NECNECPY -4.65%65 FCF Margin % is 21.64% as of Mar. 2026, which is 468% above its 10-year median of 3.81. GuruFocus rates NECPY with a GF Score™ of 65/100 and a GF Value™ of $9.30 (Modestly Overvalued). Among 2,814 Software companies, NEC ranks better than 69.44% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. NEC's Free Cash Flow for the
three
months ended in Mar. 2026 was $1,582 Mil. NEC's Revenue for the
three
months ended in Mar. 2026 was $7,313 Mil. Therefore, NEC's FCF Margin % for the quarter that ended in Mar. 2026 was 21.64%.
The historical rank and industry rank for NEC's FCF Margin % or its related term are showing as below:
NECPY'
s FCF Margin % Range Over the Past 10 Years
Min: 0.12 Med: 3.81 Max: 9.74
Current: 9.74
During the past 13 years, the highest FCF Margin % of NEC was 9.74%. The lowest was 0.12%. And the median was 3.81%.
NECPY's FCF Margin % is ranked better than 69.44% of 2814
companies
in the Software industry
Industry Median: 2.41
vs NECPY: 9.74
NEC FCF Margin % Related Terms
NEC FCF Margin % Historical Data
* Premium members only.
The historical data trend for NEC's FCF 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.
For the Information Technology Services subindustry, NEC's FCF Margin %, along with its competitors' market caps and FCF 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.
NEC FCF Margin % vs Software Industry
For the Software industry and Technology sector, NEC's FCF Margin % distribution charts can be found below:
* The bar in red indicates where NEC's FCF Margin % falls into.
* 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.
NEC (NECPY) has a FCF Margin % of 21.64% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on NEC and its competitors. This is 468% above median its historical median of 3.81. Over the past decade, NEC's FCF Margin % has ranged from 0.12 to 9.74. According to the industry distribution chart, NEC ranks #860 out of 2814 companies in the Software industry, placing it in the top 30.6%.
Is NEC's FCF Margin % too high?
NEC's current FCF Margin % of 21.64% is 468% above median its 10-year median of 3.81. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 9.74. The Software industry median FCF Margin % is 2.41. NEC's value of 21.64% is 797.9% above this industry median. Based on the distribution chart, NEC ranks #860 out of 2814 companies in the Software industry, which is above the industry midpoint. Overall, NEC has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NEC's FCF Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NEC ranks #860 out of 2814 companies for FCF Margin %. This puts NEC in the upper half of its industry. The industry median FCF Margin % is 2.41. NEC's value of 21.64% is 797.9% above this benchmark. Historically, NEC's own FCF Margin % has ranged from 0.12 to 9.74 over the past decade. While the company's 10-year median is 3.81 vs. the industry median of 2.41, NEC 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 FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.41, based on 2,814 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NEC's current FCF Margin % of 21.64% is 797.9% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on NEC and its competitors. For the Software industry, the median FCF Margin % is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEC's current FCF Margin % is 21.64%, which is 468% above median its own 10-year median of 3.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEC stock overvalued right now?
Based on GuruFocus' analysis, NEC (NECPY) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.30, compared to a current price of $12.10 — trading 30.1% above its estimated fair value. The current FCF Margin % is 21.64%, which is 468% above median its 10-year median of 3.81 and 797.9% above the Software industry median of 2.41. NEC's overall GF Score™ is 65/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For NEC (NECPY), the current FCF Margin % is 21.64% 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 NEC (NECPY) Overvalued in 2026?
Based on GuruFocus' analysis, NEC stock appears to be overvalued.
The current stock price of $12.10 is trading 30.1% above its estimated GF Value™ of $9.30.
GuruFocus considers NEC to be Modestly Overvalued.
Key valuation signals for NECPY:
FCF Margin %: 21.64% (468% above median its 10-year median of 3.81)
GF Value™: $9.30 vs. price of $12.10 (30.1% above fair value)
Industry Position: 797.9% above the Software median (#860 of 2814)
No single metric tells the full story. See the NECPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NEC Corp is engaged in IT services, networks, social infrastructure, and solutions. The company operates through three segments: IT Services, Social Infrastructure, and Others. The IT Services segment provides system integration, consulting, maintenance, outsourcing, cloud services, system equipment, and software services. The Social Infrastructure segment offers network infrastructure, including core networks, mobile base stations, optical transmission systems, and marine systems, along with telecom software, OSS/BSS solutions, aerospace and defense system integration, and maintenance. The Others segment covers the development, manufacturing, and sales of system equipment. It generates the majority of its revenue from the IT Services segment.
65GF Score
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