ForvalTSE:8275 +0.90%77 Operating Margin % is 6.71% as of Mar. 2026, which is 29% above its 10-year median of 5.21. GuruFocus rates TSE:8275 with a GF Score™ of 77/100 and a GF Value™ of 円1,422.61 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,820 Software companies, Forval ranks better than 54.15% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Forval's Operating Income for the
six
months ended in Mar. 2026 was 円2,522 Mil. Forval's Revenue for the
six
months ended in Mar. 2026 was 円37,590 Mil. Therefore, Forval's Operating Margin % for the quarter that ended in Mar. 2026 was 6.71%.
Good Sign:
Forval Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Forval's Operating Margin % or its related term are showing as below:
TSE:8275'
s Operating Margin % Range Over the Past 10 Years
Min: 4.1 Med: 5.21 Max: 6.49
Current: 5.21
TSE:8275's Operating Margin % is ranked better than 54.15% of 2820
companies
in the Software industry
Industry Median: 3.865
vs TSE:8275: 5.21
Forval's 5-Year Average Operating Margin % Growth Rate was 0.40% per year.
Forval's Operating Income for the
six
months ended in Mar. 2026 was 円2,522 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円3,724 Mil.
Forval (TSE:8275) 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.
Forval Operating Margin % Related Terms
Forval Operating Margin % Historical Data
* Premium members only.
The historical data trend for Forval'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:8275 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Forval'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.
Forval Operating Margin % vs Software Industry
For the Software industry and Technology sector, Forval's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Forval'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.
Forval's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Forval (TSE:8275) has a Operating Margin % of 6.71% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Forval and its competitors. This is 29% above median its historical median of 5.21. Over the past decade, Forval's Operating Margin % has ranged from 4.10 to 6.49. According to the industry distribution chart, Forval ranks #1293 out of 2820 companies in the Software industry, placing it in the top 45.9%.
Is Forval's Operating Margin % too high?
Forval's current Operating Margin % of 6.71% is 29% above median its 10-year median of 5.21. Over the past 10 years, this metric has ranged from a low of 4.10 to a high of 6.49. The Software industry median Operating Margin % is 3.87. Forval's value of 6.71% is 73.6% above this industry median. Based on the distribution chart, Forval ranks #1293 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Forval has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Forval's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Forval ranks #1293 out of 2820 companies for Operating Margin %. This puts Forval in the upper half of its industry. The industry median Operating Margin % is 3.87. Forval's value of 6.71% is 73.6% above this benchmark. Historically, Forval's own Operating Margin % has ranged from 4.10 to 6.49 over the past decade. While the company's 10-year median is 5.21 vs. the industry median of 3.87, Forval 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. Forval's current Operating Margin % of 6.71% is 73.6% 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 Forval 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. Forval's current Operating Margin % is 6.71%, which is 29% above median its own 10-year median of 5.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forval stock overvalued right now?
Based on GuruFocus' analysis, Forval (TSE:8275) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,422.61, compared to a current price of 円1,014.00 — trading 28.7% below its estimated fair value. The current Operating Margin % is 6.71%, which is 29% above median its 10-year median of 5.21 and 73.6% above the Software industry median of 3.87. Forval's overall GF Score™ is 77/100 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 Forval (TSE:8275), the current Operating Margin % is 6.71% 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 Forval (TSE:8275) Overvalued in 2026?
Based on GuruFocus' analysis, Forval stock appears to be undervalued.
The current stock price of 円1,014.00 is trading 28.7% below its estimated GF Value™ of 円1,422.61.
GuruFocus considers Forval to be Modestly Undervalued.
Key valuation signals for TSE:8275:
Operating Margin %: 6.71% (29% above median its 10-year median of 5.21)
GF Value™: 円1,422.61 vs. price of 円1,014.00 (28.7% below fair value)
Industry Position: 73.6% above the Software median (#1293 of 2820)
No single metric tells the full story. See the TSE:8275 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forval Corp is engaged in information communication and management consulting businesses. The company provides consulting services for IP integration system, information security, web construction, overseas expansion services, business succession, among others.
77GF Score
Get the complete analysis for TSE:8275
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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