Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Palemo Holdings CoTSE:2778 48 Gross Margin % is 52.20% as of Feb. 2026, which is 1% below its 10-year median of 52.62. GuruFocus rates TSE:2778 with a GF Score™ of 48/100 and a GF Value™ of 円157.91 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Palemo Holdings Co ranks better than 76.45% on this metric.
The historical rank and industry rank for Palemo Holdings Co's Gross Margin % or its related term are showing as below:
TSE:2778'
s Gross Margin % Range Over the Past 10 Years
Min: 51.45 Med: 52.62 Max: 55.7
Current: 52.74
During the past 13 years, the highestGross Margin % of Palemo Holdings Co was 55.70%. The lowest was 51.45%. And the median was 52.62%.
TSE:2778's Gross Margin % is ranked better than 76.45% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.29
vs TSE:2778: 52.74
Palemo Holdings Co had a gross margin of 52.20% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Palemo Holdings Co was 0.40% per year.
Palemo Holdings Co (TSE:2778) 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
Palemo Holdings Co had a gross margin of 52.20% for the quarter that ended in Feb. 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.
Palemo Holdings Co Gross Margin % Related Terms
Palemo Holdings Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Palemo Holdings 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:2778 vs TJX, ROST, BURL: Gross Margin % Comparison
For the Apparel Retail subindustry, Palemo Holdings 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.
Palemo Holdings Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Palemo Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Palemo Holdings 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.
Palemo Holdings Co (TSE:2778) has a Gross Margin % of 52.20% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Palemo Holdings Co and its competitors. This is near median its historical median of 52.62. Over the past decade, Palemo Holdings Co's Gross Margin % has ranged from 51.45 to 55.70. According to the industry distribution chart, Palemo Holdings Co ranks #263 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 23.5%.
Is Palemo Holdings Co's Gross Margin % too high?
Palemo Holdings Co's current Gross Margin % of 52.20% is near median its 10-year median of 52.62. Over the past 10 years, this metric has ranged from a low of 51.45 to a high of 55.70. The Retail - Cyclical industry median Gross Margin % is 36.29. Palemo Holdings Co's value of 52.20% is 43.8% above this industry median. Based on the distribution chart, Palemo Holdings Co ranks #263 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Palemo Holdings Co has a GF Score™ of 48/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Palemo Holdings Co's Gross Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Palemo Holdings Co ranks #263 out of 1117 companies for Gross Margin %. This places Palemo Holdings Co in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.29. Palemo Holdings Co's value of 52.20% is 43.8% above this benchmark. Historically, Palemo Holdings Co's own Gross Margin % has ranged from 51.45 to 55.70 over the past decade. While the company's 10-year median is 52.62 vs. the industry median of 36.29, Palemo Holdings Co 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.29, based on 1,117 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. Palemo Holdings Co's current Gross Margin % of 52.20% is 43.8% 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 Palemo Holdings Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palemo Holdings Co's current Gross Margin % is 52.20%, which is near median its own 10-year median of 52.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palemo Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Palemo Holdings Co (TSE:2778) is currently considered Modestly Undervalued. The stock's GF Value™ is 円157.91, compared to a current price of 円112.00 — trading 29.1% below its estimated fair value. The current Gross Margin % is 52.20%, which is near median its 10-year median of 52.62 and 43.8% above the Retail - Cyclical industry median of 36.29. Palemo Holdings Co's overall GF Score™ is 48/100 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 Palemo Holdings Co (TSE:2778), the current Gross Margin % is 52.20% 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 Palemo Holdings Co (TSE:2778) Overvalued in 2026?
Based on GuruFocus' analysis, Palemo Holdings Co stock appears to be undervalued.
The current stock price of 円112.00 is trading 29.1% below its estimated GF Value™ of 円157.91.
GuruFocus considers Palemo Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:2778:
Gross Margin %: 52.20% (near median its 10-year median of 52.62)
GF Value™: 円157.91 vs. price of 円112.00 (29.1% below fair value)
Industry Position: 43.8% above the Retail - Cyclical median (#263 of 1117)
No single metric tells the full story. See the TSE:2778 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palemo Holdings Co Ltd is a holding company based in Japan. The business of the company includes operating apparel stores for women, variety merchandise, and bag specialty store chain. The brands of the company include Palemo, Ludic park, Noemie, Hare no hi, Lilou de chouchou, Daisy Merry, and others.
48GF Score
Get the complete analysis for TSE:2778
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:2778 has been successfully added to your 
