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Digital Media Professionals (TSE:3652) 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
Digital Media Professionals had a gross margin of 37.81% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Digital Media Professionals Gross Margin % Related Terms
Digital Media Professionals Gross Margin % Historical Data
* 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.
For the Electronic Components subindustry, Digital Media Professionals'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.
Digital Media Professionals Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Digital Media Professionals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Media Professionals'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.
Digital Media Professionals (TSE:3652) has a Gross Margin % of 37.81% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Media Professionals and its competitors. This is 10% below median its historical median of 41.85. Over the past decade, Digital Media Professionals' Gross Margin % has ranged from 33.19 to 64.39. According to the industry distribution chart, Digital Media Professionals ranks #659 out of 2455 companies in the Hardware industry, placing it in the top 26.8%.
Is Digital Media Professionals' Gross Margin % too high?
Digital Media Professionals' current Gross Margin % of 37.81% is 10% below median its 10-year median of 41.85. Over the past 10 years, this metric has ranged from a low of 33.19 to a high of 64.39. The Hardware industry median Gross Margin % is 24.50. Digital Media Professionals' value of 37.81% is 54.3% above this industry median. Based on the distribution chart, Digital Media Professionals ranks #659 out of 2455 companies in the Hardware industry, which is above the industry midpoint. Overall, Digital Media Professionals has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Media Professionals' Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Digital Media Professionals ranks #659 out of 2455 companies for Gross Margin %. This puts Digital Media Professionals in the upper half of its industry. The industry median Gross Margin % is 24.50. Digital Media Professionals' value of 37.81% is 54.3% above this benchmark. Historically, Digital Media Professionals' own Gross Margin % has ranged from 33.19 to 64.39 over the past decade. While the company's 10-year median is 41.85 vs. the industry median of 24.50, Digital Media Professionals 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,455 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. Digital Media Professionals's current Gross Margin % of 37.81% is 54.3% 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 Digital Media Professionals and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Media Professionals's current Gross Margin % is 37.81%, which is 10% below median its own 10-year median of 41.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Media Professionals stock overvalued right now?
Based on GuruFocus' analysis, Digital Media Professionals (TSE:3652) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,090.81, compared to a current price of 円2,410.00 — trading 15.3% above its estimated fair value. The current Gross Margin % is 37.81%, which is 10% below median its 10-year median of 41.85 and 54.3% above the Hardware industry median of 24.50. Digital Media Professionals' overall GF Score™ is 68/100 with 4 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 Digital Media Professionals (TSE:3652), the current Gross Margin % is 37.81% 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 Digital Media Professionals (TSE:3652) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Media Professionals stock appears to be overvalued.
The current stock price of 円2,410.00 is trading 15.3% above its estimated GF Value™ of 円2,090.81.
GuruFocus considers Digital Media Professionals to be Modestly Overvalued.
Key valuation signals for TSE:3652:
Gross Margin %: 37.81% (10% below median its 10-year median of 41.85)
GF Value™: 円2,090.81 vs. price of 円2,410.00 (15.3% above fair value)
Industry Position: 54.3% above the Hardware median (#659 of 2455)
No single metric tells the full story. See the TSE:3652 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Media Professionals Inc focuses on developing graphics IP cores, encompassing both hardware and software IP, for semiconductor manufacturers and producers of semiconductor-integrated products such as gaming consoles, mobile devices, automotive systems, and home appliances.
68GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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