Nihon Enterprise Co (TSE:4829) Gross Margin %: 34.41% (As of May. 2026) — 15% Below Median

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TSE:4829 Nihon Enterprise Co Ltd TSE:4829
64 GF Score
Price 円112.00
GF Value 円121.28
Valuation Fairly Valued
! 4 Warning Signs
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What is Nihon Enterprise Co Gross Margin %?

Nihon Enterprise Co TSE:4829 64 Gross Margin % is 34.41% as of May. 2026, which is 15% below its 10-year median of 40.44. GuruFocus rates TSE:4829 with a GF Score™ of 64/100 and a GF Value™ of 円121.28 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,687 Software companies, Nihon Enterprise Co ranks worse than 57.28% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Nihon Enterprise Co's Gross Profit for the six months ended in May. 2026 was 円784 Mil. Nihon Enterprise Co's Revenue for the six months ended in May. 2026 was 円2,277 Mil. Therefore, Nihon Enterprise Co's Gross Margin % for the quarter that ended in May. 2026 was 34.41%.

Warning Sign:

Nihon Enterprise Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.5%.


The historical rank and industry rank for Nihon Enterprise Co's Gross Margin % or its related term are showing as below:

TSE:4829' s Gross Margin % Range Over the Past 10 Years
Min: 34.59   Med: 40.44   Max: 45.61
Current: 34.59


During the past 13 years, the highest Gross Margin % of Nihon Enterprise Co was 45.61%. The lowest was 34.59%. And the median was 40.44%.

TSE:4829's Gross Margin % is ranked worse than
57.28% of 2687 companies
in the Software industry
Industry Median: 40.62 vs TSE:4829: 34.59

Nihon Enterprise Co had a gross margin of 34.41% for the quarter that ended in May. 2026 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Nihon Enterprise Co was -3.50% per year.


Nihon Enterprise Co  (TSE:4829) 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

Nihon Enterprise Co had a gross margin of 34.41% for the quarter that ended in May. 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.


Nihon Enterprise Co Gross Margin % Related Terms


Nihon Enterprise Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Nihon Enterprise 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.

Nihon Enterprise Co Gross Margin % Chart

Nihon Enterprise Co Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.03 40.22 36.72 36.86 34.59

Nihon Enterprise Co Semi-Annual Data
Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25 May26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.97 35.67 37.97 34.77 34.41

TSE:4829 vs QH, SHOP, UBER: Gross Margin % Comparison

For the Software - Application subindustry, Nihon Enterprise 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.


Nihon Enterprise Co Gross Margin % vs Software Industry

For the Software industry and Technology sector, Nihon Enterprise Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Nihon Enterprise Co's Gross Margin % falls into.


TSE:4829
64GF Score
Nihon Enterprise Co Ltd TSE:4829
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nihon Enterprise Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Nihon Enterprise Co's Gross Margin for the fiscal year that ended in May. 2026 is calculated as

Gross Margin % (A: May. 2026 )=Gross Profit (A: May. 2026 ) / Revenue (A: May. 2026 )
=1544.9 / 4466.872
=(Revenue - Cost of Goods Sold) / Revenue
=(4466.872 - 2921.963) / 4466.872
=34.59 %

Nihon Enterprise Co's Gross Margin for the quarter that ended in May. 2026 is calculated as


Gross Margin % (Q: May. 2026 )=Gross Profit (Q: May. 2026 ) / Revenue (Q: May. 2026 )
=783.5 / 2276.97
=(Revenue - Cost of Goods Sold) / Revenue
=(2276.97 - 1493.452) / 2276.97
=34.41 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 34.41% mean?
Nihon Enterprise Co (TSE:4829) has a Gross Margin % of 34.41% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nihon Enterprise Co and its competitors. This is 15% below median its historical median of 40.44. Over the past decade, Nihon Enterprise Co's Gross Margin % has ranged from 34.59 to 45.61. According to the industry distribution chart, Nihon Enterprise Co ranks #1539 out of 2687 companies in the Software industry, placing it in the top 57.3%.
Is Nihon Enterprise Co's Gross Margin % too high?
Nihon Enterprise Co's current Gross Margin % of 34.41% is 15% below median its 10-year median of 40.44. Over the past 10 years, this metric has ranged from a low of 34.59 to a high of 45.61. The Software industry median Gross Margin % is 40.62. Nihon Enterprise Co's value of 34.41% is 15.3% below this industry median. Based on the distribution chart, Nihon Enterprise Co ranks #1539 out of 2687 companies in the Software industry, which is below the industry midpoint. Overall, Nihon Enterprise Co has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nihon Enterprise Co's Gross Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Nihon Enterprise Co ranks #1539 out of 2687 companies for Gross Margin %. This places Nihon Enterprise Co in the lower half of its industry. The industry median Gross Margin % is 40.62. Nihon Enterprise Co's value of 34.41% is 15.3% below this benchmark. Historically, Nihon Enterprise Co's own Gross Margin % has ranged from 34.59 to 45.61 over the past decade. While the company's 10-year median is 40.44 vs. the industry median of 40.62, Nihon Enterprise 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 40.62, based on 2,687 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. Nihon Enterprise Co's current Gross Margin % of 34.41% is 15.3% 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 Nihon Enterprise Co and its competitors. For the Software industry, the median Gross Margin % is 40.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Enterprise Co's current Gross Margin % is 34.41%, which is 15% below median its own 10-year median of 40.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Enterprise Co (TSE:4829) is currently considered Fairly Valued. The stock's GF Value™ is 円121.28, compared to a current price of 円112.00 — trading 7.7% below its estimated fair value. The current Gross Margin % is 34.41%, which is 15% below median its 10-year median of 40.44 and 15.3% below the Software industry median of 40.62. Nihon Enterprise Co's overall GF Score™ is 64/100 with 4 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 Nihon Enterprise Co (TSE:4829), the current Gross Margin % is 34.41% as of May. 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 Nihon Enterprise Co (TSE:4829) Overvalued in 2026?

Based on GuruFocus' analysis, Nihon Enterprise Co stock appears to be undervalued. The current stock price of 円112.00 is trading 7.7% below its estimated GF Value™ of 円121.28. GuruFocus considers Nihon Enterprise Co to be Fairly Valued.

Key valuation signals for TSE:4829:

  • Gross Margin %: 34.41% (15% below median its 10-year median of 40.44)
  • GF Value™: 円121.28 vs. price of 円112.00 (7.7% below fair value)
  • GF Score™: 64/100 with 4 warning signs
  • Industry Position: 15.3% below the Software median (#1539 of 2687)

No single metric tells the full story. See the TSE:4829 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nihon Enterprise Co Business Description

Address Matsuoka Shibuya Building 1-17-8 Shibuya, Shibuya-ku, Tokyo, JPN, 150-0002
Nihon Enterprise Co Ltd is engaged in the planning, development, and management of smartphone apps for consumers, development and sale of business support applications, cloud services, contract development of applications, and advertisement proxy services.
64GF Score

Get the complete analysis for TSE:4829

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円112.00
Price
円121.28
GF Value