SECOM CoSOMLF 79 Gross Margin % is 32.32% as of Mar. 2026, which is 2% above its 10-year median of 31.79. GuruFocus rates SOMLF with a GF Score™ of 79/100 and a GF Value™ of $36.09 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,005 Business Services companies, SECOM Co ranks worse than 54.43% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SECOM Co's Gross Profit for the
three
months ended in Mar. 2026 was $707 Mil. SECOM Co's Revenue for the
three
months ended in Mar. 2026 was $2,187 Mil. Therefore, SECOM Co's Gross Margin % for the quarter that ended in Mar. 2026 was 32.32%.
The historical rank and industry rank for SECOM Co's Gross Margin % or its related term are showing as below:
SOMLF'
s Gross Margin % Range Over the Past 10 Years
Min: 30.93 Med: 31.79 Max: 33.04
Current: 31.73
During the past 13 years, the highestGross Margin % of SECOM Co was 33.04%. The lowest was 30.93%. And the median was 31.79%.
SOMLF's Gross Margin % is ranked worse than 54.43% of 1005
companies
in the Business Services industry
Industry Median: 34.46
vs SOMLF: 31.73
SECOM Co had a gross margin of 32.32% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for SECOM Co was -0.40% per year.
SECOM Co (OTCPK:SOMLF) 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
SECOM Co had a gross margin of 32.32% 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.
SECOM Co Gross Margin % Related Terms
SECOM Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for SECOM 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.
SOMLF vs ALLE, MSA, ADT: Gross Margin % Comparison
For the Security & Protection Services subindustry, SECOM 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.
SECOM Co Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, SECOM Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SECOM 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.
SECOM Co (SOMLF) has a Gross Margin % of 32.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SECOM Co and its competitors. This is near median its historical median of 31.79. Over the past decade, SECOM Co's Gross Margin % has ranged from 30.93 to 33.04. According to the industry distribution chart, SECOM Co ranks #547 out of 1005 companies in the Business Services industry, placing it in the top 54.4%.
Is SECOM Co's Gross Margin % too high?
SECOM Co's current Gross Margin % of 32.32% is near median its 10-year median of 31.79. Over the past 10 years, this metric has ranged from a low of 30.93 to a high of 33.04. The Business Services industry median Gross Margin % is 34.46. SECOM Co's value of 32.32% is 6.2% below this industry median. Based on the distribution chart, SECOM Co ranks #547 out of 1005 companies in the Business Services industry, which is below the industry midpoint. Overall, SECOM Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SECOM Co's Gross Margin % compare to ALLE and MSA?
According to the Business Services industry distribution chart, SECOM Co ranks #547 out of 1005 companies for Gross Margin %. This places SECOM Co in the lower half of its industry. The industry median Gross Margin % is 34.46. SECOM Co's value of 32.32% is 6.2% below this benchmark. Historically, SECOM Co's own Gross Margin % has ranged from 30.93 to 33.04 over the past decade. While the company's 10-year median is 31.79 vs. the industry median of 34.46, SECOM Co 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,005 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. SECOM Co's current Gross Margin % of 32.32% is 6.2% 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 SECOM Co and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SECOM Co's current Gross Margin % is 32.32%, which is near median its own 10-year median of 31.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SECOM Co stock overvalued right now?
Based on GuruFocus' analysis, SECOM Co (SOMLF) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.09, compared to a current price of $40.05 — trading 11% above its estimated fair value. The current Gross Margin % is 32.32%, which is near median its 10-year median of 31.79 and 6.2% below the Business Services industry median of 34.46. SECOM Co's overall GF Score™ is 79/100 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 SECOM Co (SOMLF), the current Gross Margin % is 32.32% 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 SECOM Co (SOMLF) Overvalued in 2026?
Based on GuruFocus' analysis, SECOM Co stock appears to be overvalued.
The current stock price of $40.05 is trading 11% above its estimated GF Value™ of $36.09.
GuruFocus considers SECOM Co to be Modestly Overvalued.
Key valuation signals for SOMLF:
Gross Margin %: 32.32% (near median its 10-year median of 31.79)
GF Value™: $36.09 vs. price of $40.05 (11% above fair value)
Industry Position: 6.2% below the Business Services median (#547 of 1005)
No single metric tells the full story. See the SOMLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SECOM Co Ltd is a provider of security services and surveillance systems. The company operates seven business segments. BPO ICT segment provides information security, disaster response, data center, and EPO services. Disaster Prevention supplies fire alarms, extinguishing systems, and other equipment for offices, plants, tunnels, cultural properties, ships, and homes. Geospatial Information Services offers mapping and related services to governments in Japan and abroad. Insurance designs products reflecting risk reduction and specialized health coverage. Medical Services covers home care, nursing, senior residences, medical records, and equipment sales. Security Services delivers centralized systems for safety and monitoring. Others include real estate leasing and construction support.
79GF Score
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