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MorphoTSE:3653 57 Gross Margin % is 33.28% as of Apr. 2026, which is 48% below its 10-year median of 63.42. GuruFocus rates TSE:3653 with a GF Score™ of 57/100 and a GF Value™ of 円1,460.13 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,683 Software companies, Morpho ranks better than 59.11% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Morpho's Gross Profit for the
six
months ended in Apr. 2026 was 円383 Mil. Morpho's Revenue for the
six
months ended in Apr. 2026 was 円1,152 Mil. Therefore, Morpho's Gross Margin % for the quarter that ended in Apr. 2026 was 33.28%.
Warning Sign:
Morpho Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Morpho's Gross Margin % or its related term are showing as below:
TSE:3653'
s Gross Margin % Range Over the Past 10 Years
Min: 47.67 Med: 63.42 Max: 84.77
Current: 48.26
During the past 13 years, the highestGross Margin % of Morpho was 84.77%. The lowest was 47.67%. And the median was 63.42%.
TSE:3653's Gross Margin % is ranked better than 59.11% of 2683
companies
in the Software industry
Industry Median: 40.47
vs TSE:3653: 48.26
Morpho had a gross margin of 33.28% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Morpho was -1.60% per year.
Morpho (TSE:3653) 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
Morpho had a gross margin of 33.28% for the quarter that ended in Apr. 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.
Morpho Gross Margin % Related Terms
Morpho Gross Margin % Historical Data
* Premium members only.
The historical data trend for Morpho'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:3653 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Morpho'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.
Morpho Gross Margin % vs Software Industry
For the Software industry and Technology sector, Morpho's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Morpho'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.
Morpho (TSE:3653) has a Gross Margin % of 33.28% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Morpho and its competitors. This is 48% below median its historical median of 63.42. Over the past decade, Morpho's Gross Margin % has ranged from 47.67 to 84.77. According to the industry distribution chart, Morpho ranks #1097 out of 2683 companies in the Software industry, placing it in the top 40.9%.
Is Morpho's Gross Margin % too high?
Morpho's current Gross Margin % of 33.28% is 48% below median its 10-year median of 63.42. Over the past 10 years, this metric has ranged from a low of 47.67 to a high of 84.77. The Software industry median Gross Margin % is 40.47. Morpho's value of 33.28% is 17.8% below this industry median. Based on the distribution chart, Morpho ranks #1097 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, Morpho has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Morpho's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Morpho ranks #1097 out of 2683 companies for Gross Margin %. This puts Morpho in the upper half of its industry. The industry median Gross Margin % is 40.47. Morpho's value of 33.28% is 17.8% below this benchmark. Historically, Morpho's own Gross Margin % has ranged from 47.67 to 84.77 over the past decade. While the company's 10-year median is 63.42 vs. the industry median of 40.47, Morpho 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 Software company?
The median Gross Margin % among Software companies is 40.47, based on 2,683 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. Morpho's current Gross Margin % of 33.28% is 17.8% 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 Morpho and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morpho's current Gross Margin % is 33.28%, which is 48% below median its own 10-year median of 63.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morpho stock overvalued right now?
Based on GuruFocus' analysis, Morpho (TSE:3653) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,460.13, compared to a current price of 円628.00 — trading 57% below its estimated fair value. The current Gross Margin % is 33.28%, which is 48% below median its 10-year median of 63.42 and 17.8% below the Software industry median of 40.47. Morpho's overall GF Score™ is 57/100 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 Morpho (TSE:3653), the current Gross Margin % is 33.28% as of Apr. 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 Morpho (TSE:3653) Overvalued in 2026?
Based on GuruFocus' analysis, Morpho stock appears to be undervalued.
The current stock price of 円628.00 is trading 57% below its estimated GF Value™ of 円1,460.13.
GuruFocus considers Morpho to be Significantly Undervalued.
Key valuation signals for TSE:3653:
Gross Margin %: 33.28% (48% below median its 10-year median of 63.42)
GF Value™: 円1,460.13 vs. price of 円628.00 (57% below fair value)
Industry Position: 17.8% below the Software median (#1097 of 2683)
No single metric tells the full story. See the TSE:3653 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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