NCD CoTSE:4783 +0.53%90 Gross Margin % is 22.56% as of Mar. 2026, which is 33% above its 10-year median of 16.95. GuruFocus rates TSE:4783 with a GF Score™ of 90/100 and a GF Value™ of 円2,409.58 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,677 Software companies, NCD Co ranks worse than 77.06% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NCD Co's Gross Profit for the
six
months ended in Mar. 2026 was 円3,594 Mil. NCD Co's Revenue for the
six
months ended in Mar. 2026 was 円15,927 Mil. Therefore, NCD Co's Gross Margin % for the quarter that ended in Mar. 2026 was 22.56%.
The historical rank and industry rank for NCD Co's Gross Margin % or its related term are showing as below:
TSE:4783'
s Gross Margin % Range Over the Past 10 Years
Min: 13.81 Med: 16.95 Max: 21.85
Current: 21.85
During the past 13 years, the highestGross Margin % of NCD Co was 21.85%. The lowest was 13.81%. And the median was 16.95%.
TSE:4783's Gross Margin % is ranked worse than 77.06% of 2677
companies
in the Software industry
Industry Median: 40.49
vs TSE:4783: 21.85
NCD Co had a gross margin of 22.56% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NCD Co was 9.80% per year.
NCD Co (TSE:4783) 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
NCD Co had a gross margin of 22.56% 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.
NCD Co Gross Margin % Related Terms
NCD Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for NCD Co'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:4783 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, NCD 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.
NCD Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, NCD Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NCD 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.
NCD Co (TSE:4783) has a Gross Margin % of 22.56% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NCD Co and its competitors. This is 33% above median its historical median of 16.95. Over the past decade, NCD Co's Gross Margin % has ranged from 13.81 to 21.85. According to the industry distribution chart, NCD Co ranks #2063 out of 2677 companies in the Software industry, placing it in the top 77.1%.
Is NCD Co's Gross Margin % too high?
NCD Co's current Gross Margin % of 22.56% is 33% above median its 10-year median of 16.95. Over the past 10 years, this metric has ranged from a low of 13.81 to a high of 21.85. The Software industry median Gross Margin % is 40.49. NCD Co's value of 22.56% is 44.3% below this industry median. Based on the distribution chart, NCD Co ranks #2063 out of 2677 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, NCD Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NCD Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NCD Co ranks #2063 out of 2677 companies for Gross Margin %. This places NCD Co in the lower half of its industry. The industry median Gross Margin % is 40.49. NCD Co's value of 22.56% is 44.3% below this benchmark. Historically, NCD Co's own Gross Margin % has ranged from 13.81 to 21.85 over the past decade. While the company's 10-year median is 16.95 vs. the industry median of 40.49, NCD 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 40.49, 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. NCD Co's current Gross Margin % of 22.56% is 44.3% 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 NCD Co 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. NCD Co's current Gross Margin % is 22.56%, which is 33% above median its own 10-year median of 16.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NCD Co stock overvalued right now?
Based on GuruFocus' analysis, NCD Co (TSE:4783) is currently considered Fairly Valued. The stock's GF Value™ is 円2,409.58, compared to a current price of 円2,478.00 — trading 2.8% above its estimated fair value. The current Gross Margin % is 22.56%, which is 33% above median its 10-year median of 16.95 and 44.3% below the Software industry median of 40.49. NCD Co's overall GF Score™ is 90/100 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 NCD Co (TSE:4783), the current Gross Margin % is 22.56% 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 NCD Co (TSE:4783) Overvalued in 2026?
Based on GuruFocus' analysis, NCD Co stock appears to be overvalued.
The current stock price of 円2,478.00 is trading 2.8% above its estimated GF Value™ of 円2,409.58.
GuruFocus considers NCD Co to be Fairly Valued.
Key valuation signals for TSE:4783:
Gross Margin %: 22.56% (33% above median its 10-year median of 16.95)
GF Value™: 円2,409.58 vs. price of 円2,478.00 (2.8% above fair value)
Industry Position: 44.3% below the Software median (#2063 of 2677)
No single metric tells the full story. See the TSE:4783 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NCD Co Ltd is engaged in IT related business. The businesses of the company are System development business that includes System Construction Solutions, Packaging Solutions, Application maintenance and operation solutions; Support & Service Business that includes Infrastructure Construction Solutions, Infrastructure maintenance and operation solutions, and Business Support Solutions; and Parking system business (bicycle parking lot related business) that includes Construction, operation and management of bicycle parking lots, Sales and operation of bicycle parking management systems, and Bicycle-related comprehensive consulting.
90GF Score
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