Dentsu GroupFRA:DEN +1.24%70 Gross Margin % is 82.62% as of Mar. 2026, which is 8% below its 10-year median of 89.74. GuruFocus rates FRA:DEN with a GF Score™ of 70/100 and a GF Value™ of €22.23. The stock has 5 warning signs investors should review. Among 946 Media - Diversified companies, Dentsu Group ranks better than 88.79% on this metric.
Dentsu Group Inc gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for Dentsu Group's Gross Margin % or its related term are showing as below:
FRA:DEN'
s Gross Margin % Range Over the Past 10 Years
Min: 83.29 Med: 89.74 Max: 94.49
Current: 83.29
During the past 13 years, the highestGross Margin % of Dentsu Group was 94.49%. The lowest was 83.29%. And the median was 89.74%.
FRA:DEN's Gross Margin % is ranked better than 88.79% of 946
companies
in the Media - Diversified industry
Industry Median: 38.91
vs FRA:DEN: 83.29
Dentsu Group had a gross margin of 82.62% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Dentsu Group was -1.40% per year.
Dentsu Group (FRA:DEN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dentsu Group had a gross margin of 82.62% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dentsu Group Gross Margin % Related Terms
Dentsu Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Dentsu Group's Gross 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.
FRA:DEN vs APP, OMC, TTD: Gross Margin % Comparison
For the Advertising Agencies subindustry, Dentsu Group's Gross Margin %, along with its competitors' market caps and Gross 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.
Dentsu Group Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Dentsu Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dentsu Group's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Dentsu Group (FRA:DEN) has a Gross Margin % of 82.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dentsu Group and its competitors. This is near median its historical median of 89.74. Over the past decade, Dentsu Group's Gross Margin % has ranged from 83.29 to 94.49. According to the industry distribution chart, Dentsu Group ranks #106 out of 946 companies in the Media - Diversified industry, placing it in the top 11.2%.
Is Dentsu Group's Gross Margin % too high?
Dentsu Group's current Gross Margin % of 82.62% is near median its 10-year median of 89.74. Over the past 10 years, this metric has ranged from a low of 83.29 to a high of 94.49. The Media - Diversified industry median Gross Margin % is 38.91. Dentsu Group's value of 82.62% is 112.3% above this industry median. Based on the distribution chart, Dentsu Group ranks #106 out of 946 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Dentsu Group has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Dentsu Group's Gross Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Dentsu Group ranks #106 out of 946 companies for Gross Margin %. This places Dentsu Group in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.91. Dentsu Group's value of 82.62% is 112.3% above this benchmark. Historically, Dentsu Group's own Gross Margin % has ranged from 83.29 to 94.49 over the past decade. While the company's 10-year median is 89.74 vs. the industry median of 38.91, Dentsu Group 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 Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.91, based on 946 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dentsu Group's current Gross Margin % of 82.62% is 112.3% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Dentsu Group and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dentsu Group's current Gross Margin % is 82.62%, which is near median its own 10-year median of 89.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dentsu Group stock overvalued right now?
Dentsu Group (FRA:DEN) has a current Gross Margin % of 82.62%. The stock's GF Value™ is €22.23, compared to a current price of €16.30 — trading 26.7% below its estimated fair value. The current Gross Margin % is 82.62%, which is near median its 10-year median of 89.74 and 112.3% above the Media - Diversified industry median of 38.91. Dentsu Group's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Dentsu Group (FRA:DEN), the current Gross Margin % is 82.62% 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 Dentsu Group (FRA:DEN) Overvalued in 2026?
Based on GuruFocus' analysis, Dentsu Group stock appears to be undervalued.
The current stock price of €16.30 is trading 26.7% below its estimated GF Value™ of €22.23.
Key valuation signals for FRA:DEN:
Gross Margin %: 82.62% (near median its 10-year median of 89.74)
GF Value™: €22.23 vs. price of €16.30 (26.7% below fair value)
Industry Position: 112.3% above the Media - Diversified median (#106 of 946)
No single metric tells the full story. See the FRA:DEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dentsu Group is the top advertising agency in Japan and the fifth-largest advertising network in the world. It is the oldest advertising agency in Japan, with the original company being established in 1901. Over the years, Dentsu expanded its global footprint through mergers and acquisitions. Currently, international sales account for about 60% of total revenue.
70GF Score
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