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Tea Life Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.6%.
The historical rank and industry rank for Tea Life Co's Gross Margin % or its related term are showing as below:
TSE:3172'
s Gross Margin % Range Over the Past 10 Years
Min: 34.22 Med: 48.53 Max: 65.45
Current: 37.73
During the past 13 years, the highestGross Margin % of Tea Life Co was 65.45%. The lowest was 34.22%. And the median was 48.53%.
TSE:3172's Gross Margin % is ranked better than 52.92% of 1113
companies
in the Retail - Cyclical industry
Industry Median: 36.25
vs TSE:3172: 37.73
Tea Life Co had a gross margin of N/A% for the quarter that ended in Jan. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tea Life Co was -7.60% per year.
Tea Life Co (TSE:3172) 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
Tea Life Co had a gross margin of N/A% for the quarter that ended in Jan. 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.
Tea Life Co Gross Margin % Related Terms
Tea Life Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tea Life 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:3172 vs AMZN, BABA, PDD: Gross Margin % Comparison
For the Internet Retail subindustry, Tea Life 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.
Tea Life Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Tea Life Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tea Life 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.
Tea Life Co (TSE:3172) has a Gross Margin % of 0.00% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tea Life Co and its competitors. Over the past decade, Tea Life Co's Gross Margin % has ranged from 34.22 to 65.45. According to the industry distribution chart, Tea Life Co ranks #524 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 47.1%.
Is Tea Life Co's Gross Margin % too high?
Tea Life Co's current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 34.22 to a high of 65.45. Based on the distribution chart, Tea Life Co ranks #524 out of 1113 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Tea Life Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tea Life Co's Gross Margin % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Tea Life Co ranks #524 out of 1113 companies for Gross Margin %. This puts Tea Life Co in the upper half of its industry. The industry median Gross Margin % is 36.25. Historically, Tea Life Co's own Gross Margin % has ranged from 34.22 to 65.45 over the past decade. 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 36.25, based on 1,113 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. 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 Tea Life Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tea Life Co's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tea Life Co stock overvalued right now?
Based on GuruFocus' analysis, Tea Life Co (TSE:3172) is currently considered Significantly Overvalued. The stock's GF Value™ is 円779.00, compared to a current price of 円1,165.00 — trading 49.6% above its estimated fair value. The current Gross Margin % is 0.00%. Tea Life Co's overall GF Score™ is 61/100 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 Tea Life Co (TSE:3172), the current Gross Margin % is 0.00% as of Jan. 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 Tea Life Co (TSE:3172) Overvalued in 2026?
Based on GuruFocus' analysis, Tea Life Co stock appears to be overvalued.
The current stock price of 円1,165.00 is trading 49.6% above its estimated GF Value™ of 円779.00.
GuruFocus considers Tea Life Co to be Significantly Overvalued.
Key valuation signals for TSE:3172:
Gross Margin %: 0.00%
GF Value™: 円779.00 vs. price of 円1,165.00 (49.6% above fair value)
No single metric tells the full story. See the TSE:3172 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tea Life Co Ltd is a Japan-based company involved in retail operations, wholesale distribution to mail-order companies and retail stores, as well as real estate leasing. The company operates through three reportable segments: the Wholesale Business, which supplies daily essentials and communication-related products to corporate clients; the Retail Business, which sells health foods, cosmetics, baby goods, and children's furniture directly to consumers through e-commerce channels; and the Property Management Business, which manages the leasing of company-owned properties and handles logistics-related real estate services. It generates the majority of its revenue from the Wholesale segment.
61GF Score
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