CSS HOLDINGSTSE:2304 +0.98%67 Gross Margin % is 17.44% as of Mar. 2026, which is 5% above its 10-year median of 16.64. GuruFocus rates TSE:2304 with a GF Score™ of 67/100 and a GF Value™ of 円1,089.35 (Modestly Undervalued). Among 1,008 Business Services companies, CSS HOLDINGS ranks worse than 83.23% on this metric.
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
CSS HOLDINGS had a gross margin of 17.44% for the quarter that ended in Mar. 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.
CSS HOLDINGS Gross Margin % Related Terms
CSS HOLDINGS Gross Margin % Historical Data
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The historical data trend for CSS HOLDINGS'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:2304 vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, CSS HOLDINGS'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.
CSS HOLDINGS Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, CSS HOLDINGS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CSS HOLDINGS'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.
CSS HOLDINGS (TSE:2304) has a Gross Margin % of 17.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CSS HOLDINGS and its competitors. This is near median its historical median of 16.64. Over the past decade, CSS HOLDINGS's Gross Margin % has ranged from 8.99 to 18.35. According to the industry distribution chart, CSS HOLDINGS ranks #839 out of 1008 companies in the Business Services industry, placing it in the top 83.2%.
Is CSS HOLDINGS's Gross Margin % too high?
CSS HOLDINGS's current Gross Margin % of 17.44% is near median its 10-year median of 16.64. Over the past 10 years, this metric has ranged from a low of 8.99 to a high of 18.35. The Business Services industry median Gross Margin % is 34.52. CSS HOLDINGS's value of 17.44% is 49.5% below this industry median. Based on the distribution chart, CSS HOLDINGS ranks #839 out of 1008 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, CSS HOLDINGS has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CSS HOLDINGS's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, CSS HOLDINGS ranks #839 out of 1008 companies for Gross Margin %. This places CSS HOLDINGS in the lower half of its industry. The industry median Gross Margin % is 34.52. CSS HOLDINGS's value of 17.44% is 49.5% below this benchmark. Historically, CSS HOLDINGS's own Gross Margin % has ranged from 8.99 to 18.35 over the past decade. While the company's 10-year median is 16.64 vs. the industry median of 34.52, CSS HOLDINGS 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 34.52, based on 1,008 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. CSS HOLDINGS's current Gross Margin % of 17.44% is 49.5% 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 CSS HOLDINGS and its competitors. For the Business Services industry, the median Gross Margin % is 34.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CSS HOLDINGS's current Gross Margin % is 17.44%, which is near median its own 10-year median of 16.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CSS HOLDINGS stock overvalued right now?
Based on GuruFocus' analysis, CSS HOLDINGS (TSE:2304) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,089.35, compared to a current price of 円926.00 — trading 15% below its estimated fair value. The current Gross Margin % is 17.44%, which is near median its 10-year median of 16.64 and 49.5% below the Business Services industry median of 34.52. CSS HOLDINGS's overall GF Score™ is 67/100. 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 CSS HOLDINGS (TSE:2304), the current Gross Margin % is 17.44% 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 CSS HOLDINGS (TSE:2304) Overvalued in 2026?
Based on GuruFocus' analysis, CSS HOLDINGS stock appears to be undervalued.
The current stock price of 円926.00 is trading 15% below its estimated GF Value™ of 円1,089.35.
GuruFocus considers CSS HOLDINGS to be Modestly Undervalued.
Key valuation signals for TSE:2304:
Gross Margin %: 17.44% (near median its 10-year median of 16.64)
GF Value™: 円1,089.35 vs. price of 円926.00 (15% below fair value)
Industry Position: 49.5% below the Business Services median (#839 of 1008)
No single metric tells the full story. See the TSE:2304 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CSS HOLDINGS Ltd is a holding company engaged in the operation and management of its group companies. It operates Steward Business; dishwashing and management work centered on hotels and restaurants, Food Business; which handles employee cafeteria and restaurant management contracts through its subsidiaries, Space Produce Business; designs, constructs, manages, and sells items related to video, audio, broadcasting and security, and Others includes general affairs, personnel, and management related business.
67GF Score
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