Nova System CoTSE:5257 -1.56%84 Net Margin % is 4.80% as of Dec. 2025, which is 19% above its 10-year median of 4.04. GuruFocus rates TSE:5257 with a GF Score™ of 84/100 and a GF Value™ of 円3,144.07 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,827 Software companies, Nova System Co ranks better than 53.27% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Nova System Co's Net Income for the
six
months ended in Dec. 2025 was 円164 Mil. Nova System Co's Revenue for the
six
months ended in Dec. 2025 was 円3,422 Mil. Therefore, Nova System Co's net margin for the quarter that ended in Dec. 2025 was 4.80%.
The historical rank and industry rank for Nova System Co's Net Margin % or its related term are showing as below:
TSE:5257'
s Net Margin % Range Over the Past 10 Years
Min: 1.73 Med: 4.04 Max: 6.31
Current: 3.49
TSE:5257's Net Margin % is ranked better than 53.27% of 2827
companies
in the Software industry
Industry Median: 2.54
vs TSE:5257: 3.49
Nova System Co (TSE:5257) 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.
Nova System Co Net Margin % Related Terms
Nova System Co Net Margin % Historical Data
* Premium members only.
The historical data trend for Nova System 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.
TSE:5257 vs CRM, SHOP, UBER: Net Margin % Comparison
For the Software - Application subindustry, Nova System 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.
Nova System Co Net Margin % vs Software Industry
For the Software industry and Technology sector, Nova System Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Nova System 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.
Nova System Co (TSE:5257) has a Net Margin % of 4.80% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Nova System Co and its competitors. This is 19% above median its historical median of 4.04. Over the past decade, Nova System Co's Net Margin % has ranged from 1.73 to 6.31. According to the industry distribution chart, Nova System Co ranks #1321 out of 2827 companies in the Software industry, placing it in the top 46.7%.
Is Nova System Co's Net Margin % too high?
Nova System Co's current Net Margin % of 4.80% is 19% above median its 10-year median of 4.04. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 6.31. The Software industry median Net Margin % is 2.54. Nova System Co's value of 4.80% is 89% above this industry median. Based on the distribution chart, Nova System Co ranks #1321 out of 2827 companies in the Software industry, which is above the industry midpoint. Overall, Nova System Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nova System Co's Net Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Nova System Co ranks #1321 out of 2827 companies for Net Margin %. This puts Nova System Co in the upper half of its industry. The industry median Net Margin % is 2.54. Nova System Co's value of 4.80% is 89% above this benchmark. Historically, Nova System Co's own Net Margin % has ranged from 1.73 to 6.31 over the past decade. While the company's 10-year median is 4.04 vs. the industry median of 2.54, Nova System 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 2.54, 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. Nova System Co's current Net Margin % of 4.80% is 89% 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 Nova System Co 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. Nova System Co's current Net Margin % is 4.80%, which is 19% above median its own 10-year median of 4.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova System Co stock overvalued right now?
Based on GuruFocus' analysis, Nova System Co (TSE:5257) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,144.07, compared to a current price of 円2,461.00 — trading 21.7% below its estimated fair value. The current Net Margin % is 4.80%, which is 19% above median its 10-year median of 4.04 and 89% above the Software industry median of 2.54. Nova System Co's overall GF Score™ is 84/100 with 2 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 Nova System Co (TSE:5257), the current Net Margin % is 4.80% as of Dec. 2025. 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 Nova System Co (TSE:5257) Overvalued in 2026?
Based on GuruFocus' analysis, Nova System Co stock appears to be undervalued.
The current stock price of 円2,461.00 is trading 21.7% below its estimated GF Value™ of 円3,144.07.
GuruFocus considers Nova System Co to be Modestly Undervalued.
Key valuation signals for TSE:5257:
Net Margin %: 4.80% (19% above median its 10-year median of 4.04)
GF Value™: 円3,144.07 vs. price of 円2,461.00 (21.7% below fair value)
Industry Position: 89% above the Software median (#1321 of 2827)
No single metric tells the full story. See the TSE:5257 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nova System Co Ltd is involved in the system integration business mainly for the financial and insurance industry, medical care and cloud service business. The Company's business is a single segment of software development business, and the services it provides are system integration and cloud services.
84GF Score
Get the complete analysis for TSE:5257
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:5257 has been successfully added to your 
