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User LocalTSE:3984 +0.72%88 Net Margin % is 34.69% as of Mar. 2026, which is 23% above its 10-year median of 28.21. GuruFocus rates TSE:3984 with a GF Score™ of 88/100 and a GF Value™ of 円2,652.30 (Significantly Undervalued). Among 2,832 Software companies, User Local ranks better than 95.34% on this metric.
Net margin is calculated as Net Income divided by its Revenue. User Local's Net Income for the
three
months ended in Mar. 2026 was 円470 Mil. User Local's Revenue for the
three
months ended in Mar. 2026 was 円1,354 Mil. Therefore, User Local's net margin for the quarter that ended in Mar. 2026 was 34.69%.
The historical rank and industry rank for User Local's Net Margin % or its related term are showing as below:
TSE:3984'
s Net Margin % Range Over the Past 10 Years
Min: 24.4 Med: 28.21 Max: 31.2
Current: 30.6
TSE:3984's Net Margin % is ranked better than 95.34% of 2832
companies
in the Software industry
Industry Median: 2.655
vs TSE:3984: 30.60
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.
User Local Net Margin % Related Terms
User Local Net Margin % Historical Data
* Premium members only.
The historical data trend for User Local'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:3984 vs IBM, ACN, FISV: Net Margin % Comparison
For the Information Technology Services subindustry, User Local'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.
User Local Net Margin % vs Software Industry
For the Software industry and Technology sector, User Local's Net Margin % distribution charts can be found below:
* The bar in red indicates where User Local'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.
User Local (TSE:3984) has a Net Margin % of 34.69% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on User Local and its competitors. This is 23% above median its historical median of 28.21. Over the past decade, User Local's Net Margin % has ranged from 24.40 to 31.20. According to the industry distribution chart, User Local ranks #132 out of 2832 companies in the Software industry, placing it in the top 4.7%.
Is User Local's Net Margin % too high?
User Local's current Net Margin % of 34.69% is 23% above median its 10-year median of 28.21. Over the past 10 years, this metric has ranged from a low of 24.40 to a high of 31.20. The Software industry median Net Margin % is 2.66. User Local's value of 34.69% is 1206.6% above this industry median. Based on the distribution chart, User Local ranks #132 out of 2832 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, User Local has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does User Local's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, User Local ranks #132 out of 2832 companies for Net Margin %. This places User Local in the top 5% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.66. User Local's value of 34.69% is 1206.6% above this benchmark. Historically, User Local's own Net Margin % has ranged from 24.40 to 31.20 over the past decade. While the company's 10-year median is 28.21 vs. the industry median of 2.66, User Local 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 2.66, based on 2,832 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. User Local's current Net Margin % of 34.69% is 1206.6% 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 User Local and its competitors. For the Software industry, the median Net Margin % is 2.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. User Local's current Net Margin % is 34.69%, which is 23% above median its own 10-year median of 28.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is User Local stock overvalued right now?
Based on GuruFocus' analysis, User Local (TSE:3984) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,652.30, compared to a current price of 円1,535.00 — trading 42.1% below its estimated fair value. The current Net Margin % is 34.69%, which is 23% above median its 10-year median of 28.21 and 1206.6% above the Software industry median of 2.66. User Local's overall GF Score™ is 88/100. 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 User Local (TSE:3984), the current Net Margin % is 34.69% 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 User Local (TSE:3984) Overvalued in 2026?
Based on GuruFocus' analysis, User Local stock appears to be undervalued.
The current stock price of 円1,535.00 is trading 42.1% below its estimated GF Value™ of 円2,652.30.
GuruFocus considers User Local to be Significantly Undervalued.
Key valuation signals for TSE:3984:
Net Margin %: 34.69% (23% above median its 10-year median of 28.21)
GF Value™: 円2,652.30 vs. price of 円1,535.00 (42.1% below fair value)
Industry Position: 1206.6% above the Software median (#132 of 2832)
No single metric tells the full story. See the TSE:3984 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
User Local Inc is engaged in the research and development of big data analysis system, web marketing support tool, offering media analysis tool, and managing artificial intelligence chat bot.
88GF Score
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