Internet Initiative JapanIIJIF -3.09%94 Gross Margin % is 22.86% as of Mar. 2026, which is 13% above its 10-year median of 20.25. GuruFocus rates IIJIF with a GF Score™ of 94/100 and a GF Value™ of $19.66 (Fairly Valued). The stock has 5 warning signs investors should review. Among 342 Telecommunication Services companies, Internet Initiative Japan ranks worse than 84.8% on this metric.
Internet Initiative Japan (OTCPK:IIJIF) 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
Internet Initiative Japan had a gross margin of 22.86% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Internet Initiative Japan Gross Margin % Related Terms
Internet Initiative Japan Gross Margin % Historical Data
* 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 Telecom Services subindustry, Internet Initiative Japan'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.
Internet Initiative Japan Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Internet Initiative Japan's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Internet Initiative Japan'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.
Internet Initiative Japan (IIJIF) has a Gross Margin % of 22.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Internet Initiative Japan and its competitors. This is 13% above median its historical median of 20.25. Over the past decade, Internet Initiative Japan's Gross Margin % has ranged from 15.06 to 23.13. According to the industry distribution chart, Internet Initiative Japan ranks #290 out of 342 companies in the Telecommunication Services industry, placing it in the top 84.8%.
Is Internet Initiative Japan's Gross Margin % too high?
Internet Initiative Japan's current Gross Margin % of 22.86% is 13% above median its 10-year median of 20.25. Over the past 10 years, this metric has ranged from a low of 15.06 to a high of 23.13. The Telecommunication Services industry median Gross Margin % is 51.42. Internet Initiative Japan's value of 22.86% is 55.5% below this industry median. Based on the distribution chart, Internet Initiative Japan ranks #290 out of 342 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Internet Initiative Japan has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Internet Initiative Japan's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Internet Initiative Japan ranks #290 out of 342 companies for Gross Margin %. This places Internet Initiative Japan in the lower half of its industry. The industry median Gross Margin % is 51.42. Internet Initiative Japan's value of 22.86% is 55.5% below this benchmark. Historically, Internet Initiative Japan's own Gross Margin % has ranged from 15.06 to 23.13 over the past decade. While the company's 10-year median is 20.25 vs. the industry median of 51.42, Internet Initiative Japan has consistently been below 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 342 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. Internet Initiative Japan's current Gross Margin % of 22.86% is 55.5% below 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 Internet Initiative Japan and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Internet Initiative Japan's current Gross Margin % is 22.86%, which is 13% above median its own 10-year median of 20.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Internet Initiative Japan stock overvalued right now?
Based on GuruFocus' analysis, Internet Initiative Japan (IIJIF) is currently considered Fairly Valued. The stock's GF Value™ is $19.66, compared to a current price of $18.51 — trading 5.8% below its estimated fair value. The current Gross Margin % is 22.86%, which is 13% above median its 10-year median of 20.25 and 55.5% below the Telecommunication Services industry median of 51.42. Internet Initiative Japan's overall GF Score™ is 94/100 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 Internet Initiative Japan (IIJIF), the current Gross Margin % is 22.86% 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 Internet Initiative Japan (IIJIF) Overvalued in 2026?
Based on GuruFocus' analysis, Internet Initiative Japan stock appears to be undervalued.
The current stock price of $18.51 is trading 5.8% below its estimated GF Value™ of $19.66.
GuruFocus considers Internet Initiative Japan to be Fairly Valued.
Key valuation signals for IIJIF:
Gross Margin %: 22.86% (13% above median its 10-year median of 20.25)
GF Value™: $19.66 vs. price of $18.51 (5.8% below fair value)
Industry Position: 55.5% below the Telecommunication Services median (#290 of 342)
No single metric tells the full story. See the IIJIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Internet Initiative Japan Inc. is a provider of a variety of services including Internet access, outsourcing, and systems integration. Its Internet access services span dial-up, mobile, and broadband technologies. Its wide area network services allow secure data sharing over Internet virtual private networks, independently developed routers, and closed wide area networks. Its outsourcing services include cloud, content delivery, data center, and security services. The firm generates nearly all its revenue in Japan.
94GF Score
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