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FFRI SecurityTSE:3692 +1.71%86 Gross Margin % is 56.03% as of Mar. 2026, which is 25% below its 10-year median of 74.52. GuruFocus rates TSE:3692 with a GF Score™ of 86/100 and a GF Value™ of 円4,388.19 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,683 Software companies, FFRI Security ranks better than 71% on this metric.
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
FFRI Security had a gross margin of 56.03% 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.
FFRI Security Gross Margin % Related Terms
FFRI Security Gross Margin % Historical Data
* Premium members only.
The historical data trend for FFRI Security'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:3692 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, FFRI Security'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.
FFRI Security Gross Margin % vs Software Industry
For the Software industry and Technology sector, FFRI Security's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FFRI Security'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.
FFRI Security (TSE:3692) has a Gross Margin % of 56.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on FFRI Security and its competitors. This is 25% below median its historical median of 74.52. Over the past decade, FFRI Security's Gross Margin % has ranged from 59.80 to 87.64. According to the industry distribution chart, FFRI Security ranks #778 out of 2683 companies in the Software industry, placing it in the top 29%.
Is FFRI Security's Gross Margin % too high?
FFRI Security's current Gross Margin % of 56.03% is 25% below median its 10-year median of 74.52. Over the past 10 years, this metric has ranged from a low of 59.80 to a high of 87.64. The Software industry median Gross Margin % is 40.47. FFRI Security's value of 56.03% is 38.4% above this industry median. Based on the distribution chart, FFRI Security ranks #778 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, FFRI Security has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FFRI Security's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, FFRI Security ranks #778 out of 2683 companies for Gross Margin %. This puts FFRI Security in the upper half of its industry. The industry median Gross Margin % is 40.47. FFRI Security's value of 56.03% is 38.4% above this benchmark. Historically, FFRI Security's own Gross Margin % has ranged from 59.80 to 87.64 over the past decade. While the company's 10-year median is 74.52 vs. the industry median of 40.47, FFRI Security 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 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. FFRI Security's current Gross Margin % of 56.03% is 38.4% 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 FFRI Security 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. FFRI Security's current Gross Margin % is 56.03%, which is 25% below median its own 10-year median of 74.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FFRI Security stock overvalued right now?
Based on GuruFocus' analysis, FFRI Security (TSE:3692) is currently considered Modestly Overvalued. The stock's GF Value™ is 円4,388.19, compared to a current price of 円5,360.00 — trading 22.1% above its estimated fair value. The current Gross Margin % is 56.03%, which is 25% below median its 10-year median of 74.52 and 38.4% above the Software industry median of 40.47. FFRI Security's overall GF Score™ is 86/100 with 2 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 FFRI Security (TSE:3692), the current Gross Margin % is 56.03% 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 FFRI Security (TSE:3692) Overvalued in 2026?
Based on GuruFocus' analysis, FFRI Security stock appears to be overvalued.
The current stock price of 円5,360.00 is trading 22.1% above its estimated GF Value™ of 円4,388.19.
GuruFocus considers FFRI Security to be Modestly Overvalued.
Key valuation signals for TSE:3692:
Gross Margin %: 56.03% (25% below median its 10-year median of 74.52)
GF Value™: 円4,388.19 vs. price of 円5,360.00 (22.1% above fair value)
Industry Position: 38.4% above the Software median (#778 of 2683)
No single metric tells the full story. See the TSE:3692 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FFRI Security Inc is engaged in providing computer security research, consulting, information provision, education, network system research, computer software and computer program planning, development, sales, leasing, maintenance, management, operation, and the acquisition, transfer, lending, and management of related property right such as copyrights, patent rights, utility model rights, trademark rights, and design rights.
86GF Score
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