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NexToneTSE:7094 +1.19%82 Gross Margin % is 26.00% as of Mar. 2026, which is 5% below its 10-year median of 27.29. GuruFocus rates TSE:7094 with a GF Score™ of 82/100 and a GF Value™ of 円2,282.08 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,008 Business Services companies, NexTone ranks worse than 65.87% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NexTone's Gross Profit for the
six
months ended in Mar. 2026 was 円2,732 Mil. NexTone's Revenue for the
six
months ended in Mar. 2026 was 円10,507 Mil. Therefore, NexTone's Gross Margin % for the quarter that ended in Mar. 2026 was 26.00%.
Warning Sign:
NexTone Inc gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for NexTone's Gross Margin % or its related term are showing as below:
TSE:7094'
s Gross Margin % Range Over the Past 10 Years
Min: 24.87 Med: 27.29 Max: 30.32
Current: 25.59
During the past 9 years, the highestGross Margin % of NexTone was 30.32%. The lowest was 24.87%. And the median was 27.29%.
TSE:7094's Gross Margin % is ranked worse than 65.87% of 1008
companies
in the Business Services industry
Industry Median: 34.515
vs TSE:7094: 25.59
NexTone had a gross margin of 26.00% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NexTone was -1.50% per year.
NexTone (TSE:7094) 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
NexTone had a gross margin of 26.00% 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.
NexTone Gross Margin % Related Terms
NexTone Gross Margin % Historical Data
* Premium members only.
The historical data trend for NexTone'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:7094 vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, NexTone'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.
NexTone Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, NexTone's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NexTone'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.
NexTone (TSE:7094) has a Gross Margin % of 26.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NexTone and its competitors. This is near median its historical median of 27.29. Over the past decade, NexTone's Gross Margin % has ranged from 24.87 to 30.32. According to the industry distribution chart, NexTone ranks #664 out of 1008 companies in the Business Services industry, placing it in the top 65.9%.
Is NexTone's Gross Margin % too high?
NexTone's current Gross Margin % of 26.00% is near median its 10-year median of 27.29. Over the past 10 years, this metric has ranged from a low of 24.87 to a high of 30.32. The Business Services industry median Gross Margin % is 34.52. NexTone's value of 26.00% is 24.7% below this industry median. Based on the distribution chart, NexTone ranks #664 out of 1008 companies in the Business Services industry, which is below the industry midpoint. Overall, NexTone has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NexTone's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, NexTone ranks #664 out of 1008 companies for Gross Margin %. This places NexTone in the lower half of its industry. The industry median Gross Margin % is 34.52. NexTone's value of 26.00% is 24.7% below this benchmark. Historically, NexTone's own Gross Margin % has ranged from 24.87 to 30.32 over the past decade. While the company's 10-year median is 27.29 vs. the industry median of 34.52, NexTone 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.52, based on 1,008 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. NexTone's current Gross Margin % of 26.00% is 24.7% 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 NexTone and its competitors. For the Business Services industry, the median Gross Margin % is 34.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NexTone's current Gross Margin % is 26.00%, which is near median its own 10-year median of 27.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NexTone stock overvalued right now?
Based on GuruFocus' analysis, NexTone (TSE:7094) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,282.08, compared to a current price of 円1,448.00 — trading 36.5% below its estimated fair value. The current Gross Margin % is 26.00%, which is near median its 10-year median of 27.29 and 24.7% below the Business Services industry median of 34.52. NexTone's overall GF Score™ is 82/100 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 NexTone (TSE:7094), the current Gross Margin % is 26.00% 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 NexTone (TSE:7094) Overvalued in 2026?
Based on GuruFocus' analysis, NexTone stock appears to be undervalued.
The current stock price of 円1,448.00 is trading 36.5% below its estimated GF Value™ of 円2,282.08.
GuruFocus considers NexTone to be Significantly Undervalued.
Key valuation signals for TSE:7094:
Gross Margin %: 26.00% (near median its 10-year median of 27.29)
GF Value™: 円2,282.08 vs. price of 円1,448.00 (36.5% below fair value)
Industry Position: 24.7% below the Business Services median (#664 of 1008)
No single metric tells the full story. See the TSE:7094 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NexTone Inc is a provider of solutions for rights holders offering flexible copyright management and licensing, transparent operations and processing, and equitable royalty distribution. The company provides copyright management services for the right holders and music users. Its business support services include digital content service, casting service, services for music users, and system development services.
82GF 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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