PKSHA TechnologyTSE:3993 -4.20%83 Net Margin % is 9.44% as of Mar. 2026, which is 23% below its 10-year median of 12.33. GuruFocus rates TSE:3993 with a GF Score™ of 83/100 and a GF Value™ of 円6,678.63 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,827 Software companies, PKSHA Technology ranks better than 69.72% on this metric.
The historical rank and industry rank for PKSHA Technology's Net Margin % or its related term are showing as below:
TSE:3993'
s Net Margin % Range Over the Past 10 Years
Min: 0.03 Med: 12.33 Max: 40.66
Current: 8.05
TSE:3993's Net Margin % is ranked better than 69.72% of 2827
companies
in the Software industry
Industry Median: 2.54
vs TSE:3993: 8.05
PKSHA Technology (TSE:3993) 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.
PKSHA Technology Net Margin % Related Terms
PKSHA Technology Net Margin % Historical Data
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The historical data trend for PKSHA Technology'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:3993 vs MSFT, ORCL, PLTR: Net Margin % Comparison
For the Software - Infrastructure subindustry, PKSHA Technology'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.
PKSHA Technology Net Margin % vs Software Industry
For the Software industry and Technology sector, PKSHA Technology's Net Margin % distribution charts can be found below:
* The bar in red indicates where PKSHA Technology'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.
PKSHA Technology (TSE:3993) has a Net Margin % of 9.44% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on PKSHA Technology and its competitors. This is 23% below median its historical median of 12.33. Over the past decade, PKSHA Technology's Net Margin % has ranged from 0.03 to 40.66. According to the industry distribution chart, PKSHA Technology ranks #856 out of 2827 companies in the Software industry, placing it in the top 30.3%.
Is PKSHA Technology's Net Margin % too high?
PKSHA Technology's current Net Margin % of 9.44% is 23% below median its 10-year median of 12.33. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 40.66. The Software industry median Net Margin % is 2.54. PKSHA Technology's value of 9.44% is 271.7% above this industry median. Based on the distribution chart, PKSHA Technology ranks #856 out of 2827 companies in the Software industry, which is above the industry midpoint. Overall, PKSHA Technology has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PKSHA Technology's Net Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, PKSHA Technology ranks #856 out of 2827 companies for Net Margin %. This puts PKSHA Technology in the upper half of its industry. The industry median Net Margin % is 2.54. PKSHA Technology's value of 9.44% is 271.7% above this benchmark. Historically, PKSHA Technology's own Net Margin % has ranged from 0.03 to 40.66 over the past decade. While the company's 10-year median is 12.33 vs. the industry median of 2.54, PKSHA Technology 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 2.54, based on 2,827 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. PKSHA Technology's current Net Margin % of 9.44% is 271.7% 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 PKSHA Technology and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PKSHA Technology's current Net Margin % is 9.44%, which is 23% below median its own 10-year median of 12.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PKSHA Technology stock overvalued right now?
Based on GuruFocus' analysis, PKSHA Technology (TSE:3993) is currently considered Possible Value Trap. The stock's GF Value™ is 円6,678.63, compared to a current price of 円2,512.00 — trading 62.4% below its estimated fair value. The current Net Margin % is 9.44%, which is 23% below median its 10-year median of 12.33 and 271.7% above the Software industry median of 2.54. PKSHA Technology's overall GF Score™ is 83/100 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 PKSHA Technology (TSE:3993), the current Net Margin % is 9.44% 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 PKSHA Technology (TSE:3993) Overvalued in 2026?
Based on GuruFocus' analysis, PKSHA Technology stock appears to be undervalued.
The current stock price of 円2,512.00 is trading 62.4% below its estimated GF Value™ of 円6,678.63.
GuruFocus considers PKSHA Technology to be Possible Value Trap.
Key valuation signals for TSE:3993:
Net Margin %: 9.44% (23% below median its 10-year median of 12.33)
GF Value™: 円6,678.63 vs. price of 円2,512.00 (62.4% below fair value)
Industry Position: 271.7% above the Software median (#856 of 2827)
No single metric tells the full story. See the TSE:3993 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PKSHA Technology Inc develops algorithm solutions mainly related to natural language processing, image recognition, machine learning / deep learning technology. These algorithm modules are integrated and operate on a variety of software and hardware. The group operates in two segments: AI Research & Solution Business and AI SaaS Business.
83GF Score
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