Tokai Soft Co (TSE:4430) Net Margin %: 7.34% (As of Feb. 2026) — 21% Above Median

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TSE:4430 Tokai Soft Co Ltd TSE:4430
85 GF Score
Price 円1,655.00
GF Value 円1,975.09
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Tokai Soft Co Net Margin %?

Tokai Soft Co TSE:4430 -0.30% 85 Net Margin % is 7.34% as of Feb. 2026, which is 21% above its 10-year median of 6.05. GuruFocus rates TSE:4430 with a GF Score™ of 85/100 and a GF Value™ of 円1,975.09 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,833 Software companies, Tokai Soft Co ranks better than 69.04% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Tokai Soft Co's Net Income for the three months ended in Feb. 2026 was 円222 Mil. Tokai Soft Co's Revenue for the three months ended in Feb. 2026 was 円3,026 Mil. Therefore, Tokai Soft Co's net margin for the quarter that ended in Feb. 2026 was 7.34%.

The historical rank and industry rank for Tokai Soft Co's Net Margin % or its related term are showing as below:

TSE:4430' s Net Margin % Range Over the Past 10 Years
Min: 2.88   Med: 6.05   Max: 8.43
Current: 7.84


TSE:4430's Net Margin % is ranked better than
69.04% of 2833 companies
in the Software industry
Industry Median: 2.64 vs TSE:4430: 7.84

Tokai Soft Co  (TSE:4430) 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.


Tokai Soft Co Net Margin % Related Terms


Tokai Soft Co Net Margin % Historical Data

* Premium members only.

The historical data trend for Tokai Soft Co'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.

Tokai Soft Co Net Margin % Chart

Tokai Soft Co Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.06 8.08 8.43 7.62 7.79

Tokai Soft Co Quarterly Data
Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 May25 Aug25 Nov25 Feb26 May26
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 8.30 0.00 7.34 7.89

TSE:4430 vs MSFT, ORCL, PLTR: Net Margin % Comparison

For the Software - Infrastructure subindustry, Tokai Soft 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.


Tokai Soft Co Net Margin % vs Software Industry

For the Software industry and Technology sector, Tokai Soft Co's Net Margin % distribution charts can be found below:

* The bar in red indicates where Tokai Soft Co's Net Margin % falls into.


TSE:4430
85GF Score
Tokai Soft Co Ltd TSE:4430
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tokai Soft Co Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Tokai Soft Co's Net Margin for the fiscal year that ended in May. 2026 is calculated as

Net Margin=Net Income (A: May. 2026 )/Revenue (A: May. 2026 )
=956.857/12285.207
=7.79 %

Tokai Soft Co's Net Margin for the quarter that ended in Feb. 2026 is calculated as

Net Margin=Net Income (Q: Feb. 2026 )/Revenue (Q: Feb. 2026 )
=222.054/3026.301
=7.34 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 7.34% mean?
Tokai Soft Co (TSE:4430) has a Net Margin % of 7.34% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Tokai Soft Co and its competitors. This is 21% above median its historical median of 6.05. Over the past decade, Tokai Soft Co's Net Margin % has ranged from 2.88 to 8.43. According to the industry distribution chart, Tokai Soft Co ranks #877 out of 2833 companies in the Software industry, placing it in the top 31%.
Is Tokai Soft Co's Net Margin % too high?
Tokai Soft Co's current Net Margin % of 7.34% is 21% above median its 10-year median of 6.05. Over the past 10 years, this metric has ranged from a low of 2.88 to a high of 8.43. The Software industry median Net Margin % is 2.64. Tokai Soft Co's value of 7.34% is 178% above this industry median. Based on the distribution chart, Tokai Soft Co ranks #877 out of 2833 companies in the Software industry, which is above the industry midpoint. Overall, Tokai Soft Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Soft Co's Net Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Tokai Soft Co ranks #877 out of 2833 companies for Net Margin %. This puts Tokai Soft Co in the upper half of its industry. The industry median Net Margin % is 2.64. Tokai Soft Co's value of 7.34% is 178% above this benchmark. Historically, Tokai Soft Co's own Net Margin % has ranged from 2.88 to 8.43 over the past decade. While the company's 10-year median is 6.05 vs. the industry median of 2.64, Tokai Soft 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 2.64, based on 2,833 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. Tokai Soft Co's current Net Margin % of 7.34% is 178% 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 Tokai Soft Co and its competitors. For the Software industry, the median Net Margin % is 2.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Soft Co's current Net Margin % is 7.34%, which is 21% above median its own 10-year median of 6.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Soft Co stock overvalued right now?
Based on GuruFocus' analysis, Tokai Soft Co (TSE:4430) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,975.09, compared to a current price of 円1,655.00 — trading 16.2% below its estimated fair value. The current Net Margin % is 7.34%, which is 21% above median its 10-year median of 6.05 and 178% above the Software industry median of 2.64. Tokai Soft Co's overall GF Score™ is 85/100 with 1 warning sign 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 Tokai Soft Co (TSE:4430), the current Net Margin % is 7.34% as of Feb. 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 Tokai Soft Co (TSE:4430) Overvalued in 2026?

Based on GuruFocus' analysis, Tokai Soft Co stock appears to be undervalued. The current stock price of 円1,655.00 is trading 16.2% below its estimated GF Value™ of 円1,975.09. GuruFocus considers Tokai Soft Co to be Modestly Undervalued.

Key valuation signals for TSE:4430:

  • Net Margin %: 7.34% (21% above median its 10-year median of 6.05)
  • GF Value™: 円1,975.09 vs. price of 円1,655.00 (16.2% below fair value)
  • GF Score™: 85/100 with 1 warning sign
  • Industry Position: 178% above the Software median (#877 of 2833)

No single metric tells the full story. See the TSE:4430 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tokai Soft Co Business Description

Address 2-16-1 Noritake, Nakamura-ku, Nagoya, JPN, 451-0043
Tokai Soft Co Ltd provides software solutions. The company is engaged in a wide range of businesses as an engineering company that combines technologies for total system construction, network and solution solutions, and support technologies that provide stable operation.
85GF Score

Get the complete analysis for TSE:4430

Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,655.00
Price
円1,975.09
GF Value