Fuso Dentsu CoTSE:7505 -0.85%73 Operating Margin % is 9.56% as of Mar. 2026, which is 257% above its 10-year median of 2.68. GuruFocus rates TSE:7505 with a GF Score™ of 73/100 and a GF Value™ of 円1,153.70 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,820 Software companies, Fuso Dentsu Co ranks better than 62.55% on this metric.
Fuso Dentsu Co (TSE:7505) 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.
Fuso Dentsu Co Operating Margin % Related Terms
Fuso Dentsu Co Operating Margin % Historical Data
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The historical data trend for Fuso Dentsu 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.
TSE:7505 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Fuso Dentsu 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.
Fuso Dentsu Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Fuso Dentsu Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fuso Dentsu Co'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.
Fuso Dentsu Co's Operating Margin % for the fiscal year that ended in Sep. 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.
Fuso Dentsu Co (TSE:7505) has a Operating Margin % of 9.56% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fuso Dentsu Co and its competitors. This is 257% above median its historical median of 2.68. According to the industry distribution chart, Fuso Dentsu Co ranks #1056 out of 2820 companies in the Software industry, placing it in the top 37.4%.
Is Fuso Dentsu Co's Operating Margin % too high?
Fuso Dentsu Co's current Operating Margin % of 9.56% is 257% above median its 10-year median of 2.68. The Software industry median Operating Margin % is 3.87. Fuso Dentsu Co's value of 9.56% is 147.3% above this industry median. Based on the distribution chart, Fuso Dentsu Co ranks #1056 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Fuso Dentsu Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fuso Dentsu Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Fuso Dentsu Co ranks #1056 out of 2820 companies for Operating Margin %. This puts Fuso Dentsu Co in the upper half of its industry. The industry median Operating Margin % is 3.87. Fuso Dentsu Co's value of 9.56% is 147.3% above this benchmark. While the company's 10-year median is 2.68 vs. the industry median of 3.87, Fuso Dentsu 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. Fuso Dentsu Co's current Operating Margin % of 9.56% is 147.3% 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 Fuso Dentsu 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. Fuso Dentsu Co's current Operating Margin % is 9.56%, which is 257% above median its own 10-year median of 2.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fuso Dentsu Co stock overvalued right now?
Based on GuruFocus' analysis, Fuso Dentsu Co (TSE:7505) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,153.70, compared to a current price of 円2,102.00 — trading 82.2% above its estimated fair value. The current Operating Margin % is 9.56%, which is 257% above median its 10-year median of 2.68 and 147.3% above the Software industry median of 3.87. Fuso Dentsu Co's overall GF Score™ is 73/100 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 Fuso Dentsu Co (TSE:7505), the current Operating Margin % is 9.56% as of Mar. 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 Fuso Dentsu Co (TSE:7505) Overvalued in 2026?
Based on GuruFocus' analysis, Fuso Dentsu Co stock appears to be overvalued.
The current stock price of 円2,102.00 is trading 82.2% above its estimated GF Value™ of 円1,153.70.
GuruFocus considers Fuso Dentsu Co to be Significantly Overvalued.
Key valuation signals for TSE:7505:
Operating Margin %: 9.56% (257% above median its 10-year median of 2.68)
GF Value™: 円1,153.70 vs. price of 円2,102.00 (82.2% above fair value)
Industry Position: 147.3% above the Software median (#1056 of 2820)
No single metric tells the full story. See the TSE:7505 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fuso Dentsu Co Ltd offers services related to Information Communication Technology (ICT). Its business activities are divided into two divisions including Common IT ( Information Technology) solution and Industry-Business IT solution. Services offered by the company include system design, development, construction, operation, maintenance and consulting, printing services, cloud, application development, information security, among others. The company serves government agency, airport, hotels, logistics, accounting, and retail stores.
73GF Score
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