NEC (NECPY) Moat Score: 5/10 (As of Jul. 03, 2026)


NECPY NEC Corp NECPY
65 GF Score
Price $12.48
GF Value $9.25
Valuation Significantly Overvalued
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What is NEC Moat Score?

NEC NECPY +1.05% 65 Moat Score is 5 as of Jul. 03, 2026. GuruFocus rates NECPY with a GF Score™ of 65/100 and a GF Value™ of $9.25 (Significantly Overvalued). Among 2,844 Software companies, NEC ranks better than 94.8% on this metric.

NEC has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

NEC has Narrow Moat: NEC Corp benefits from valuable intellectual property and a strong brand in technology and communications. It has moderate market share and some customer loyalty, but faces intense competition and lacks significant network effects or cost advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes NEC might have Narrow Moat - Solid narrow moat.

NEC  (OTCPK:NECPY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

NEC Moat Score Related Terms

NECPY vs IBM, ACN, FISV: Moat Score Comparison

For the Information Technology Services subindustry, NEC's Moat Score, along with its competitors' market caps and Moat Score 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.

NEC Moat Score vs Software Industry

For the Software industry and Technology sector, NEC's Moat Score distribution charts can be found below:

* The bar in red indicates where NEC's Moat Score falls into.


NECPY
65GF Score
NEC Corp NECPY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
NEC (NECPY) has a Moat Score of 5 as of Jul. 03, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, NEC ranks #148 out of 2844 companies in the Software industry, placing it in the top 5.2%.
Is NEC's Moat Score too high?
NEC's current Moat Score is 5. Based on the distribution chart, NEC ranks #148 out of 2844 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, NEC has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NEC's Moat Score compare to IBM and ACN?
According to the Software industry distribution chart, NEC ranks #148 out of 2844 companies for Moat Score. This places NEC in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. NEC's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEC stock overvalued right now?
Based on GuruFocus' analysis, NEC (NECPY) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.25, compared to a current price of $12.48 — trading 34.9% above its estimated fair value. The current Moat Score is 5. NEC's overall GF Score™ is 65/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For NEC (NECPY), the current Moat Score is 5 as of Jul. 03, 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 NEC (NECPY) Overvalued in 2026?

Based on GuruFocus' analysis, NEC stock appears to be overvalued. The current stock price of $12.48 is trading 34.9% above its estimated GF Value™ of $9.25. GuruFocus considers NEC to be Significantly Overvalued.

Key valuation signals for NECPY:

  • Moat Score: 5
  • GF Value™: $9.25 vs. price of $12.48 (34.9% above fair value)
  • GF Score™: 65/100

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

NEC Business Description

Address 7-1, Shiba 5-chome, Minato-ku, Tokyo, JPN, 108-8001
NEC Corp is engaged in IT services, networks, social infrastructure, and solutions. The company operates through three segments: IT Services, Social Infrastructure, and Others. The IT Services segment provides system integration, consulting, maintenance, outsourcing, cloud services, system equipment, and software services. The Social Infrastructure segment offers network infrastructure, including core networks, mobile base stations, optical transmission systems, and marine systems, along with telecom software, OSS/BSS solutions, aerospace and defense system integration, and maintenance. The Others segment covers the development, manufacturing, and sales of system equipment. It generates the majority of its revenue from the IT Services segment.
65GF Score

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$12.48
Price
$9.25
GF Value