KLabTSE:3656 -1.52%46 Gross Margin % is 12.39% as of Dec. 2025, which is 36% below its 10-year median of 19.25. GuruFocus rates TSE:3656 with a GF Score™ of 46/100 and a GF Value™ of 円95.59 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 497 Interactive Media companies, KLab ranks worse than 94.57% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. KLab's Gross Profit for the
three
months ended in Dec. 2025 was 円238 Mil. KLab's Revenue for the
three
months ended in Dec. 2025 was 円1,922 Mil. Therefore, KLab's Gross Margin % for the quarter that ended in Dec. 2025 was 12.39%.
Warning Sign:
KLab Inc gross margin has been in long-term decline. The average rate of decline per year is -6.1%.
The historical rank and industry rank for KLab's Gross Margin % or its related term are showing as below:
TSE:3656'
s Gross Margin % Range Over the Past 10 Years
Min: 10.74 Med: 19.25 Max: 35.72
Current: 10.74
During the past 13 years, the highestGross Margin % of KLab was 35.72%. The lowest was 10.74%. And the median was 19.25%.
TSE:3656's Gross Margin % is ranked worse than 94.57% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs TSE:3656: 10.74
KLab had a gross margin of 12.39% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for KLab was -6.10% per year.
KLab (TSE:3656) 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
KLab had a gross margin of 12.39% for the quarter that ended in Dec. 2025 => 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.
KLab Gross Margin % Related Terms
KLab Gross Margin % Historical Data
* Premium members only.
The historical data trend for KLab'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:3656 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, KLab'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.
KLab Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, KLab's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KLab'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.
KLab (TSE:3656) has a Gross Margin % of 12.39% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on KLab and its competitors. This is 36% below median its historical median of 19.25. Over the past decade, KLab's Gross Margin % has ranged from 10.74 to 35.72. According to the industry distribution chart, KLab ranks #470 out of 497 companies in the Interactive Media industry, placing it in the top 94.6%.
Is KLab's Gross Margin % too high?
KLab's current Gross Margin % of 12.39% is 36% below median its 10-year median of 19.25. Over the past 10 years, this metric has ranged from a low of 10.74 to a high of 35.72. The Interactive Media industry median Gross Margin % is 62.58. KLab's value of 12.39% is 80.2% below this industry median. Based on the distribution chart, KLab ranks #470 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, KLab has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does KLab's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, KLab ranks #470 out of 497 companies for Gross Margin %. This places KLab in the lower half of its industry. The industry median Gross Margin % is 62.58. KLab's value of 12.39% is 80.2% below this benchmark. Historically, KLab's own Gross Margin % has ranged from 10.74 to 35.72 over the past decade. While the company's 10-year median is 19.25 vs. the industry median of 62.58, KLab 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. KLab's current Gross Margin % of 12.39% is 80.2% 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 KLab and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLab's current Gross Margin % is 12.39%, which is 36% below median its own 10-year median of 19.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLab stock overvalued right now?
Based on GuruFocus' analysis, KLab (TSE:3656) is currently considered Significantly Overvalued. The stock's GF Value™ is 円95.59, compared to a current price of 円195.00 — trading 104% above its estimated fair value. The current Gross Margin % is 12.39%, which is 36% below median its 10-year median of 19.25 and 80.2% below the Interactive Media industry median of 62.58. KLab's overall GF Score™ is 46/100 with 5 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 KLab (TSE:3656), the current Gross Margin % is 12.39% as of Dec. 2025. 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 KLab (TSE:3656) Overvalued in 2026?
Based on GuruFocus' analysis, KLab stock appears to be overvalued.
The current stock price of 円195.00 is trading 104% above its estimated GF Value™ of 円95.59.
GuruFocus considers KLab to be Significantly Overvalued.
Key valuation signals for TSE:3656:
Gross Margin %: 12.39% (36% below median its 10-year median of 19.25)
GF Value™: 円95.59 vs. price of 円195.00 (104% above fair value)
Industry Position: 80.2% below the Interactive Media median (#470 of 497)
No single metric tells the full story. See the TSE:3656 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KLab Inc is the Japan-based software company. The principal activities of the company are planning, developing, and operating online mobile games. The company's business is broadly divided into two areas - game business and other business. The game business is focused on designing and developing online mobile games. The other business is involved in designing, developing, and providing smartphone-related applications, services, and server infrastructures. The company has an operational presence across China, Singapore, Japan and the United States.
46GF Score
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