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Japan Process Development CoTSE:9651 +0.83%82 Operating Margin % is 13.10% as of Feb. 2026, which is 37% above its 10-year median of 9.56. GuruFocus rates TSE:9651 with a GF Score™ of 82/100 and a GF Value™ of 円1,283.15 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,826 Software companies, Japan Process Development Co ranks better than 75.73% on this metric.
Japan Process Development Co (TSE:9651) 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 Process Development Co Operating Margin % Related Terms
Japan Process Development Co 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.
Japan Process Development Co Operating Margin % Chart
TSE:9651 vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, Japan Process Development 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.
Japan Process Development Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Japan Process Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Japan Process Development Co's Operating Margin % falls into.
Japan Process Development Co 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.
* 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 Process Development Co (TSE:9651) has a Operating Margin % of 13.10% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Japan Process Development Co and its competitors. This is 37% above median its historical median of 9.56. Over the past decade, Japan Process Development Co's Operating Margin % has ranged from 7.32 to 12.45. According to the industry distribution chart, Japan Process Development Co ranks #686 out of 2826 companies in the Software industry, placing it in the top 24.3%.
Is Japan Process Development Co's Operating Margin % too high?
Japan Process Development Co's current Operating Margin % of 13.10% is 37% above median its 10-year median of 9.56. Over the past 10 years, this metric has ranged from a low of 7.32 to a high of 12.45. The Software industry median Operating Margin % is 3.90. Japan Process Development Co's value of 13.10% is 235.9% above this industry median. Based on the distribution chart, Japan Process Development Co ranks #686 out of 2826 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Process Development Co has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Process Development Co's Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Japan Process Development Co ranks #686 out of 2826 companies for Operating Margin %. This places Japan Process Development Co in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.90. Japan Process Development Co's value of 13.10% is 235.9% above this benchmark. Historically, Japan Process Development Co's own Operating Margin % has ranged from 7.32 to 12.45 over the past decade. While the company's 10-year median is 9.56 vs. the industry median of 3.90, Japan Process Development 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 3.90, based on 2,826 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 Process Development Co's current Operating Margin % of 13.10% is 235.9% 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 Japan Process Development Co and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Process Development Co's current Operating Margin % is 13.10%, which is 37% above median its own 10-year median of 9.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Process Development Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Process Development Co (TSE:9651) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,283.15, compared to a current price of 円1,950.00 — trading 52% above its estimated fair value. The current Operating Margin % is 13.10%, which is 37% above median its 10-year median of 9.56 and 235.9% above the Software industry median of 3.90. Japan Process Development Co's overall GF Score™ is 82/100 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 Process Development Co (TSE:9651), the current Operating Margin % is 13.10% as of Feb. 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 Process Development Co (TSE:9651) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Process Development Co stock appears to be overvalued.
The current stock price of 円1,950.00 is trading 52% above its estimated GF Value™ of 円1,283.15.
GuruFocus considers Japan Process Development Co to be Significantly Overvalued.
Key valuation signals for TSE:9651:
Operating Margin %: 13.10% (37% above median its 10-year median of 9.56)
GF Value™: 円1,283.15 vs. price of 円1,950.00 (52% above fair value)
Industry Position: 235.9% above the Software median (#686 of 2826)
No single metric tells the full story. See the TSE:9651 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Process Development Co Ltd is a Japan based system integration and software development company. It is involved in the control system business, automotive system business, specific information system business, embedded systems business, IT service business and others.
82GF Score
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