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Nova System CoTSE:5257 +0.04%79 Gross Margin % is 20.48% as of Dec. 2025, which is 5% below its 10-year median of 21.51. GuruFocus rates TSE:5257 with a GF Score™ of 79/100 and a GF Value™ of 円3,154.39 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,685 Software companies, Nova System Co ranks worse than 80.56% on this metric.
The historical rank and industry rank for Nova System Co's Gross Margin % or its related term are showing as below:
TSE:5257'
s Gross Margin % Range Over the Past 10 Years
Min: 18.19 Med: 21.51 Max: 24.6
Current: 19.31
During the past 6 years, the highestGross Margin % of Nova System Co was 24.60%. The lowest was 18.19%. And the median was 21.51%.
TSE:5257's Gross Margin % is ranked worse than 80.56% of 2685
companies
in the Software industry
Industry Median: 40.49
vs TSE:5257: 19.31
Nova System Co had a gross margin of 20.48% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nova System Co was 0.80% per year.
Nova System Co (TSE:5257) 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
Nova System Co had a gross margin of 20.48% for the quarter that ended in Dec. 2025 => 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.
Nova System Co Gross Margin % Related Terms
Nova System Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nova System 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:5257 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Nova System 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.
Nova System Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Nova System Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nova System 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.
Nova System Co (TSE:5257) has a Gross Margin % of 20.48% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nova System Co and its competitors. This is near median its historical median of 21.51. Over the past decade, Nova System Co's Gross Margin % has ranged from 18.19 to 24.60. According to the industry distribution chart, Nova System Co ranks #2163 out of 2685 companies in the Software industry, placing it in the top 80.6%.
Is Nova System Co's Gross Margin % too high?
Nova System Co's current Gross Margin % of 20.48% is near median its 10-year median of 21.51. Over the past 10 years, this metric has ranged from a low of 18.19 to a high of 24.60. The Software industry median Gross Margin % is 40.49. Nova System Co's value of 20.48% is 49.4% below this industry median. Based on the distribution chart, Nova System Co ranks #2163 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Nova System Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nova System Co's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Nova System Co ranks #2163 out of 2685 companies for Gross Margin %. This places Nova System Co in the lower half of its industry. The industry median Gross Margin % is 40.49. Nova System Co's value of 20.48% is 49.4% below this benchmark. Historically, Nova System Co's own Gross Margin % has ranged from 18.19 to 24.60 over the past decade. While the company's 10-year median is 21.51 vs. the industry median of 40.49, Nova System 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 2,685 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. Nova System Co's current Gross Margin % of 20.48% is 49.4% 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 Nova System 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. Nova System Co's current Gross Margin % is 20.48%, which is near median its own 10-year median of 21.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova System Co stock overvalued right now?
Based on GuruFocus' analysis, Nova System Co (TSE:5257) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,154.39, compared to a current price of 円2,501.00 — trading 20.7% below its estimated fair value. The current Gross Margin % is 20.48%, which is near median its 10-year median of 21.51 and 49.4% below the Software industry median of 40.49. Nova System Co's overall GF Score™ is 79/100 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 Nova System Co (TSE:5257), the current Gross Margin % is 20.48% as of Dec. 2025. 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 Nova System Co (TSE:5257) Overvalued in 2026?
Based on GuruFocus' analysis, Nova System Co stock appears to be undervalued.
The current stock price of 円2,501.00 is trading 20.7% below its estimated GF Value™ of 円3,154.39.
GuruFocus considers Nova System Co to be Modestly Undervalued.
Key valuation signals for TSE:5257:
Gross Margin %: 20.48% (near median its 10-year median of 21.51)
GF Value™: 円3,154.39 vs. price of 円2,501.00 (20.7% below fair value)
Industry Position: 49.4% below the Software median (#2163 of 2685)
No single metric tells the full story. See the TSE:5257 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nova System Co Ltd is involved in the system integration business mainly for the financial and insurance industry, medical care and cloud service business. The Company's business is a single segment of software development business, and the services it provides are system integration and cloud services.
79GF 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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