NECNIPNF +2.57%79 OCF Margin % is 23.46% as of Mar. 2026, which is 269% above its 10-year median of 6.35. GuruFocus rates NIPNF with a GF Score™ of 79/100 and a GF Value™ of $17.90 (Significantly Overvalued). Among 2,812 Software companies, NEC ranks better than 63.83% on this metric.
OCF Margin % is calculated as Cash Flow from Operations divided by its Revenue. NEC's Cash Flow from Operations for the
three
months ended in Mar. 2026 was $1,716 Mil. NEC's Revenue for the
three
months ended in Mar. 2026 was $7,313 Mil. Therefore, NEC's OCF Margin % for the quarter that ended in Mar. 2026 was 23.46%.
The historical rank and industry rank for NEC's OCF Margin % or its related term are showing as below:
NIPNF'
s OCF Margin % Range Over the Past 10 Years
Min: 2.2 Med: 6.35 Max: 12.24
Current: 12.27
During the past 13 years, the highest OCF Margin % of NEC was 12.24%. The lowest was 2.20%. And the median was 6.35%.
NIPNF's OCF Margin % is ranked better than 63.83% of 2812
companies
in the Software industry
Industry Median: 6.745
vs NIPNF: 12.27
NEC OCF Margin % Related Terms
NEC OCF Margin % Historical Data
* Premium members only.
The historical data trend for NEC's OCF 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.
For the Information Technology Services subindustry, NEC's OCF Margin %, along with its competitors' market caps and OCF 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.
NEC OCF Margin % vs Software Industry
For the Software industry and Technology sector, NEC's OCF Margin % distribution charts can be found below:
* The bar in red indicates where NEC's OCF 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.
NEC (NIPNF) has a OCF Margin % of 23.46% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on NEC and its competitors. This is 269% above median its historical median of 6.35. Over the past decade, NEC's OCF Margin % has ranged from 2.20 to 12.24. According to the industry distribution chart, NEC ranks #1017 out of 2812 companies in the Software industry, placing it in the top 36.2%.
Is NEC's OCF Margin % too high?
NEC's current OCF Margin % of 23.46% is 269% above median its 10-year median of 6.35. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 12.24. The Software industry median OCF Margin % is 6.75. NEC's value of 23.46% is 247.8% above this industry median. Based on the distribution chart, NEC ranks #1017 out of 2812 companies in the Software industry, which is above the industry midpoint. Overall, NEC has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NEC's OCF Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NEC ranks #1017 out of 2812 companies for OCF Margin %. This puts NEC in the upper half of its industry. The industry median OCF Margin % is 6.75. NEC's value of 23.46% is 247.8% above this benchmark. Historically, NEC's own OCF Margin % has ranged from 2.20 to 12.24 over the past decade. While the company's 10-year median is 6.35 vs. the industry median of 6.75, NEC 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 OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.75, based on 2,812 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NEC's current OCF Margin % of 23.46% is 247.8% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on NEC and its competitors. For the Software industry, the median OCF Margin % is 6.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEC's current OCF Margin % is 23.46%, which is 269% above median its own 10-year median of 6.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEC stock overvalued right now?
Based on GuruFocus' analysis, NEC (NIPNF) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.90, compared to a current price of $23.75 — trading 32.7% above its estimated fair value. The current OCF Margin % is 23.46%, which is 269% above median its 10-year median of 6.35 and 247.8% above the Software industry median of 6.75. NEC's overall GF Score™ is 79/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For NEC (NIPNF), the current OCF Margin % is 23.46% 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 NEC (NIPNF) Overvalued in 2026?
Based on GuruFocus' analysis, NEC stock appears to be overvalued.
The current stock price of $23.75 is trading 32.7% above its estimated GF Value™ of $17.90.
GuruFocus considers NEC to be Significantly Overvalued.
Key valuation signals for NIPNF:
OCF Margin %: 23.46% (269% above median its 10-year median of 6.35)
GF Value™: $17.90 vs. price of $23.75 (32.7% above fair value)
Industry Position: 247.8% above the Software median (#1017 of 2812)
No single metric tells the full story. See the NIPNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NEC Corp is engaged in IT services, networks, social infrastructure, and solutions. The company operates through three segments: IT Services, Social Infrastructure, and Others. The IT Services segment provides system integration, consulting, maintenance, outsourcing, cloud services, system equipment, and software services. The Social Infrastructure segment offers network infrastructure, including core networks, mobile base stations, optical transmission systems, and marine systems, along with telecom software, OSS/BSS solutions, aerospace and defense system integration, and maintenance. The Others segment covers the development, manufacturing, and sales of system equipment. It generates the majority of its revenue from the IT Services segment.
79GF Score
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