Digital ArtsTSE:2326 +0.27%79 Net Margin % is 36.63% as of Mar. 2026, which is 19% above its 10-year median of 30.90. GuruFocus rates TSE:2326 with a GF Score™ of 79/100 and a GF Value™ of 円6,219.31 (Significantly Undervalued). Among 2,824 Software companies, Digital Arts ranks better than 95.89% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Digital Arts's Net Income for the
three
months ended in Mar. 2026 was 円1,099 Mil. Digital Arts's Revenue for the
three
months ended in Mar. 2026 was 円3,000 Mil. Therefore, Digital Arts's net margin for the quarter that ended in Mar. 2026 was 36.63%.
The historical rank and industry rank for Digital Arts's Net Margin % or its related term are showing as below:
TSE:2326'
s Net Margin % Range Over the Past 10 Years
Min: 22.24 Med: 30.9 Max: 38.02
Current: 31.63
TSE:2326's Net Margin % is ranked better than 95.89% of 2824
companies
in the Software industry
Industry Median: 2.525
vs TSE:2326: 31.63
Digital Arts (TSE:2326) 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.
Digital Arts Net Margin % Related Terms
Digital Arts Net Margin % Historical Data
* Premium members only.
The historical data trend for Digital Arts'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.
TSE:2326 vs MSFT, ORCL, PLTR: Net Margin % Comparison
For the Software - Infrastructure subindustry, Digital Arts'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.
Digital Arts Net Margin % vs Software Industry
For the Software industry and Technology sector, Digital Arts's Net Margin % distribution charts can be found below:
* The bar in red indicates where Digital Arts'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.
Digital Arts (TSE:2326) has a Net Margin % of 36.63% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Digital Arts and its competitors. This is 19% above median its historical median of 30.90. Over the past decade, Digital Arts' Net Margin % has ranged from 22.24 to 38.02. According to the industry distribution chart, Digital Arts ranks #116 out of 2824 companies in the Software industry, placing it in the top 4.1%.
Is Digital Arts' Net Margin % too high?
Digital Arts' current Net Margin % of 36.63% is 19% above median its 10-year median of 30.90. Over the past 10 years, this metric has ranged from a low of 22.24 to a high of 38.02. The Software industry median Net Margin % is 2.53. Digital Arts' value of 36.63% is 1350.7% above this industry median. Based on the distribution chart, Digital Arts ranks #116 out of 2824 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Digital Arts has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Arts' Net Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Digital Arts ranks #116 out of 2824 companies for Net Margin %. This places Digital Arts in the top 4% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.53. Digital Arts' value of 36.63% is 1350.7% above this benchmark. Historically, Digital Arts' own Net Margin % has ranged from 22.24 to 38.02 over the past decade. While the company's 10-year median is 30.90 vs. the industry median of 2.53, Digital Arts 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 2.53, 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. Digital Arts's current Net Margin % of 36.63% is 1350.7% 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 Digital Arts and its competitors. For the Software industry, the median Net Margin % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Arts's current Net Margin % is 36.63%, which is 19% above median its own 10-year median of 30.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Arts stock overvalued right now?
Based on GuruFocus' analysis, Digital Arts (TSE:2326) is currently considered Significantly Undervalued. The stock's GF Value™ is 円6,219.31, compared to a current price of 円3,705.00 — trading 40.4% below its estimated fair value. The current Net Margin % is 36.63%, which is 19% above median its 10-year median of 30.90 and 1350.7% above the Software industry median of 2.53. Digital Arts' overall GF Score™ is 79/100. 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 Digital Arts (TSE:2326), the current Net Margin % is 36.63% 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 Digital Arts (TSE:2326) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Arts stock appears to be undervalued.
The current stock price of 円3,705.00 is trading 40.4% below its estimated GF Value™ of 円6,219.31.
GuruFocus considers Digital Arts to be Significantly Undervalued.
Key valuation signals for TSE:2326:
Net Margin %: 36.63% (19% above median its 10-year median of 30.90)
GF Value™: 円6,219.31 vs. price of 円3,705.00 (40.4% below fair value)
Industry Position: 1350.7% above the Software median (#116 of 2824)
No single metric tells the full story. See the TSE:2326 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Arts Inc develops Internet filtering software for business, private, and educational use. Its products protect users and networks from harmful Internet content and prevent inappropriate usage. Its software products are supplied to the corporate, public-sector (government ministries and agencies and schools), and consumer markets.
79GF Score
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