AR Advanced Technology (TSE:5578) Net Margin %: 4.87% (As of Feb. 2026) — 55% Above Median

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TSE:5578 AR Advanced Technology Inc TSE:5578
57 GF Score
Price 円855.00
GF Value 円1,151.47
Valuation Modestly Undervalued
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What is AR Advanced Technology Net Margin %?

AR Advanced Technology TSE:5578 +2.15% 57 Net Margin % is 4.87% as of Feb. 2026, which is 55% above its 10-year median of 3.14. GuruFocus rates TSE:5578 with a GF Score™ of 57/100 and a GF Value™ of 円1,151.47 (Modestly Undervalued). Among 2,831 Software companies, AR Advanced Technology ranks better than 56.76% on this metric.

Net margin is calculated as Net Income divided by its Revenue. AR Advanced Technology's Net Income for the three months ended in Feb. 2026 was 円197 Mil. AR Advanced Technology's Revenue for the three months ended in Feb. 2026 was 円4,052 Mil. Therefore, AR Advanced Technology's net margin for the quarter that ended in Feb. 2026 was 4.87%.

The historical rank and industry rank for AR Advanced Technology's Net Margin % or its related term are showing as below:

TSE:5578' s Net Margin % Range Over the Past 10 Years
Min: 2.48   Med: 3.14   Max: 4.54
Current: 4.54


TSE:5578's Net Margin % is ranked better than
56.76% of 2831 companies
in the Software industry
Industry Median: 2.63 vs TSE:5578: 4.54

AR Advanced Technology  (TSE:5578) 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.


AR Advanced Technology Net Margin % Related Terms


AR Advanced Technology Net Margin % Historical Data

* Premium members only.

The historical data trend for AR Advanced 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.

AR Advanced Technology Net Margin % Chart

AR Advanced Technology Annual Data
Trend Aug21 Aug22 Aug23 Aug24 Aug25
Net Margin %
4.54 3.11 3.14 2.48 3.15

AR Advanced Technology Quarterly Data
Aug21 Aug22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Feb25 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 4.39 5.12 3.21 4.87 4.92

TSE:5578 vs IBM, ACN, FISV: Net Margin % Comparison

For the Information Technology Services subindustry, AR Advanced 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.


AR Advanced Technology Net Margin % vs Software Industry

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

* The bar in red indicates where AR Advanced Technology's Net Margin % falls into.


TSE:5578
57GF Score
AR Advanced Technology Inc TSE:5578
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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AR Advanced Technology 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.

AR Advanced Technology's Net Margin for the fiscal year that ended in Aug. 2025 is calculated as

Net Margin=Net Income (A: Aug. 2025 )/Revenue (A: Aug. 2025 )
=445.412/14152.706
=3.15 %

AR Advanced Technology'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 )
=197.499/4052.091
=4.87 %

* 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 4.87% mean?
AR Advanced Technology (TSE:5578) has a Net Margin % of 4.87% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on AR Advanced Technology and its competitors. This is 55% above median its historical median of 3.14. Over the past decade, AR Advanced Technology's Net Margin % has ranged from 2.48 to 4.54. According to the industry distribution chart, AR Advanced Technology ranks #1224 out of 2831 companies in the Software industry, placing it in the top 43.2%.
Is AR Advanced Technology's Net Margin % too high?
AR Advanced Technology's current Net Margin % of 4.87% is 55% above median its 10-year median of 3.14. Over the past 10 years, this metric has ranged from a low of 2.48 to a high of 4.54. The Software industry median Net Margin % is 2.63. AR Advanced Technology's value of 4.87% is 85.2% above this industry median. Based on the distribution chart, AR Advanced Technology ranks #1224 out of 2831 companies in the Software industry, which is above the industry midpoint. Overall, AR Advanced Technology has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AR Advanced Technology's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, AR Advanced Technology ranks #1224 out of 2831 companies for Net Margin %. This puts AR Advanced Technology in the upper half of its industry. The industry median Net Margin % is 2.63. AR Advanced Technology's value of 4.87% is 85.2% above this benchmark. Historically, AR Advanced Technology's own Net Margin % has ranged from 2.48 to 4.54 over the past decade. While the company's 10-year median is 3.14 vs. the industry median of 2.63, AR Advanced 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 2.63, based on 2,831 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. AR Advanced Technology's current Net Margin % of 4.87% is 85.2% 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 AR Advanced Technology and its competitors. For the Software industry, the median Net Margin % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AR Advanced Technology's current Net Margin % is 4.87%, which is 55% above median its own 10-year median of 3.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AR Advanced Technology stock overvalued right now?
Based on GuruFocus' analysis, AR Advanced Technology (TSE:5578) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,151.47, compared to a current price of 円855.00 — trading 25.7% below its estimated fair value. The current Net Margin % is 4.87%, which is 55% above median its 10-year median of 3.14 and 85.2% above the Software industry median of 2.63. AR Advanced Technology's overall GF Score™ is 57/100. 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 AR Advanced Technology (TSE:5578), the current Net Margin % is 4.87% 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 AR Advanced Technology (TSE:5578) Overvalued in 2026?

Based on GuruFocus' analysis, AR Advanced Technology stock appears to be undervalued. The current stock price of 円855.00 is trading 25.7% below its estimated GF Value™ of 円1,151.47. GuruFocus considers AR Advanced Technology to be Modestly Undervalued.

Key valuation signals for TSE:5578:

  • Net Margin %: 4.87% (55% above median its 10-year median of 3.14)
  • GF Value™: 円1,151.47 vs. price of 円855.00 (25.7% below fair value)
  • GF Score™: 57/100
  • Industry Position: 85.2% above the Software median (#1224 of 2831)

No single metric tells the full story. See the TSE:5578 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


AR Advanced Technology Business Description

Address 2-17-1 Shibuya, Shibuya-ku, Tokyo, JPN, 150-0002
AR Advanced Technology Inc is engaged in the DX solution business utilizing cloud technology, data analysis, and AI. It provides a comprehensive service that goes beyond simple system introduction. Its products and services include Loogue faq, an AI chatbot that is specialized in employee inquiries; Zidoma data which may be useful to reduce fileserver operating costs; and Mieta a cloud contact center analysis management service.
57GF Score

Get the complete analysis for TSE:5578

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

円855.00
Price
円1,151.47
GF Value