NSWTSE:9739 -0.75%78 Gross Margin % is 20.75% as of Mar. 2026, which is 6% above its 10-year median of 19.60. GuruFocus rates TSE:9739 with a GF Score™ of 78/100 and a GF Value™ of 円3,019.74 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,680 Software companies, NSW ranks worse than 78.81% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NSW's Gross Profit for the
six
months ended in Mar. 2026 was 円5,723 Mil. NSW's Revenue for the
six
months ended in Mar. 2026 was 円27,577 Mil. Therefore, NSW's Gross Margin % for the quarter that ended in Mar. 2026 was 20.75%.
The historical rank and industry rank for NSW's Gross Margin % or its related term are showing as below:
TSE:9739'
s Gross Margin % Range Over the Past 10 Years
Min: 17.56 Med: 19.6 Max: 21.01
Current: 20.53
During the past 13 years, the highestGross Margin % of NSW was 21.01%. The lowest was 17.56%. And the median was 19.60%.
TSE:9739's Gross Margin % is ranked worse than 78.81% of 2680
companies
in the Software industry
Industry Median: 40.445
vs TSE:9739: 20.53
NSW had a gross margin of 20.75% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NSW was 1.30% per year.
NSW (TSE:9739) 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
NSW had a gross margin of 20.75% 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.
NSW Gross Margin % Related Terms
NSW Gross Margin % Historical Data
* Premium members only.
The historical data trend for NSW'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:9739 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, NSW'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.
NSW Gross Margin % vs Software Industry
For the Software industry and Technology sector, NSW's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NSW'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.
NSW (TSE:9739) has a Gross Margin % of 20.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NSW and its competitors. This is near median its historical median of 19.60. Over the past decade, NSW's Gross Margin % has ranged from 17.56 to 21.01. According to the industry distribution chart, NSW ranks #2112 out of 2680 companies in the Software industry, placing it in the top 78.8%.
Is NSW's Gross Margin % too high?
NSW's current Gross Margin % of 20.75% is near median its 10-year median of 19.60. Over the past 10 years, this metric has ranged from a low of 17.56 to a high of 21.01. The Software industry median Gross Margin % is 40.45. NSW's value of 20.75% is 48.7% below this industry median. Based on the distribution chart, NSW ranks #2112 out of 2680 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, NSW has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NSW's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NSW ranks #2112 out of 2680 companies for Gross Margin %. This places NSW in the lower half of its industry. The industry median Gross Margin % is 40.45. NSW's value of 20.75% is 48.7% below this benchmark. Historically, NSW's own Gross Margin % has ranged from 17.56 to 21.01 over the past decade. While the company's 10-year median is 19.60 vs. the industry median of 40.45, NSW 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 40.45, based on 2,680 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. NSW's current Gross Margin % of 20.75% is 48.7% 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 NSW and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NSW's current Gross Margin % is 20.75%, which is near median its own 10-year median of 19.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NSW stock overvalued right now?
Based on GuruFocus' analysis, NSW (TSE:9739) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,019.74, compared to a current price of 円2,505.00 — trading 17% below its estimated fair value. The current Gross Margin % is 20.75%, which is near median its 10-year median of 19.60 and 48.7% below the Software industry median of 40.45. NSW's overall GF Score™ is 78/100 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 NSW (TSE:9739), the current Gross Margin % is 20.75% 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 NSW (TSE:9739) Overvalued in 2026?
Based on GuruFocus' analysis, NSW stock appears to be undervalued.
The current stock price of 円2,505.00 is trading 17% below its estimated GF Value™ of 円3,019.74.
GuruFocus considers NSW to be Modestly Undervalued.
Key valuation signals for TSE:9739:
Gross Margin %: 20.75% (near median its 10-year median of 19.60)
GF Value™: 円3,019.74 vs. price of 円2,505.00 (17% below fair value)
Industry Position: 48.7% below the Software median (#2112 of 2680)
No single metric tells the full story. See the TSE:9739 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NSW Inc provides IT and embedded solutions in Japan. It offers a business solution, including consulting, system design, development, maintenance, and operational services for manufacturing, distribution, finance, insurance, and government sectors. The company also provides a range of IT services, such as designing servers and networks for optimum system performance; developing secure environments; and operating and monitoring systems via its urban and suburban data centers. The group conducts four segments, which include Enterprise Solutions, Service Solutions, Embedded Solutions, and Device Solutions.
78GF Score
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