Imagica Group (TSE:6879) 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.
Imagica Group Operating Margin % Related Terms
Imagica Group Operating Margin % Historical Data
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The historical data trend for Imagica Group'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:6879 vs NFLX, DIS, WBD: Operating Margin % Comparison
For the Entertainment subindustry, Imagica Group'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.
Imagica Group Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Imagica Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Imagica Group'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.
Imagica Group's Operating Margin % for the fiscal year that ended in Mar. 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.
Imagica Group (TSE:6879) has a Operating Margin % of 5.35% as of Mar. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Imagica Group and its competitors. This is 133% above median its historical median of 2.30.
Is Imagica Group's Operating Margin % too high?
Imagica Group's current Operating Margin % of 5.35% is 133% above median its 10-year median of 2.30. The Media - Diversified industry median Operating Margin % is 2.51. Imagica Group's value of 5.35% is 113.1% above this industry median. Overall, Imagica Group has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Imagica Group's Operating Margin % compare to NFLX and DIS?
Imagica Group's Operating Margin % of 5.35% can be compared against companies in the Media - Diversified industry. The industry median Operating Margin % is 2.51. Imagica Group's value of 5.35% is 113.1% above this benchmark. While the company's 10-year median is 2.30 vs. the industry median of 2.51, Imagica Group 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 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. Imagica Group's current Operating Margin % of 5.35% is 113.1% 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 Imagica Group and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Imagica Group's current Operating Margin % is 5.35%, which is 133% above median its own 10-year median of 2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Imagica Group stock overvalued right now?
Imagica Group (TSE:6879) has a current Operating Margin % of 5.35%. The stock's GF Value™ is 円629.50, compared to a current price of 円791.00 — trading 25.7% above its estimated fair value. The current Operating Margin % is 5.35%, which is 133% above median its 10-year median of 2.30 and 113.1% above the Media - Diversified industry median of 2.51. Imagica Group's overall GF Score™ is 18/100 with 9 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 Imagica Group (TSE:6879), the current Operating Margin % is 5.35% as of Mar. 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 Imagica Group (TSE:6879) Overvalued in 2026?
Based on GuruFocus' analysis, Imagica Group stock appears to be overvalued.
The current stock price of 円791.00 is trading 25.7% above its estimated GF Value™ of 円629.50.
Key valuation signals for TSE:6879:
Operating Margin %: 5.35% (133% above median its 10-year median of 2.30)
GF Value™: 円629.50 vs. price of 円791.00 (25.7% above fair value)
Industry Position: 113.1% above the Media - Diversified median
No single metric tells the full story. See the TSE:6879 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Imagica Group Inc is engaged in the media business. The company's business segment include Content Creation, Production Services, Media Localization, and Imaging Systems. The Content Creation segment provides rights management services. Production Services segment offers a one-stop solution for specialized creative services to meet various requests, including Shooting / Editing and Sound Services for film, TV programs, TV commercials, and promotions / DCP (Digital Cinema Package), and others. Media Localization provides dubbing, subtitling, and other media solutions for its clients, and Imaging Systems develops manufactures, import, sells and provide maintenance services for advanced equipment and software.
18GF Score
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