Nippon Techno LabSSE:3849 70 Gross Margin % is 56.43% as of Mar. 2026, which is 1% below its 10-year median of 56.89. GuruFocus rates SSE:3849 with a GF Score™ of 70/100 and a GF Value™ of 円852.71 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,678 Software companies, Nippon Techno Lab ranks better than 64.08% on this metric.
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
Nippon Techno Lab had a gross margin of 56.43% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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.
Nippon Techno Lab Gross Margin % Related Terms
Nippon Techno Lab Gross Margin % Historical Data
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The historical data trend for Nippon Techno Lab'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.
SSE:3849 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Nippon Techno Lab'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.
Nippon Techno Lab Gross Margin % vs Software Industry
For the Software industry and Technology sector, Nippon Techno Lab's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Techno Lab'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.
Nippon Techno Lab (SSE:3849) has a Gross Margin % of 56.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Techno Lab and its competitors. This is near median its historical median of 56.89. Over the past decade, Nippon Techno Lab's Gross Margin % has ranged from 51.20 to 61.29. According to the industry distribution chart, Nippon Techno Lab ranks #962 out of 2678 companies in the Software industry, placing it in the top 35.9%.
Is Nippon Techno Lab's Gross Margin % too high?
Nippon Techno Lab's current Gross Margin % of 56.43% is near median its 10-year median of 56.89. Over the past 10 years, this metric has ranged from a low of 51.20 to a high of 61.29. The Software industry median Gross Margin % is 40.46. Nippon Techno Lab's value of 56.43% is 39.5% above this industry median. Based on the distribution chart, Nippon Techno Lab ranks #962 out of 2678 companies in the Software industry, which is above the industry midpoint. Overall, Nippon Techno Lab has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Techno Lab's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Nippon Techno Lab ranks #962 out of 2678 companies for Gross Margin %. This puts Nippon Techno Lab in the upper half of its industry. The industry median Gross Margin % is 40.46. Nippon Techno Lab's value of 56.43% is 39.5% above this benchmark. Historically, Nippon Techno Lab's own Gross Margin % has ranged from 51.20 to 61.29 over the past decade. While the company's 10-year median is 56.89 vs. the industry median of 40.46, Nippon Techno Lab 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 Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.46, based on 2,678 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. Nippon Techno Lab's current Gross Margin % of 56.43% is 39.5% 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 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 Nippon Techno Lab and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Techno Lab's current Gross Margin % is 56.43%, which is near median its own 10-year median of 56.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Techno Lab stock overvalued right now?
Based on GuruFocus' analysis, Nippon Techno Lab (SSE:3849) is currently considered Modestly Undervalued. The stock's GF Value™ is 円852.71, compared to a current price of 円618.00 — trading 27.5% below its estimated fair value. The current Gross Margin % is 56.43%, which is near median its 10-year median of 56.89 and 39.5% above the Software industry median of 40.46. Nippon Techno Lab's overall GF Score™ is 70/100 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 Nippon Techno Lab (SSE:3849), the current Gross Margin % is 56.43% 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 Nippon Techno Lab (SSE:3849) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Techno Lab stock appears to be undervalued.
The current stock price of 円618.00 is trading 27.5% below its estimated GF Value™ of 円852.71.
GuruFocus considers Nippon Techno Lab to be Modestly Undervalued.
Key valuation signals for SSE:3849:
Gross Margin %: 56.43% (near median its 10-year median of 56.89)
GF Value™: 円852.71 vs. price of 円618.00 (27.5% below fair value)
Industry Position: 39.5% above the Software median (#962 of 2678)
No single metric tells the full story. See the SSE:3849 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Techno Lab Inc is engaged in Imaging & Printer Controller Business that develops and sells controllers and controller software for industrial printers and plotters. The company is engaged in the storage solutions business and contract development business.
70GF Score
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