Nippon Information Development Co (TSE:2349) 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
Nippon Information Development Co had a gross margin of 24.94% 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.
Nippon Information Development Co Gross Margin % Related Terms
Nippon Information Development Co Gross Margin % Historical Data
* 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.
Nippon Information Development Co Gross Margin % Chart
TSE:2349 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Nippon Information Development 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.
Nippon Information Development Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Nippon Information Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Information Development 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.
Nippon Information Development Co (TSE:2349) has a Gross Margin % of 24.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Information Development Co and its competitors. This is 10% above median its historical median of 22.58. Over the past decade, Nippon Information Development Co's Gross Margin % has ranged from 21.01 to 24.00. According to the industry distribution chart, Nippon Information Development Co ranks #1962 out of 2681 companies in the Software industry, placing it in the top 73.2%.
Is Nippon Information Development Co's Gross Margin % too high?
Nippon Information Development Co's current Gross Margin % of 24.94% is 10% above median its 10-year median of 22.58. Over the past 10 years, this metric has ranged from a low of 21.01 to a high of 24.00. The Software industry median Gross Margin % is 40.41. Nippon Information Development Co's value of 24.94% is 38.3% below this industry median. Based on the distribution chart, Nippon Information Development Co ranks #1962 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, Nippon Information Development Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Information Development Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Nippon Information Development Co ranks #1962 out of 2681 companies for Gross Margin %. This places Nippon Information Development Co in the lower half of its industry. The industry median Gross Margin % is 40.41. Nippon Information Development Co's value of 24.94% is 38.3% below this benchmark. Historically, Nippon Information Development Co's own Gross Margin % has ranged from 21.01 to 24.00 over the past decade. While the company's 10-year median is 22.58 vs. the industry median of 40.41, Nippon Information Development 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 40.41, based on 2,681 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 Information Development Co's current Gross Margin % of 24.94% is 38.3% 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 Nippon Information Development Co and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Information Development Co's current Gross Margin % is 24.94%, which is 10% above median its own 10-year median of 22.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Information Development Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Information Development Co (TSE:2349) is currently considered Fairly Valued. The stock's GF Value™ is 円2,537.54, compared to a current price of 円2,419.00 — trading 4.7% below its estimated fair value. The current Gross Margin % is 24.94%, which is 10% above median its 10-year median of 22.58 and 38.3% below the Software industry median of 40.41. Nippon Information Development Co's overall GF Score™ is 75/100 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 Information Development Co (TSE:2349), the current Gross Margin % is 24.94% 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 Information Development Co (TSE:2349) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Information Development Co stock appears to be undervalued.
The current stock price of 円2,419.00 is trading 4.7% below its estimated GF Value™ of 円2,537.54.
GuruFocus considers Nippon Information Development Co to be Fairly Valued.
Key valuation signals for TSE:2349:
Gross Margin %: 24.94% (10% above median its 10-year median of 22.58)
GF Value™: 円2,537.54 vs. price of 円2,419.00 (4.7% below fair value)
Industry Position: 38.3% below the Software median (#1962 of 2681)
No single metric tells the full story. See the TSE:2349 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Information Development Co Business Description
Nippon Information Development Co Ltd provides information technology services. It provides cloud solutions, financial system solutions, business system solutions, and embedded and control solutions.
75GF Score
Get the complete analysis for TSE:2349
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
TSE:2349 has been successfully added to your 
