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Tokai Soft CoNGO:4430 85 Gross Margin % is 25.66% as of Feb. 2026, which is 13% above its 10-year median of 22.69. GuruFocus rates NGO:4430 with a GF Score™ of 85/100 and a GF Value™ of 円1,113.20. The stock has 1 warning sign investors should review. Among 2,688 Software companies, Tokai Soft Co ranks worse than 73.81% on this metric.
The historical rank and industry rank for Tokai Soft Co's Gross Margin % or its related term are showing as below:
NGO:4430'
s Gross Margin % Range Over the Past 10 Years
Min: 18.32 Med: 22.69 Max: 25.24
Current: 23.53
During the past 10 years, the highestGross Margin % of Tokai Soft Co was 25.24%. The lowest was 18.32%. And the median was 22.69%.
NGO:4430's Gross Margin % is ranked worse than 73.81% of 2688
companies
in the Software industry
Industry Median: 40.48
vs NGO:4430: 23.53
Tokai Soft Co had a gross margin of 25.66% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tokai Soft Co was 1.30% per year.
Tokai Soft Co (NGO:4430) 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
Tokai Soft Co had a gross margin of 25.66% for the quarter that ended in Feb. 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.
Tokai Soft Co Gross Margin % Related Terms
Tokai Soft Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tokai Soft Co'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:4430 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Tokai Soft Co'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.
Tokai Soft Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Tokai Soft Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Soft Co'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.
Tokai Soft Co (NGO:4430) has a Gross Margin % of 25.66% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tokai Soft Co and its competitors. This is 13% above median its historical median of 22.69. Over the past decade, Tokai Soft Co's Gross Margin % has ranged from 18.32 to 25.24. According to the industry distribution chart, Tokai Soft Co ranks #1984 out of 2688 companies in the Software industry, placing it in the top 73.8%.
Is Tokai Soft Co's Gross Margin % too high?
Tokai Soft Co's current Gross Margin % of 25.66% is 13% above median its 10-year median of 22.69. Over the past 10 years, this metric has ranged from a low of 18.32 to a high of 25.24. The Software industry median Gross Margin % is 40.48. Tokai Soft Co's value of 25.66% is 36.6% below this industry median. Based on the distribution chart, Tokai Soft Co ranks #1984 out of 2688 companies in the Software industry, which is below the industry midpoint. Overall, Tokai Soft Co has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Tokai Soft Co's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Tokai Soft Co ranks #1984 out of 2688 companies for Gross Margin %. This places Tokai Soft Co in the lower half of its industry. The industry median Gross Margin % is 40.48. Tokai Soft Co's value of 25.66% is 36.6% below this benchmark. Historically, Tokai Soft Co's own Gross Margin % has ranged from 18.32 to 25.24 over the past decade. While the company's 10-year median is 22.69 vs. the industry median of 40.48, Tokai Soft Co 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 40.48, based on 2,688 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. Tokai Soft Co's current Gross Margin % of 25.66% is 36.6% 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 Tokai Soft Co and its competitors. For the Software industry, the median Gross Margin % is 40.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Soft Co's current Gross Margin % is 25.66%, which is 13% above median its own 10-year median of 22.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Soft Co stock overvalued right now?
Tokai Soft Co (NGO:4430) has a current Gross Margin % of 25.66%. The stock's GF Value™ is 円1,113.20, compared to a current price of 円943.00 — trading 15.3% below its estimated fair value. The current Gross Margin % is 25.66%, which is 13% above median its 10-year median of 22.69 and 36.6% below the Software industry median of 40.48. Tokai Soft Co's overall GF Score™ is 85/100 with 1 warning sign 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 Tokai Soft Co (NGO:4430), the current Gross Margin % is 25.66% 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 Tokai Soft Co (NGO:4430) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Soft Co stock appears to be undervalued.
The current stock price of 円943.00 is trading 15.3% below its estimated GF Value™ of 円1,113.20.
Key valuation signals for NGO:4430:
Gross Margin %: 25.66% (13% above median its 10-year median of 22.69)
GF Value™: 円1,113.20 vs. price of 円943.00 (15.3% below fair value)
Industry Position: 36.6% below the Software median (#1984 of 2688)
No single metric tells the full story. See the NGO:4430 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Soft Co Ltd provides software solutions. The company is engaged in a wide range of businesses as an engineering company that combines technologies for total system construction, network and solution solutions, and support technologies that provide stable operation.
85GF Score
Get the complete analysis for NGO:4430
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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