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FalconStor SoftwareFALC 53 Net Margin % is 47.83% as of Dec. 2025, which is 2365% above its 10-year median of 1.94. GuruFocus rates FALC with a GF Score™ of 53/100 and a GF Value™ of $1.47 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,824 Software companies, FalconStor Software ranks better than 82.47% on this metric.
FalconStor Software (OTCPK:FALC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
FalconStor Software Net Margin % Related Terms
FalconStor Software Net Margin % Historical Data
* Premium members only.
The historical data trend for FalconStor Software's Net 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.
For the Software - Application subindustry, FalconStor Software's Net Margin %, along with its competitors' market caps and Net 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.
FalconStor Software Net Margin % vs Software Industry
For the Software industry and Technology sector, FalconStor Software's Net Margin % distribution charts can be found below:
* The bar in red indicates where FalconStor Software's Net 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.
FalconStor Software (FALC) has a Net Margin % of 47.83% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on FalconStor Software and its competitors. This is 2365% above median its historical median of 1.94. According to the industry distribution chart, FalconStor Software ranks #495 out of 2824 companies in the Software industry, placing it in the top 17.5%.
Is FalconStor Software's Net Margin % too high?
FalconStor Software's current Net Margin % of 47.83% is 2365% above median its 10-year median of 1.94. The Software industry median Net Margin % is 2.62. FalconStor Software's value of 47.83% is 1725.6% above this industry median. Based on the distribution chart, FalconStor Software ranks #495 out of 2824 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, FalconStor Software has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FalconStor Software's Net Margin % compare to INUV and NVNI?
According to the Software industry distribution chart, FalconStor Software ranks #495 out of 2824 companies for Net Margin %. This places FalconStor Software in the top 18% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.62. FalconStor Software's value of 47.83% is 1725.6% above this benchmark. While the company's 10-year median is 1.94 vs. the industry median of 2.62, FalconStor Software has consistently been above 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.62, based on 2,824 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FalconStor Software's current Net Margin % of 47.83% is 1725.6% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on FalconStor Software and its competitors. For the Software industry, the median Net Margin % is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FalconStor Software's current Net Margin % is 47.83%, which is 2365% above median its own 10-year median of 1.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FalconStor Software stock overvalued right now?
Based on GuruFocus' analysis, FalconStor Software (FALC) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.47, compared to a current price of $1.84 — trading 25.2% above its estimated fair value. The current Net Margin % is 47.83%, which is 2365% above median its 10-year median of 1.94 and 1725.6% above the Software industry median of 2.62. FalconStor Software's overall GF Score™ is 53/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For FalconStor Software (FALC), the current Net Margin % is 47.83% 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 FalconStor Software (FALC) Overvalued in 2026?
Based on GuruFocus' analysis, FalconStor Software stock appears to be overvalued.
The current stock price of $1.84 is trading 25.2% above its estimated GF Value™ of $1.47.
GuruFocus considers FalconStor Software to be Modestly Overvalued.
Key valuation signals for FALC:
Net Margin %: 47.83% (2365% above median its 10-year median of 1.94)
GF Value™: $1.47 vs. price of $1.84 (25.2% above fair value)
Industry Position: 1725.6% above the Software median (#495 of 2824)
No single metric tells the full story. See the FALC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FalconStor Software Inc operates in the trusted data protection software industry, modernizing disaster recovery and backup operations for the hybrid cloud environment. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing storage costs and long-term retention needs. Its products are StorSafe, StorGuard, and StorSight, which deliver data protection, cloud migration, disaster recovery, ransomware recovery, and needs across multi-OS, multi-storage, and on-premises to cloud/hybrid cloud environments. The company's geographical markets include the Americas, which generate the highest revenue, Europe, the Middle East, Africa, and others.
53GF Score
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