Nova System CoTSE:5257 -0.04%83 Pretax Margin % is 7.10% as of Dec. 2025, which is 14% above its 10-year median of 6.21. GuruFocus rates TSE:5257 with a GF Score™ of 83/100 and a GF Value™ of 円3,150.14 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,816 Software companies, Nova System Co ranks better than 54.58% on this metric.
The historical rank and industry rank for Nova System Co's Pretax Margin % or its related term are showing as below:
TSE:5257'
s Pretax Margin % Range Over the Past 10 Years
Min: 2.69 Med: 6.21 Max: 8.96
Current: 5.18
TSE:5257's Pretax Margin % is ranked better than 54.58% of 2816
companies
in the Software industry
Industry Median: 3.56
vs TSE:5257: 5.18
Nova System Co (TSE:5257) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Nova System Co Pretax Margin % Related Terms
Nova System Co Pretax Margin % Historical Data
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The historical data trend for Nova System Co's Pretax 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 UBER, SHOP, CRM: Pretax Margin % Comparison
For the Software - Application subindustry, Nova System Co's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Nova System Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Nova System Co's Pretax 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 Pretax Margin % of 7.10% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Nova System Co and its competitors. This is 14% above median its historical median of 6.21. Over the past decade, Nova System Co's Pretax Margin % has ranged from 2.69 to 8.96. According to the industry distribution chart, Nova System Co ranks #1279 out of 2816 companies in the Software industry, placing it in the top 45.4%.
Is Nova System Co's Pretax Margin % too high?
Nova System Co's current Pretax Margin % of 7.10% is 14% above median its 10-year median of 6.21. Over the past 10 years, this metric has ranged from a low of 2.69 to a high of 8.96. The Software industry median Pretax Margin % is 3.56. Nova System Co's value of 7.10% is 99.4% above this industry median. Based on the distribution chart, Nova System Co ranks #1279 out of 2816 companies in the Software industry, which is above the industry midpoint. Overall, Nova System Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nova System Co's Pretax Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Nova System Co ranks #1279 out of 2816 companies for Pretax Margin %. This puts Nova System Co in the upper half of its industry. The industry median Pretax Margin % is 3.56. Nova System Co's value of 7.10% is 99.4% above this benchmark. Historically, Nova System Co's own Pretax Margin % has ranged from 2.69 to 8.96 over the past decade. While the company's 10-year median is 6.21 vs. the industry median of 3.56, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.56, based on 2,816 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nova System Co's current Pretax Margin % of 7.10% is 99.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Nova System Co and its competitors. For the Software industry, the median Pretax Margin % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nova System Co's current Pretax Margin % is 7.10%, which is 14% above median its own 10-year median of 6.21. 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3,150.14, compared to a current price of 円2,584.00 — trading 18% below its estimated fair value. The current Pretax Margin % is 7.10%, which is 14% above median its 10-year median of 6.21 and 99.4% above the Software industry median of 3.56. Nova System Co'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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Nova System Co (TSE:5257), the current Pretax Margin % is 7.10% 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2,584.00 is trading 18% below its estimated GF Value™ of 円3,150.14.
GuruFocus considers Nova System Co to be Modestly Undervalued.
Key valuation signals for TSE:5257:
Pretax Margin %: 7.10% (14% above median its 10-year median of 6.21)
GF Value™: 円3,150.14 vs. price of 円2,584.00 (18% below fair value)
Industry Position: 99.4% above the Software median (#1279 of 2816)
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.
83GF Score
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