NECNIPNF +2.57%79 Gross Margin % is 36.14% as of Mar. 2026, which is 25% above its 10-year median of 28.84. GuruFocus rates NIPNF with a GF Score™ of 79/100 and a GF Value™ of $17.90 (Significantly Overvalued). Among 2,683 Software companies, NEC ranks worse than 59.49% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NEC's Gross Profit for the
three
months ended in Mar. 2026 was $2,643 Mil. NEC's Revenue for the
three
months ended in Mar. 2026 was $7,313 Mil. Therefore, NEC's Gross Margin % for the quarter that ended in Mar. 2026 was 36.14%.
The historical rank and industry rank for NEC's Gross Margin % or its related term are showing as below:
NIPNF'
s Gross Margin % Range Over the Past 10 Years
Min: 28.04 Med: 28.84 Max: 32.97
Current: 32.97
During the past 13 years, the highestGross Margin % of NEC was 32.97%. The lowest was 28.04%. And the median was 28.84%.
NIPNF's Gross Margin % is ranked worse than 59.49% of 2683
companies
in the Software industry
Industry Median: 40.45
vs NIPNF: 32.97
NEC had a gross margin of 36.14% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NEC was 2.40% per year.
NEC (OTCPK:NIPNF) 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
NEC had a gross margin of 36.14% 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.
NEC Gross Margin % Related Terms
NEC Gross Margin % Historical Data
* Premium members only.
The historical data trend for NEC'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.
NIPNF vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, NEC'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.
NEC Gross Margin % vs Software Industry
For the Software industry and Technology sector, NEC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NEC'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.
NEC (NIPNF) has a Gross Margin % of 36.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NEC and its competitors. This is 25% above median its historical median of 28.84. Over the past decade, NEC's Gross Margin % has ranged from 28.04 to 32.97. According to the industry distribution chart, NEC ranks #1596 out of 2683 companies in the Software industry, placing it in the top 59.5%.
Is NEC's Gross Margin % too high?
NEC's current Gross Margin % of 36.14% is 25% above median its 10-year median of 28.84. Over the past 10 years, this metric has ranged from a low of 28.04 to a high of 32.97. The Software industry median Gross Margin % is 40.45. NEC's value of 36.14% is 10.7% below this industry median. Based on the distribution chart, NEC ranks #1596 out of 2683 companies in the Software industry, which is below the industry midpoint. Overall, NEC has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NEC's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NEC ranks #1596 out of 2683 companies for Gross Margin %. This places NEC in the lower half of its industry. The industry median Gross Margin % is 40.45. NEC's value of 36.14% is 10.7% below this benchmark. Historically, NEC's own Gross Margin % has ranged from 28.04 to 32.97 over the past decade. While the company's 10-year median is 28.84 vs. the industry median of 40.45, NEC 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 2,683 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. NEC's current Gross Margin % of 36.14% is 10.7% 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 NEC 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. NEC's current Gross Margin % is 36.14%, which is 25% above median its own 10-year median of 28.84. 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 (NIPNF) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.90, compared to a current price of $23.75 — trading 32.7% above its estimated fair value. The current Gross Margin % is 36.14%, which is 25% above median its 10-year median of 28.84 and 10.7% below the Software industry median of 40.45. NEC's overall GF Score™ is 79/100. 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 NEC (NIPNF), the current Gross Margin % is 36.14% 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 (NIPNF) Overvalued in 2026?
Based on GuruFocus' analysis, NEC stock appears to be overvalued.
The current stock price of $23.75 is trading 32.7% above its estimated GF Value™ of $17.90.
GuruFocus considers NEC to be Significantly Overvalued.
Key valuation signals for NIPNF:
Gross Margin %: 36.14% (25% above median its 10-year median of 28.84)
GF Value™: $17.90 vs. price of $23.75 (32.7% above fair value)
Industry Position: 10.7% below the Software median (#1596 of 2683)
No single metric tells the full story. See the NIPNF 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.
79GF Score
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