Tokyo Communications GroupTSE:7359 +0.94%69 Operating Margin % is 1.81% as of Dec. 2025, which is 72% below its 10-year median of 6.49. GuruFocus rates TSE:7359 with a GF Score™ of 69/100 and a GF Value™ of 円495.89 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,023 Media - Diversified companies, Tokyo Communications Group ranks better than 52.88% on this metric.
The historical rank and industry rank for Tokyo Communications Group's Operating Margin % or its related term are showing as below:
TSE:7359'
s Operating Margin % Range Over the Past 10 Years
Min: -3.94 Med: 6.49 Max: 24.7
Current: 3.14
TSE:7359's Operating Margin % is ranked better than 52.88% of 1023
companies
in the Media - Diversified industry
Industry Median: 2.51
vs TSE:7359: 3.14
Tokyo Communications Group (TSE:7359) 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.
Tokyo Communications Group Operating Margin % Related Terms
Tokyo Communications Group Operating Margin % Historical Data
* 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.
Tokyo Communications Group Operating Margin % Chart
TSE:7359 vs APP, OMC, TTD: Operating Margin % Comparison
For the Advertising Agencies subindustry, Tokyo Communications 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.
Tokyo Communications Group Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Tokyo Communications Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tokyo Communications Group's Operating Margin % falls into.
Tokyo Communications Group 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.
Tokyo Communications Group'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.
Tokyo Communications Group (TSE:7359) has a Operating Margin % of 1.81% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tokyo Communications Group and its competitors. This is 72% below median its historical median of 6.49. According to the industry distribution chart, Tokyo Communications Group ranks #482 out of 1023 companies in the Media - Diversified industry, placing it in the top 47.1%.
Is Tokyo Communications Group's Operating Margin % too high?
Tokyo Communications Group's current Operating Margin % of 1.81% is 72% below median its 10-year median of 6.49. The Media - Diversified industry median Operating Margin % is 2.51. Tokyo Communications Group's value of 1.81% is 27.9% below this industry median. Based on the distribution chart, Tokyo Communications Group ranks #482 out of 1023 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Tokyo Communications Group has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tokyo Communications Group's Operating Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Tokyo Communications Group ranks #482 out of 1023 companies for Operating Margin %. This puts Tokyo Communications Group in the upper half of its industry. The industry median Operating Margin % is 2.51. Tokyo Communications Group's value of 1.81% is 27.9% below this benchmark. While the company's 10-year median is 6.49 vs. the industry median of 2.51, Tokyo Communications Group has consistently been below 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. Tokyo Communications Group's current Operating Margin % of 1.81% is 27.9% below 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 Tokyo Communications 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. Tokyo Communications Group's current Operating Margin % is 1.81%, which is 72% below median its own 10-year median of 6.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Communications Group stock overvalued right now?
Based on GuruFocus' analysis, Tokyo Communications Group (TSE:7359) is currently considered Significantly Undervalued. The stock's GF Value™ is 円495.89, compared to a current price of 円214.00 — trading 56.8% below its estimated fair value. The current Operating Margin % is 1.81%, which is 72% below median its 10-year median of 6.49 and 27.9% below the Media - Diversified industry median of 2.51. Tokyo Communications Group's overall GF Score™ is 69/100 with 5 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 Tokyo Communications Group (TSE:7359), the current Operating Margin % is 1.81% 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 Tokyo Communications Group (TSE:7359) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Communications Group stock appears to be undervalued.
The current stock price of 円214.00 is trading 56.8% below its estimated GF Value™ of 円495.89.
GuruFocus considers Tokyo Communications Group to be Significantly Undervalued.
Key valuation signals for TSE:7359:
Operating Margin %: 1.81% (72% below median its 10-year median of 6.49)
GF Value™: 円495.89 vs. price of 円214.00 (56.8% below fair value)
Industry Position: 27.9% below the Media - Diversified median (#482 of 1023)
No single metric tells the full story. See the TSE:7359 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Communications Group Inc is an IT marketing company engaged in two main areas: the application business and the advertising agency business. In the app segment, the company develops smartphone apps that generate advertising revenue. The advertising agency business focuses on affiliate-based internet advertising. The company operates through two key segments: the Media Business and the Platform Business. The Media Business earns revenue from advertisers through media management, development of free smartphone apps, and ad product sales using ad tech. The Platform Business operates communication services, health tech apps, and messaging apps, following monthly subscription or pay-as-you-go models tailored to user needs and market demands.
69GF Score
Get the complete analysis for TSE:7359
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:7359 has been successfully added to your 
