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
GMO Payment Gateway had a gross margin of 65.00% 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.
GMO Payment Gateway Gross Margin % Related Terms
GMO Payment Gateway Gross Margin % Historical Data
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The historical data trend for GMO Payment Gateway'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.
STU:3RH vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, GMO Payment Gateway'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.
GMO Payment Gateway Gross Margin % vs Software Industry
For the Software industry and Technology sector, GMO Payment Gateway's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GMO Payment Gateway'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.
GMO Payment Gateway (STU:3RH) has a Gross Margin % of 65.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on GMO Payment Gateway and its competitors. This is near median its historical median of 67.36. Over the past decade, GMO Payment Gateway's Gross Margin % has ranged from 63.35 to 77.14. According to the industry distribution chart, GMO Payment Gateway ranks #626 out of 2680 companies in the Software industry, placing it in the top 23.4%.
Is GMO Payment Gateway's Gross Margin % too high?
GMO Payment Gateway's current Gross Margin % of 65.00% is near median its 10-year median of 67.36. Over the past 10 years, this metric has ranged from a low of 63.35 to a high of 77.14. The Software industry median Gross Margin % is 40.45. GMO Payment Gateway's value of 65.00% is 60.7% above this industry median. Based on the distribution chart, GMO Payment Gateway ranks #626 out of 2680 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, GMO Payment Gateway has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does GMO Payment Gateway's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, GMO Payment Gateway ranks #626 out of 2680 companies for Gross Margin %. This places GMO Payment Gateway in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. GMO Payment Gateway's value of 65.00% is 60.7% above this benchmark. Historically, GMO Payment Gateway's own Gross Margin % has ranged from 63.35 to 77.14 over the past decade. While the company's 10-year median is 67.36 vs. the industry median of 40.45, GMO Payment Gateway 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 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. GMO Payment Gateway's current Gross Margin % of 65.00% is 60.7% 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 GMO Payment Gateway and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMO Payment Gateway's current Gross Margin % is 65.00%, which is near median its own 10-year median of 67.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO Payment Gateway stock overvalued right now?
GMO Payment Gateway (STU:3RH) has a current Gross Margin % of 65.00%. The stock's GF Value™ is €57.25, compared to a current price of €49.60 — trading 13.4% below its estimated fair value. The current Gross Margin % is 65.00%, which is near median its 10-year median of 67.36 and 60.7% above the Software industry median of 40.45. GMO Payment Gateway's overall GF Score™ is 91/100 with 3 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 GMO Payment Gateway (STU:3RH), the current Gross Margin % is 65.00% 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 GMO Payment Gateway (STU:3RH) Overvalued in 2026?
Based on GuruFocus' analysis, GMO Payment Gateway stock appears to be undervalued.
The current stock price of €49.60 is trading 13.4% below its estimated GF Value™ of €57.25.
Key valuation signals for STU:3RH:
Gross Margin %: 65.00% (near median its 10-year median of 67.36)
GF Value™: €57.25 vs. price of €49.60 (13.4% below fair value)
Industry Position: 60.7% above the Software median (#626 of 2680)
No single metric tells the full story. See the STU:3RH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GMO Payment Gateway is a major Japanese provider of cashless and online payment infrastructure, serving many sectors including digital content and telecommunications, utilities, retail and hospitality, financial services, healthcare, and education. It serves a wide array of clients, from government agencies and municipalities to enterprises and merchants, across online and offline channels, including e-commerce platforms, physical stores, and unattended machines. Its services encompass payment processing, settlement solutions, and ancillary offerings such as early or deferred settlement services, transaction lending, buy now, pay later, online advertising, and internet security. GMO is expanding into adjacent financial technology operations, and gradually across Asia and North America.
91GF Score
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