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SobalTSE:2186 -2.17%68 Gross Margin % is 17.37% as of Feb. 2026, which is 9% below its 10-year median of 19.07. GuruFocus rates TSE:2186 with a GF Score™ of 68/100 and a GF Value™ of 円1,100.21 (Modestly Undervalued). Among 2,685 Software companies, Sobal ranks worse than 80.56% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Sobal's Gross Profit for the
three
months ended in Feb. 2026 was 円418 Mil. Sobal's Revenue for the
three
months ended in Feb. 2026 was 円2,406 Mil. Therefore, Sobal's Gross Margin % for the quarter that ended in Feb. 2026 was 17.37%.
The historical rank and industry rank for Sobal's Gross Margin % or its related term are showing as below:
TSE:2186'
s Gross Margin % Range Over the Past 10 Years
Min: 15.63 Med: 19.07 Max: 19.9
Current: 19.2
During the past 13 years, the highestGross Margin % of Sobal was 19.90%. The lowest was 15.63%. And the median was 19.07%.
TSE:2186's Gross Margin % is ranked worse than 80.56% of 2685
companies
in the Software industry
Industry Median: 40.46
vs TSE:2186: 19.20
Sobal had a gross margin of 17.37% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sobal was 2.80% per year.
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
Sobal had a gross margin of 17.37% for the quarter that ended in Feb. 2026 => No sustainable 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.
Sobal Gross Margin % Related Terms
Sobal Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sobal'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.
TSE:2186 vs QH, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Sobal'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.
Sobal Gross Margin % vs Software Industry
For the Software industry and Technology sector, Sobal's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sobal'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.
Sobal (TSE:2186) has a Gross Margin % of 17.37% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sobal and its competitors. This is near median its historical median of 19.07. Over the past decade, Sobal's Gross Margin % has ranged from 15.63 to 19.90. According to the industry distribution chart, Sobal ranks #2163 out of 2685 companies in the Software industry, placing it in the top 80.6%.
Is Sobal's Gross Margin % too high?
Sobal's current Gross Margin % of 17.37% is near median its 10-year median of 19.07. Over the past 10 years, this metric has ranged from a low of 15.63 to a high of 19.90. The Software industry median Gross Margin % is 40.46. Sobal's value of 17.37% is 57.1% below this industry median. Based on the distribution chart, Sobal ranks #2163 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Sobal has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sobal's Gross Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Sobal ranks #2163 out of 2685 companies for Gross Margin %. This places Sobal in the lower half of its industry. The industry median Gross Margin % is 40.46. Sobal's value of 17.37% is 57.1% below this benchmark. Historically, Sobal's own Gross Margin % has ranged from 15.63 to 19.90 over the past decade. While the company's 10-year median is 19.07 vs. the industry median of 40.46, Sobal 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 Software company?
The median Gross Margin % among Software companies is 40.46, based on 2,685 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. Sobal's current Gross Margin % of 17.37% is 57.1% 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 Sobal and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sobal's current Gross Margin % is 17.37%, which is near median its own 10-year median of 19.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sobal stock overvalued right now?
Based on GuruFocus' analysis, Sobal (TSE:2186) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,100.21, compared to a current price of 円903.00 — trading 17.9% below its estimated fair value. The current Gross Margin % is 17.37%, which is near median its 10-year median of 19.07 and 57.1% below the Software industry median of 40.46. Sobal's overall GF Score™ is 68/100. 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 Sobal (TSE:2186), the current Gross Margin % is 17.37% as of Feb. 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 Sobal (TSE:2186) Overvalued in 2026?
Based on GuruFocus' analysis, Sobal stock appears to be undervalued.
The current stock price of 円903.00 is trading 17.9% below its estimated GF Value™ of 円1,100.21.
GuruFocus considers Sobal to be Modestly Undervalued.
Key valuation signals for TSE:2186:
Gross Margin %: 17.37% (near median its 10-year median of 19.07)
GF Value™: 円1,100.21 vs. price of 円903.00 (17.9% below fair value)
Industry Position: 57.1% below the Software median (#2163 of 2685)
No single metric tells the full story. See the TSE:2186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sobal Corp engages in the development of embedded software for digital appliances and research and development of wireless communication technologies in Japan. The solutions provided by the company include Embedded system development, Application development, Web application development, Cloud development, and Manual production.
68GF Score
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