The historical rank and industry rank for NTT Data Group's Gross Margin % or its related term are showing as below:
NTDTY'
s Gross Margin % Range Over the Past 10 Years
Min: 24.65 Med: 25.29 Max: 28.13
Current: 28.13
During the past 13 years, the highestGross Margin % of NTT Data Group was 28.13%. The lowest was 24.65%. And the median was 25.29%.
NTDTY's Gross Margin % is not ranked
in the Software industry.
Industry Median: 40.45
vs NTDTY: 28.13
NTT Data Group had a gross margin of 27.84% for the quarter that ended in Jun. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NTT Data Group was 2.10% per year.
NTT Data Group (OTCPK:NTDTY) 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
NTT Data Group had a gross margin of 27.84% for the quarter that ended in Jun. 2025 => 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.
NTT Data Group Gross Margin % Related Terms
NTT Data Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for NTT Data Group'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.
NTDTY vs FIS, FISV, LDOS: Gross Margin % Comparison
For the Information Technology Services subindustry, NTT Data Group'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.
NTT Data Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, NTT Data Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NTT Data Group'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.
NTT Data Group (NTDTY) has a Gross Margin % of 27.84% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on NTT Data Group and its competitors. This is 10% above median its historical median of 25.29. Over the past decade, NTT Data Group's Gross Margin % has ranged from 24.65 to 28.13.
Is NTT Data Group's Gross Margin % too high?
NTT Data Group's current Gross Margin % of 27.84% is 10% above median its 10-year median of 25.29. Over the past 10 years, this metric has ranged from a low of 24.65 to a high of 28.13. The Software industry median Gross Margin % is 40.45. NTT Data Group's value of 27.84% is 31.2% below this industry median. Overall, NTT Data Group has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does NTT Data Group's Gross Margin % compare to FIS and FISV?
NTT Data Group's Gross Margin % of 27.84% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. NTT Data Group's value of 27.84% is 31.2% below this benchmark. Historically, NTT Data Group's own Gross Margin % has ranged from 24.65 to 28.13 over the past decade. While the company's 10-year median is 25.29 vs. the industry median of 40.45, NTT Data Group 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. NTT Data Group's current Gross Margin % of 27.84% is 31.2% 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 NTT Data Group 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. NTT Data Group's current Gross Margin % is 27.84%, which is 10% above median its own 10-year median of 25.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT Data Group stock overvalued right now?
NTT Data Group (NTDTY) has a current Gross Margin % of 27.84%. The stock's GF Value™ is $16.80, compared to a current price of $24.00 — trading 42.9% above its estimated fair value. The current Gross Margin % is 27.84%, which is 10% above median its 10-year median of 25.29 and 31.2% below the Software industry median of 40.45. NTT Data Group's overall GF Score™ is 63/100 with 11 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 NTT Data Group (NTDTY), the current Gross Margin % is 27.84% as of Jun. 2025. 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 NTT Data Group (NTDTY) Overvalued in 2026?
Based on GuruFocus' analysis, NTT Data Group stock appears to be overvalued.
The current stock price of $24.00 is trading 42.9% above its estimated GF Value™ of $16.80.
Key valuation signals for NTDTY:
Gross Margin %: 27.84% (10% above median its 10-year median of 25.29)
GF Value™: $16.80 vs. price of $24.00 (42.9% above fair value)
Industry Position: 31.2% below the Software median
No single metric tells the full story. See the NTDTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NTT Data Group Corp provides IT services to a wide range of business fields. It provides solutions in cloud, cybersecurity, data and analytics, Salesforce, SAP, ServiceNow, and application development and management, along with 5G-related services. The company also delivers consulting, sector-specific solutions, business process outsourcing, IT modernization, and managed service offerings.
63GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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