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KDDITSE:9433 +0.68%74 Operating Margin % is 16.67% as of Mar. 2026, which is 13% below its 10-year median of 19.09. GuruFocus rates TSE:9433 with a GF Score™ of 74/100 and a GF Value™ of 円2,794.70 (Fairly Valued). The stock has 10 warning signs investors should review. Among 362 Telecommunication Services companies, KDDI ranks better than 70.72% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. KDDI's Operating Income for the
six
months ended in Mar. 2026 was 円526,027 Mil. KDDI's Revenue for the
six
months ended in Mar. 2026 was 円3,155,910 Mil. Therefore, KDDI's Operating Margin % for the quarter that ended in Mar. 2026 was 16.67%.
Warning Sign:
KDDI Corp operating margin has been in a 5-year decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for KDDI's Operating Margin % or its related term are showing as below:
TSE:9433'
s Operating Margin % Range Over the Past 10 Years
Min: 15.83 Med: 19.09 Max: 19.86
Current: 17.45
TSE:9433's Operating Margin % is ranked better than 70.72% of 362
companies
in the Telecommunication Services industry
Industry Median: 9.74
vs TSE:9433: 17.45
KDDI's 5-Year Average Operating Margin % Growth Rate was -2.50% per year.
KDDI's Operating Income for the
six
months ended in Mar. 2026 was 円526,027 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was 円1,059,234 Mil.
KDDI (TSE:9433) 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.
KDDI Operating Margin % Related Terms
KDDI Operating Margin % Historical Data
* Premium members only.
The historical data trend for KDDI'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:9433 vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, KDDI'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.
KDDI Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, KDDI's Operating Margin % distribution charts can be found below:
* The bar in red indicates where KDDI'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.
KDDI'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.
KDDI (TSE:9433) has a Operating Margin % of 16.67% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on KDDI and its competitors. This is 13% below median its historical median of 19.09. Over the past decade, KDDI's Operating Margin % has ranged from 15.83 to 19.86. According to the industry distribution chart, KDDI ranks #106 out of 362 companies in the Telecommunication Services industry, placing it in the top 29.3%.
Is KDDI's Operating Margin % too high?
KDDI's current Operating Margin % of 16.67% is 13% below median its 10-year median of 19.09. Over the past 10 years, this metric has ranged from a low of 15.83 to a high of 19.86. The Telecommunication Services industry median Operating Margin % is 9.74. KDDI's value of 16.67% is 71.1% above this industry median. Based on the distribution chart, KDDI ranks #106 out of 362 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, KDDI has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KDDI's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, KDDI ranks #106 out of 362 companies for Operating Margin %. This puts KDDI in the upper half of its industry. The industry median Operating Margin % is 9.74. KDDI's value of 16.67% is 71.1% above this benchmark. Historically, KDDI's own Operating Margin % has ranged from 15.83 to 19.86 over the past decade. While the company's 10-year median is 19.09 vs. the industry median of 9.74, KDDI 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.74, based on 362 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. KDDI's current Operating Margin % of 16.67% is 71.1% 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 KDDI and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KDDI's current Operating Margin % is 16.67%, which is 13% below median its own 10-year median of 19.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KDDI stock overvalued right now?
Based on GuruFocus' analysis, KDDI (TSE:9433) is currently considered Fairly Valued. The stock's GF Value™ is 円2,794.70, compared to a current price of 円2,809.50 — trading 0.5% above its estimated fair value. The current Operating Margin % is 16.67%, which is 13% below median its 10-year median of 19.09 and 71.1% above the Telecommunication Services industry median of 9.74. KDDI's overall GF Score™ is 74/100 with 10 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 KDDI (TSE:9433), the current Operating Margin % is 16.67% 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 KDDI (TSE:9433) Overvalued in 2026?
Based on GuruFocus' analysis, KDDI stock appears to be overvalued.
The current stock price of 円2,809.50 is trading 0.5% above its estimated GF Value™ of 円2,794.70.
GuruFocus considers KDDI to be Fairly Valued.
Key valuation signals for TSE:9433:
Operating Margin %: 16.67% (13% below median its 10-year median of 19.09)
GF Value™: 円2,794.70 vs. price of 円2,809.50 (0.5% above fair value)
Industry Position: 71.1% above the Telecommunication Services median (#106 of 362)
No single metric tells the full story. See the TSE:9433 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KDDI is Japan's second-largest wireless operator (30% market share), the largest pay-TV operator (53% market share) and the second-largest provider of fibre-to-the-home broadband (12% market share). It has grown through acquisition and is focusing on increasing the number of customers who subscribe to more than one telecommunication service. It is also looking to grow its Life Design business which includes commerce, energy, and finance and had over 57 million Internet of Things connections by the end of March 2026.
74GF Score
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