System DTSE:3804 +2.20%81 Net Margin % is 13.55% as of Apr. 2026, which is 11% above its 10-year median of 12.24. GuruFocus rates TSE:3804 with a GF Score™ of 81/100 and a GF Value™ of 円549.80 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,824 Software companies, System D ranks better than 78.4% on this metric.
Net margin is calculated as Net Income divided by its Revenue. System D's Net Income for the
six
months ended in Apr. 2026 was 円410 Mil. System D's Revenue for the
six
months ended in Apr. 2026 was 円3,028 Mil. Therefore, System D's net margin for the quarter that ended in Apr. 2026 was 13.55%.
The historical rank and industry rank for System D's Net Margin % or its related term are showing as below:
TSE:3804'
s Net Margin % Range Over the Past 10 Years
Min: 4.31 Med: 12.24 Max: 14.93
Current: 11.25
TSE:3804's Net Margin % is ranked better than 78.4% of 2824
companies
in the Software industry
Industry Median: 2.525
vs TSE:3804: 11.25
System D (TSE:3804) 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.
System D Net Margin % Related Terms
System D Net Margin % Historical Data
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The historical data trend for System D'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:3804 vs CRM, SHOP, UBER: Net Margin % Comparison
For the Software - Application subindustry, System D'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.
System D Net Margin % vs Software Industry
For the Software industry and Technology sector, System D's Net Margin % distribution charts can be found below:
* The bar in red indicates where System D'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.
System D (TSE:3804) has a Net Margin % of 13.55% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on System D and its competitors. This is 11% above median its historical median of 12.24. Over the past decade, System D's Net Margin % has ranged from 4.31 to 14.93. According to the industry distribution chart, System D ranks #610 out of 2824 companies in the Software industry, placing it in the top 21.6%.
Is System D's Net Margin % too high?
System D's current Net Margin % of 13.55% is 11% above median its 10-year median of 12.24. Over the past 10 years, this metric has ranged from a low of 4.31 to a high of 14.93. The Software industry median Net Margin % is 2.53. System D's value of 13.55% is 436.6% above this industry median. Based on the distribution chart, System D ranks #610 out of 2824 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, System D has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does System D's Net Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, System D ranks #610 out of 2824 companies for Net Margin %. This places System D in the top 22% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.53. System D's value of 13.55% is 436.6% above this benchmark. Historically, System D's own Net Margin % has ranged from 4.31 to 14.93 over the past decade. While the company's 10-year median is 12.24 vs. the industry median of 2.53, System D 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. System D's current Net Margin % of 13.55% is 436.6% 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 System D 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. System D's current Net Margin % is 13.55%, which is 11% above median its own 10-year median of 12.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is System D stock overvalued right now?
Based on GuruFocus' analysis, System D (TSE:3804) is currently considered Modestly Undervalued. The stock's GF Value™ is 円549.80, compared to a current price of 円419.00 — trading 23.8% below its estimated fair value. The current Net Margin % is 13.55%, which is 11% above median its 10-year median of 12.24 and 436.6% above the Software industry median of 2.53. System D's overall GF Score™ is 81/100 with 3 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 System D (TSE:3804), the current Net Margin % is 13.55% as of Apr. 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 System D (TSE:3804) Overvalued in 2026?
Based on GuruFocus' analysis, System D stock appears to be undervalued.
The current stock price of 円419.00 is trading 23.8% below its estimated GF Value™ of 円549.80.
GuruFocus considers System D to be Modestly Undervalued.
Key valuation signals for TSE:3804:
Net Margin %: 13.55% (11% above median its 10-year median of 12.24)
GF Value™: 円549.80 vs. price of 円419.00 (23.8% below fair value)
Industry Position: 436.6% above the Software median (#610 of 2824)
No single metric tells the full story. See the TSE:3804 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
System D Inc creates industry-specialized package software. The software development serves the schools, fitness clubs, distributors and other institutions. Its products and services include: Campus Plan, School Engine, PPP, Public Property Management System, Common Financial Accounting System, Smart Hello/Hello EX, Smart Hello Ticket/Hello Fun, Regulations Management System, and Contract creation and management system.
81GF Score
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