CMCNGO:2185 65 Gross Margin % is 38.88% as of Mar. 2026, which is 5% above its 10-year median of 37.04. GuruFocus rates NGO:2185 with a GF Score™ of 65/100 and a GF Value™ of 円908.56. The stock has 4 warning signs investors should review. Among 2,680 Software companies, CMC ranks worse than 51.72% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. CMC's Gross Profit for the
six
months ended in Mar. 2026 was 円3,980 Mil. CMC's Revenue for the
six
months ended in Mar. 2026 was 円10,236 Mil. Therefore, CMC's Gross Margin % for the quarter that ended in Mar. 2026 was 38.88%.
The historical rank and industry rank for CMC's Gross Margin % or its related term are showing as below:
NGO:2185'
s Gross Margin % Range Over the Past 10 Years
Min: 32.1 Med: 37.04 Max: 39.22
Current: 39.22
During the past 13 years, the highestGross Margin % of CMC was 39.22%. The lowest was 32.10%. And the median was 37.04%.
NGO:2185's Gross Margin % is ranked worse than 51.72% of 2680
companies
in the Software industry
Industry Median: 40.45
vs NGO:2185: 39.22
CMC had a gross margin of 38.88% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for CMC was 0.90% per year.
CMC (NGO:2185) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
CMC had a gross margin of 38.88% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
CMC Gross Margin % Related Terms
CMC Gross Margin % Historical Data
* Premium members only.
The historical data trend for CMC's Gross 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.
NGO:2185 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, CMC's Gross Margin %, along with its competitors' market caps and Gross 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.
CMC Gross Margin % vs Software Industry
For the Software industry and Technology sector, CMC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CMC's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
CMC (NGO:2185) has a Gross Margin % of 38.88% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CMC and its competitors. This is near median its historical median of 37.04. Over the past decade, CMC's Gross Margin % has ranged from 32.10 to 39.22. According to the industry distribution chart, CMC ranks #1386 out of 2680 companies in the Software industry, placing it in the top 51.7%.
Is CMC's Gross Margin % too high?
CMC's current Gross Margin % of 38.88% is near median its 10-year median of 37.04. Over the past 10 years, this metric has ranged from a low of 32.10 to a high of 39.22. The Software industry median Gross Margin % is 40.45. CMC's value of 38.88% is 3.9% below this industry median. Based on the distribution chart, CMC ranks #1386 out of 2680 companies in the Software industry, which is below the industry midpoint. Overall, CMC has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does CMC's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, CMC ranks #1386 out of 2680 companies for Gross Margin %. This places CMC in the lower half of its industry. The industry median Gross Margin % is 40.45. CMC's value of 38.88% is 3.9% below this benchmark. Historically, CMC's own Gross Margin % has ranged from 32.10 to 39.22 over the past decade. While the company's 10-year median is 37.04 vs. the industry median of 40.45, CMC has consistently been below 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 Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CMC's current Gross Margin % of 38.88% is 3.9% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on CMC and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CMC's current Gross Margin % is 38.88%, which is near median its own 10-year median of 37.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CMC stock overvalued right now?
CMC (NGO:2185) has a current Gross Margin % of 38.88%. The stock's GF Value™ is 円908.56, compared to a current price of 円1,090.50 — trading 20% above its estimated fair value. The current Gross Margin % is 38.88%, which is near median its 10-year median of 37.04 and 3.9% below the Software industry median of 40.45. CMC's overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For CMC (NGO:2185), the current Gross Margin % is 38.88% 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 CMC (NGO:2185) Overvalued in 2026?
Based on GuruFocus' analysis, CMC stock appears to be overvalued.
The current stock price of 円1,090.50 is trading 20% above its estimated GF Value™ of 円908.56.
Key valuation signals for NGO:2185:
Gross Margin %: 38.88% (near median its 10-year median of 37.04)
GF Value™: 円908.56 vs. price of 円1,090.50 (20% above fair value)
Industry Position: 3.9% below the Software median (#1386 of 2680)
No single metric tells the full story. See the NGO:2185 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CMC Corp is a Japanese company engaged in writing and editing technical manuals for automakers in Japan. The business is comprised of marketing operations and system development operations.
65GF Score
Get the complete analysis for NGO:2185
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NGO:2185 has been successfully added to your 
