Care Service CoTSE:2425 -0.32%60 Gross Margin % is 9.15% as of Sep. 2025, which is 31% below its 10-year median of 13.17. GuruFocus rates TSE:2425 with a GF Score™ of 60/100 and a GF Value™ of 円817.17 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 629 Healthcare Providers & Services companies, Care Service Co ranks worse than 94.28% on this metric.
The historical rank and industry rank for Care Service Co's Gross Margin % or its related term are showing as below:
TSE:2425'
s Gross Margin % Range Over the Past 10 Years
Min: 11.54 Med: 13.17 Max: 13.58
Current: 11.54
During the past 13 years, the highestGross Margin % of Care Service Co was 13.58%. The lowest was 11.54%. And the median was 13.17%.
TSE:2425's Gross Margin % is ranked worse than 94.28% of 629
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs TSE:2425: 11.54
Care Service Co had a gross margin of 9.15% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Care Service Co was 1.70% per year.
Care Service Co (TSE:2425) 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
Care Service Co had a gross margin of 9.15% for the quarter that ended in Sep. 2025 => 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.
Care Service Co Gross Margin % Related Terms
Care Service Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Care Service 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.
TSE:2425 vs HCA, THC, DVA: Gross Margin % Comparison
For the Medical Care Facilities subindustry, Care Service 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.
Care Service Co Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Care Service Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Care Service 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.
Care Service Co (TSE:2425) has a Gross Margin % of 9.15% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Care Service Co and its competitors. This is 31% below median its historical median of 13.17. Over the past decade, Care Service Co's Gross Margin % has ranged from 11.54 to 13.58. According to the industry distribution chart, Care Service Co ranks #593 out of 629 companies in the Healthcare Providers & Services industry, placing it in the top 94.3%.
Is Care Service Co's Gross Margin % too high?
Care Service Co's current Gross Margin % of 9.15% is 31% below median its 10-year median of 13.17. Over the past 10 years, this metric has ranged from a low of 11.54 to a high of 13.58. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Care Service Co's value of 9.15% is 77.2% below this industry median. Based on the distribution chart, Care Service Co ranks #593 out of 629 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Care Service Co has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Care Service Co's Gross Margin % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Care Service Co ranks #593 out of 629 companies for Gross Margin %. This places Care Service Co in the lower half of its industry. The industry median Gross Margin % is 40.09. Care Service Co's value of 9.15% is 77.2% below this benchmark. Historically, Care Service Co's own Gross Margin % has ranged from 11.54 to 13.58 over the past decade. While the company's 10-year median is 13.17 vs. the industry median of 40.09, Care Service 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 629 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. Care Service Co's current Gross Margin % of 9.15% is 77.2% 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 Care Service 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. Care Service Co's current Gross Margin % is 9.15%, which is 31% below median its own 10-year median of 13.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Care Service Co stock overvalued right now?
Based on GuruFocus' analysis, Care Service Co (TSE:2425) is currently considered Modestly Undervalued. The stock's GF Value™ is 円817.17, compared to a current price of 円624.00 — trading 23.6% below its estimated fair value. The current Gross Margin % is 9.15%, which is 31% below median its 10-year median of 13.17 and 77.2% below the Healthcare Providers & Services industry median of 40.09. Care Service Co's overall GF Score™ is 60/100 with 1 warning sign 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 Care Service Co (TSE:2425), the current Gross Margin % is 9.15% as of Sep. 2025. 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 Care Service Co (TSE:2425) Overvalued in 2026?
Based on GuruFocus' analysis, Care Service Co stock appears to be undervalued.
The current stock price of 円624.00 is trading 23.6% below its estimated GF Value™ of 円817.17.
GuruFocus considers Care Service Co to be Modestly Undervalued.
Key valuation signals for TSE:2425:
Gross Margin %: 9.15% (31% below median its 10-year median of 13.17)
GF Value™: 円817.17 vs. price of 円624.00 (23.6% below fair value)
Industry Position: 77.2% below the Healthcare Providers & Services median (#593 of 629)
No single metric tells the full story. See the TSE:2425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Care Service Co Ltd provides nursing care services to the handicapped and elderly in Tokyo. The Company's services include day-care, 24-hour home-visit care, home-stay care, and bathing services, small-scale multifunctional in-home care, clean service. It also lends and sales assistive welfare equipment.
60GF Score
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