Business Brain Showa OtaTSE:9658 +1.53%86 Operating Margin % is 8.17% as of Mar. 2026, which is 9% above its 10-year median of 7.48. GuruFocus rates TSE:9658 with a GF Score™ of 86/100 and a GF Value™ of 円954.69 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,820 Software companies, Business Brain Showa Ota ranks better than 62.91% on this metric.
Business Brain Showa Ota (TSE:9658) 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.
Business Brain Showa Ota Operating Margin % Related Terms
Business Brain Showa Ota 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.
TSE:9658 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Business Brain Showa Ota'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.
Business Brain Showa Ota Operating Margin % vs Software Industry
For the Software industry and Technology sector, Business Brain Showa Ota's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Business Brain Showa Ota's Operating Margin % falls into.
Business Brain Showa Ota 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.
Business Brain Showa Ota'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.
Business Brain Showa Ota (TSE:9658) has a Operating Margin % of 8.17% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Business Brain Showa Ota and its competitors. This is near median its historical median of 7.48. Over the past decade, Business Brain Showa Ota's Operating Margin % has ranged from 3.55 to 8.66. According to the industry distribution chart, Business Brain Showa Ota ranks #1046 out of 2820 companies in the Software industry, placing it in the top 37.1%.
Is Business Brain Showa Ota's Operating Margin % too high?
Business Brain Showa Ota's current Operating Margin % of 8.17% is near median its 10-year median of 7.48. Over the past 10 years, this metric has ranged from a low of 3.55 to a high of 8.66. The Software industry median Operating Margin % is 3.87. Business Brain Showa Ota's value of 8.17% is 111.4% above this industry median. Based on the distribution chart, Business Brain Showa Ota ranks #1046 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Business Brain Showa Ota has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Business Brain Showa Ota's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Business Brain Showa Ota ranks #1046 out of 2820 companies for Operating Margin %. This puts Business Brain Showa Ota in the upper half of its industry. The industry median Operating Margin % is 3.87. Business Brain Showa Ota's value of 8.17% is 111.4% above this benchmark. Historically, Business Brain Showa Ota's own Operating Margin % has ranged from 3.55 to 8.66 over the past decade. While the company's 10-year median is 7.48 vs. the industry median of 3.87, Business Brain Showa Ota 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. Business Brain Showa Ota's current Operating Margin % of 8.17% is 111.4% 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 Business Brain Showa Ota 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. Business Brain Showa Ota's current Operating Margin % is 8.17%, which is near median its own 10-year median of 7.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Business Brain Showa Ota stock overvalued right now?
Based on GuruFocus' analysis, Business Brain Showa Ota (TSE:9658) is currently considered Fairly Valued. The stock's GF Value™ is 円954.69, compared to a current price of 円993.00 — trading 4% above its estimated fair value. The current Operating Margin % is 8.17%, which is near median its 10-year median of 7.48 and 111.4% above the Software industry median of 3.87. Business Brain Showa Ota's overall GF Score™ is 86/100 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 Business Brain Showa Ota (TSE:9658), the current Operating Margin % is 8.17% 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 Business Brain Showa Ota (TSE:9658) Overvalued in 2026?
Based on GuruFocus' analysis, Business Brain Showa Ota stock appears to be overvalued.
The current stock price of 円993.00 is trading 4% above its estimated GF Value™ of 円954.69.
GuruFocus considers Business Brain Showa Ota to be Fairly Valued.
Key valuation signals for TSE:9658:
Operating Margin %: 8.17% (near median its 10-year median of 7.48)
GF Value™: 円954.69 vs. price of 円993.00 (4% above fair value)
Industry Position: 111.4% above the Software median (#1046 of 2820)
No single metric tells the full story. See the TSE:9658 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Business Brain Showa Ota Inc provides Consulting, System development, and Management services. The Group has two reportable segments: the Consulting and Systems Development Business and the Management Services (BPO) Business. It derives maximum revenue from Consulting and Systems Development Business.
86GF Score
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