SMS CoSMSZF 90 Gross Margin % is 87.21% as of Mar. 2026, which is 1% below its 10-year median of 88.31. GuruFocus rates SMSZF with a GF Score™ of 90/100 and a GF Value™ of $8.33. The stock has 6 warning signs investors should review. Among 631 Healthcare Providers & Services companies, SMS Co ranks better than 93.19% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SMS Co's Gross Profit for the
three
months ended in Mar. 2026 was $95.6 Mil. SMS Co's Revenue for the
three
months ended in Mar. 2026 was $109.6 Mil. Therefore, SMS Co's Gross Margin % for the quarter that ended in Mar. 2026 was 87.21%.
The historical rank and industry rank for SMS Co's Gross Margin % or its related term are showing as below:
SMSZF'
s Gross Margin % Range Over the Past 10 Years
Min: 83.83 Med: 88.31 Max: 89
Current: 88.26
During the past 13 years, the highestGross Margin % of SMS Co was 89.00%. The lowest was 83.83%. And the median was 88.31%.
SMSZF's Gross Margin % is ranked better than 93.19% of 631
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs SMSZF: 88.26
SMS Co had a gross margin of 87.21% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SMS Co was -0.10% per year.
SMS Co (OTCPK:SMSZF) 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
SMS Co had a gross margin of 87.21% 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.
SMS Co Gross Margin % Related Terms
SMS Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for SMS Co'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.
SMSZF vs VEEV, BTSG, TEM: Gross Margin % Comparison
For the Health Information Services subindustry, SMS Co'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.
SMS Co Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, SMS Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SMS Co'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.
SMS Co (SMSZF) has a Gross Margin % of 87.21% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SMS Co and its competitors. This is near median its historical median of 88.31. Over the past decade, SMS Co's Gross Margin % has ranged from 83.83 to 89.00. According to the industry distribution chart, SMS Co ranks #43 out of 631 companies in the Healthcare Providers & Services industry, placing it in the top 6.8%.
Is SMS Co's Gross Margin % too high?
SMS Co's current Gross Margin % of 87.21% is near median its 10-year median of 88.31. Over the past 10 years, this metric has ranged from a low of 83.83 to a high of 89.00. The Healthcare Providers & Services industry median Gross Margin % is 40.09. SMS Co's value of 87.21% is 117.5% above this industry median. Based on the distribution chart, SMS Co ranks #43 out of 631 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, SMS Co has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does SMS Co's Gross Margin % compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, SMS Co ranks #43 out of 631 companies for Gross Margin %. This places SMS Co in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.09. SMS Co's value of 87.21% is 117.5% above this benchmark. Historically, SMS Co's own Gross Margin % has ranged from 83.83 to 89.00 over the past decade. While the company's 10-year median is 88.31 vs. the industry median of 40.09, SMS 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 Gross Margin % for a Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 631 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. SMS Co's current Gross Margin % of 87.21% is 117.5% 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 SMS Co and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SMS Co's current Gross Margin % is 87.21%, which is near median its own 10-year median of 88.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMS Co stock overvalued right now?
SMS Co (SMSZF) has a current Gross Margin % of 87.21%. The stock's GF Value™ is $8.33, compared to a current price of $8.56 — trading 2.8% above its estimated fair value. The current Gross Margin % is 87.21%, which is near median its 10-year median of 88.31 and 117.5% above the Healthcare Providers & Services industry median of 40.09. SMS Co's overall GF Score™ is 90/100 with 6 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 SMS Co (SMSZF), the current Gross Margin % is 87.21% 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 SMS Co (SMSZF) Overvalued in 2026?
Based on GuruFocus' analysis, SMS Co stock appears to be overvalued.
The current stock price of $8.56 is trading 2.8% above its estimated GF Value™ of $8.33.
Key valuation signals for SMSZF:
Gross Margin %: 87.21% (near median its 10-year median of 88.31)
GF Value™: $8.33 vs. price of $8.56 (2.8% above fair value)
Industry Position: 117.5% above the Healthcare Providers & Services median (#43 of 631)
No single metric tells the full story. See the SMSZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMS Co Ltd is a Japanese company involved in providing various services targeting information infrastructure for the aging society. The company divides its search service by the following segments: nursing care, medical care, career, healthcare/senior life, and global.
90GF Score
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