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Densan CoTSE:3640 +2.29%69 Gross Margin % is 40.37% as of Mar. 2026, which is 18% above its 10-year median of 34.30. GuruFocus rates TSE:3640 with a GF Score™ of 69/100 and a GF Value™ of 円2,525.98 (Fairly Valued). Among 1,010 Semiconductors companies, Densan Co ranks better than 65.45% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Densan Co's Gross Profit for the
six
months ended in Mar. 2026 was 円7,022 Mil. Densan Co's Revenue for the
six
months ended in Mar. 2026 was 円17,392 Mil. Therefore, Densan Co's Gross Margin % for the quarter that ended in Mar. 2026 was 40.37%.
The historical rank and industry rank for Densan Co's Gross Margin % or its related term are showing as below:
TSE:3640'
s Gross Margin % Range Over the Past 10 Years
Min: 22.45 Med: 34.3 Max: 37.84
Current: 37.84
During the past 13 years, the highestGross Margin % of Densan Co was 37.84%. The lowest was 22.45%. And the median was 34.30%.
TSE:3640's Gross Margin % is ranked better than 65.45% of 1010
companies
in the Semiconductors industry
Industry Median: 29.61
vs TSE:3640: 37.84
Densan Co had a gross margin of 40.37% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Densan Co was 6.10% per year.
Densan Co (TSE:3640) 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
Densan Co had a gross margin of 40.37% for the quarter that ended in Mar. 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.
Densan Co Gross Margin % Related Terms
Densan Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Densan 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:3640 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Densan 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.
Densan Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Densan Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Densan 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.
Densan Co (TSE:3640) has a Gross Margin % of 40.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Densan Co and its competitors. This is 18% above median its historical median of 34.30. Over the past decade, Densan Co's Gross Margin % has ranged from 22.45 to 37.84. According to the industry distribution chart, Densan Co ranks #349 out of 1010 companies in the Semiconductors industry, placing it in the top 34.6%.
Is Densan Co's Gross Margin % too high?
Densan Co's current Gross Margin % of 40.37% is 18% above median its 10-year median of 34.30. Over the past 10 years, this metric has ranged from a low of 22.45 to a high of 37.84. The Semiconductors industry median Gross Margin % is 29.61. Densan Co's value of 40.37% is 36.3% above this industry median. Based on the distribution chart, Densan Co ranks #349 out of 1010 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Densan Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Densan Co's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Densan Co ranks #349 out of 1010 companies for Gross Margin %. This puts Densan Co in the upper half of its industry. The industry median Gross Margin % is 29.61. Densan Co's value of 40.37% is 36.3% above this benchmark. Historically, Densan Co's own Gross Margin % has ranged from 22.45 to 37.84 over the past decade. While the company's 10-year median is 34.30 vs. the industry median of 29.61, Densan 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,010 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. Densan Co's current Gross Margin % of 40.37% is 36.3% 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 Densan Co and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Densan Co's current Gross Margin % is 40.37%, which is 18% above median its own 10-year median of 34.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Densan Co stock overvalued right now?
Based on GuruFocus' analysis, Densan Co (TSE:3640) is currently considered Fairly Valued. The stock's GF Value™ is 円2,525.98, compared to a current price of 円2,414.00 — trading 4.4% below its estimated fair value. The current Gross Margin % is 40.37%, which is 18% above median its 10-year median of 34.30 and 36.3% above the Semiconductors industry median of 29.61. Densan Co's overall GF Score™ is 69/100. 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 Densan Co (TSE:3640), the current Gross Margin % is 40.37% 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 Densan Co (TSE:3640) Overvalued in 2026?
Based on GuruFocus' analysis, Densan Co stock appears to be undervalued.
The current stock price of 円2,414.00 is trading 4.4% below its estimated GF Value™ of 円2,525.98.
GuruFocus considers Densan Co to be Fairly Valued.
Key valuation signals for TSE:3640:
Gross Margin %: 40.37% (18% above median its 10-year median of 34.30)
GF Value™: 円2,525.98 vs. price of 円2,414.00 (4.4% below fair value)
Industry Position: 36.3% above the Semiconductors median (#349 of 1010)
No single metric tells the full story. See the TSE:3640 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Densan Co Ltd is engaged in the development and provision of information systems and related services. Its reporting segments include the Public Sector and the Industrial Sector. In the Public Sector, it serves local governments and related organizations by developing, selling, and supporting package systems, as well as offering equipment sales and information processing services. The Industrial Sector focuses on private enterprises and medical and welfare institutions, offering software development, equipment sales, and various information services. It also includes internet connectivity services for general consumers. It generates the majority of its revenue from the Public Sector segment.
69GF Score
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