Needs WellTSE:3992 +0.67%91 Gross Margin % is 23.83% as of Mar. 2026, which is 4% above its 10-year median of 22.97. GuruFocus rates TSE:3992 with a GF Score™ of 91/100 and a GF Value™ of 円498.72 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,677 Software companies, Needs Well ranks worse than 74.45% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Needs Well's Gross Profit for the
three
months ended in Mar. 2026 was 円625 Mil. Needs Well's Revenue for the
three
months ended in Mar. 2026 was 円2,622 Mil. Therefore, Needs Well's Gross Margin % for the quarter that ended in Mar. 2026 was 23.83%.
Warning Sign:
Needs Well Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Needs Well's Gross Margin % or its related term are showing as below:
TSE:3992'
s Gross Margin % Range Over the Past 10 Years
Min: 19.81 Med: 22.97 Max: 24.58
Current: 23.14
During the past 11 years, the highestGross Margin % of Needs Well was 24.58%. The lowest was 19.81%. And the median was 22.97%.
TSE:3992's Gross Margin % is ranked worse than 74.45% of 2677
companies
in the Software industry
Industry Median: 40.49
vs TSE:3992: 23.14
Needs Well had a gross margin of 23.83% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Needs Well was -1.30% per year.
Needs Well (TSE:3992) 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
Needs Well had a gross margin of 23.83% 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.
Needs Well Gross Margin % Related Terms
Needs Well Gross Margin % Historical Data
* Premium members only.
The historical data trend for Needs Well'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.
TSE:3992 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Needs Well'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.
Needs Well Gross Margin % vs Software Industry
For the Software industry and Technology sector, Needs Well's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Needs Well'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.
Needs Well (TSE:3992) has a Gross Margin % of 23.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Needs Well and its competitors. This is near median its historical median of 22.97. Over the past decade, Needs Well's Gross Margin % has ranged from 19.81 to 24.58. According to the industry distribution chart, Needs Well ranks #1993 out of 2677 companies in the Software industry, placing it in the top 74.4%.
Is Needs Well's Gross Margin % too high?
Needs Well's current Gross Margin % of 23.83% is near median its 10-year median of 22.97. Over the past 10 years, this metric has ranged from a low of 19.81 to a high of 24.58. The Software industry median Gross Margin % is 40.49. Needs Well's value of 23.83% is 41.1% below this industry median. Based on the distribution chart, Needs Well ranks #1993 out of 2677 companies in the Software industry, which is below the industry midpoint. Overall, Needs Well has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Needs Well's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Needs Well ranks #1993 out of 2677 companies for Gross Margin %. This places Needs Well in the lower half of its industry. The industry median Gross Margin % is 40.49. Needs Well's value of 23.83% is 41.1% below this benchmark. Historically, Needs Well's own Gross Margin % has ranged from 19.81 to 24.58 over the past decade. While the company's 10-year median is 22.97 vs. the industry median of 40.49, Needs Well 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 40.49, based on 2,677 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. Needs Well's current Gross Margin % of 23.83% is 41.1% 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 Needs Well and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Needs Well's current Gross Margin % is 23.83%, which is near median its own 10-year median of 22.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Needs Well stock overvalued right now?
Based on GuruFocus' analysis, Needs Well (TSE:3992) is currently considered Fairly Valued. The stock's GF Value™ is 円498.72, compared to a current price of 円452.00 — trading 9.4% below its estimated fair value. The current Gross Margin % is 23.83%, which is near median its 10-year median of 22.97 and 41.1% below the Software industry median of 40.49. Needs Well's overall GF Score™ is 91/100 with 2 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 Needs Well (TSE:3992), the current Gross Margin % is 23.83% 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 Needs Well (TSE:3992) Overvalued in 2026?
Based on GuruFocus' analysis, Needs Well stock appears to be undervalued.
The current stock price of 円452.00 is trading 9.4% below its estimated GF Value™ of 円498.72.
GuruFocus considers Needs Well to be Fairly Valued.
Key valuation signals for TSE:3992:
Gross Margin %: 23.83% (near median its 10-year median of 22.97)
GF Value™: 円498.72 vs. price of 円452.00 (9.4% below fair value)
Industry Position: 41.1% below the Software median (#1993 of 2677)
No single metric tells the full story. See the TSE:3992 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Needs Well Inc provides application development, cloud solutions, IT related products and services, system infrastructure service and IT outsourcing services. Its services support to the development of BtoC / BtoB systems, digital marketing related system, business system, and CMS using web technology.
91GF 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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