Encourage Technologies CoTSE:3682 75 Net Margin % is 8.95% as of Mar. 2026, which is 2% above its 10-year median of 8.78. GuruFocus rates TSE:3682 with a GF Score™ of 75/100 and a GF Value™ of 円640.96 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,820 Software companies, Encourage Technologies Co ranks better than 70.25% on this metric.
The historical rank and industry rank for Encourage Technologies Co's Net Margin % or its related term are showing as below:
TSE:3682'
s Net Margin % Range Over the Past 10 Years
Min: 6.04 Med: 8.78 Max: 18
Current: 8.23
TSE:3682's Net Margin % is ranked better than 70.25% of 2820
companies
in the Software industry
Industry Median: 2.61
vs TSE:3682: 8.23
Encourage Technologies Co (TSE:3682) 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.
Encourage Technologies Co Net Margin % Related Terms
Encourage Technologies Co Net Margin % Historical Data
* 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:3682 vs IBM, ACN, FISV: Net Margin % Comparison
For the Information Technology Services subindustry, Encourage Technologies Co'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.
Encourage Technologies Co Net Margin % vs Software Industry
For the Software industry and Technology sector, Encourage Technologies Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Encourage Technologies Co'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.
Encourage Technologies Co (TSE:3682) has a Net Margin % of 8.95% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Encourage Technologies Co and its competitors. This is near median its historical median of 8.78. Over the past decade, Encourage Technologies Co's Net Margin % has ranged from 6.04 to 18.00. According to the industry distribution chart, Encourage Technologies Co ranks #839 out of 2820 companies in the Software industry, placing it in the top 29.8%.
Is Encourage Technologies Co's Net Margin % too high?
Encourage Technologies Co's current Net Margin % of 8.95% is near median its 10-year median of 8.78. Over the past 10 years, this metric has ranged from a low of 6.04 to a high of 18.00. The Software industry median Net Margin % is 2.61. Encourage Technologies Co's value of 8.95% is 242.9% above this industry median. Based on the distribution chart, Encourage Technologies Co ranks #839 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Encourage Technologies Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Encourage Technologies Co's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Encourage Technologies Co ranks #839 out of 2820 companies for Net Margin %. This puts Encourage Technologies Co in the upper half of its industry. The industry median Net Margin % is 2.61. Encourage Technologies Co's value of 8.95% is 242.9% above this benchmark. Historically, Encourage Technologies Co's own Net Margin % has ranged from 6.04 to 18.00 over the past decade. While the company's 10-year median is 8.78 vs. the industry median of 2.61, Encourage Technologies Co 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 2.61, based on 2,820 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. Encourage Technologies Co's current Net Margin % of 8.95% is 242.9% 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 Encourage Technologies Co and its competitors. For the Software industry, the median Net Margin % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encourage Technologies Co's current Net Margin % is 8.95%, which is near median its own 10-year median of 8.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encourage Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Encourage Technologies Co (TSE:3682) is currently considered Fairly Valued. The stock's GF Value™ is 円640.96, compared to a current price of 円600.00 — trading 6.4% below its estimated fair value. The current Net Margin % is 8.95%, which is near median its 10-year median of 8.78 and 242.9% above the Software industry median of 2.61. Encourage Technologies Co's overall GF Score™ is 75/100 with 4 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 Encourage Technologies Co (TSE:3682), the current Net Margin % is 8.95% 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 Encourage Technologies Co (TSE:3682) Overvalued in 2026?
Based on GuruFocus' analysis, Encourage Technologies Co stock appears to be undervalued.
The current stock price of 円600.00 is trading 6.4% below its estimated GF Value™ of 円640.96.
GuruFocus considers Encourage Technologies Co to be Fairly Valued.
Key valuation signals for TSE:3682:
Net Margin %: 8.95% (near median its 10-year median of 8.78)
GF Value™: 円640.96 vs. price of 円600.00 (6.4% below fair value)
Industry Position: 242.9% above the Software median (#839 of 2820)
No single metric tells the full story. See the TSE:3682 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encourage Technologies Co Ltd develops software that monitors and audits user activity in IT systems. The company also provides maintenance support after the installation of the software as well consulting services.
75GF Score
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