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The historical rank and industry rank for Japan Communications's Operating Margin % or its related term are showing as below:
TSE:9424'
s Operating Margin % Range Over the Past 10 Years
Min: -63.97 Med: -0.55 Max: 15.39
Current: 9.75
TSE:9424's Operating Margin % is ranked better than 50.54% of 368
companies
in the Telecommunication Services industry
Industry Median: 9.695
vs TSE:9424: 9.75
Japan Communications's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Japan Communications (TSE:9424) 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.
Japan Communications Operating Margin % Related Terms
Japan Communications Operating Margin % Historical Data
* Premium members only.
The historical data trend for Japan Communications'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:9424 vs VZ, TMUS, T: Operating Margin % Comparison
For the Telecom Services subindustry, Japan Communications'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.
Japan Communications Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Japan Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Communications's Operating Margin % falls into.
Japan Communications 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.
Japan Communications'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.
Japan Communications (TSE:9424) has a Operating Margin % of 7.96% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Communications and its competitors. According to the industry distribution chart, Japan Communications ranks #182 out of 368 companies in the Telecommunication Services industry, placing it in the top 49.5%.
Is Japan Communications' Operating Margin % too high?
Japan Communications' current Operating Margin % is 7.96%. The Telecommunication Services industry median Operating Margin % is 9.70. Japan Communications' value of 7.96% is 17.9% below this industry median. Based on the distribution chart, Japan Communications ranks #182 out of 368 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Japan Communications has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Communications' Operating Margin % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Japan Communications ranks #182 out of 368 companies for Operating Margin %. This puts Japan Communications in the upper half of its industry. The industry median Operating Margin % is 9.70. Japan Communications' value of 7.96% is 17.9% below this benchmark. 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.70, based on 368 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. Japan Communications's current Operating Margin % of 7.96% is 17.9% 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 Japan Communications and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Communications's current Operating Margin % is 7.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Communications stock overvalued right now?
Based on GuruFocus' analysis, Japan Communications (TSE:9424) is currently considered Possible Value Trap. The stock's GF Value™ is 円240.08, compared to a current price of 円120.00 — trading 50% below its estimated fair value. The current Operating Margin % is 7.96% and 17.9% below the Telecommunication Services industry median of 9.70. Japan Communications' overall GF Score™ is 59/100 with 2 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 Japan Communications (TSE:9424), the current Operating Margin % is 7.96% 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 Japan Communications (TSE:9424) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Communications stock appears to be undervalued.
The current stock price of 円120.00 is trading 50% below its estimated GF Value™ of 円240.08.
GuruFocus considers Japan Communications to be Possible Value Trap.
Key valuation signals for TSE:9424:
Operating Margin %: 7.96%
GF Value™: 円240.08 vs. price of 円120.00 (50% below fair value)
Industry Position: 17.9% below the Telecommunication Services median (#182 of 368)
No single metric tells the full story. See the TSE:9424 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Communications Inc is a mobile virtual network operator. It creates the next generation internet to assist industrial structure through mobile technology. The company provides mobile platforms to handset manufacturers, IP-PBX makers, system integrators, and others.
59GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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