % of 7.13% is near median its 10-year median of 7.30. Over the past 10 years, this metric has ranged from a low of 0.63 to a high of 9.04. The Business Services industry median Operating Margin % is 6.37. LTS's value of 7.13% is 11.9% above this industry median. Based on the distribution chart, LTS ranks #487 out of 1067 companies in the Business Services industry, which is above the industry midpoint. Overall, LTS has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LTS's Operating Margin % compare to VRSK and EFX?
According to the Business Services industry distribution chart, LTS ranks #487 out of 1067 companies for Operating Margin %. This puts LTS in the upper half of its industry. The industry median Operating Margin % is 6.37. LTS's value of 7.13% is 11.9% above this benchmark. Historically, LTS's own Operating Margin % has ranged from 0.63 to 9.04 over the past decade. While the company's 10-year median is 7.30 vs. the industry median of 6.37, LTS 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.37, based on 1,067 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. LTS's current Operating Margin % of 7.13% is 11.9% 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 LTS and its competitors. For the Business Services industry, the median Operating Margin % is 6.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LTS's current Operating Margin % is 7.13%, which is near median its own 10-year median of 7.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LTS stock overvalued right now?
Based on GuruFocus' analysis, LTS (TSE:6560) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,191.20, compared to a current price of 円1,704.00 — trading 46.6% below its estimated fair value. The current Operating Margin % is 7.13%, which is near median its 10-year median of 7.30 and 11.9% above the Business Services industry median of 6.37. LTS's overall GF Score™ is 80/100 with 4 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 LTS (TSE:6560), the current Operating Margin % is 7.13% 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 LTS (TSE:6560) Overvalued in 2026?
Based on GuruFocus' analysis, LTS stock appears to be undervalued.
The current stock price of 円1,704.00 is trading 46.6% below its estimated GF Value™ of 円3,191.20.
GuruFocus considers LTS to be Significantly Undervalued.
Key valuation signals for TSE:6560:
Operating Margin %: 7.13% (near median its 10-year median of 7.30)
GF Value™: 円3,191.20 vs. price of 円1,704.00 (46.6% below fair value)
Industry Position: 11.9% above the Business Services median (#487 of 1067)
No single metric tells the full story. See the TSE:6560 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LTS Inc is engaged in the provision of services that transform and grow the businesses of its clients through capabilities and track record in business process management, a core methodology for supporting the implementation of transformation that is essential for corporate growth. The company is developing the Service Business and Platform Business. The Services business provides services to help clients establish operational transformations associated with introducing large-scale IT systems at their workplaces by implementing education and communication promotion measures to encourage changes in awareness and behavior at workplaces.
80GF Score
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