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Nihon FalcomTSE:3723 +2.66%68 Gross Margin % is 94.82% as of Mar. 2026, which is 6% above its 10-year median of 89.05. GuruFocus rates TSE:3723 with a GF Score™ of 68/100 and a GF Value™ of 円1,730.16 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 498 Interactive Media companies, Nihon Falcom ranks better than 79.72% 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
Nihon Falcom had a gross margin of 94.82% 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.
Nihon Falcom Gross Margin % Related Terms
Nihon Falcom Gross Margin % Historical Data
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The historical data trend for Nihon Falcom'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:3723 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Nihon Falcom'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.
Nihon Falcom Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nihon Falcom's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nihon Falcom'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.
Nihon Falcom (TSE:3723) has a Gross Margin % of 94.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nihon Falcom and its competitors. This is near median its historical median of 89.05. Over the past decade, Nihon Falcom's Gross Margin % has ranged from 82.07 to 91.79. According to the industry distribution chart, Nihon Falcom ranks #101 out of 498 companies in the Interactive Media industry, placing it in the top 20.3%.
Is Nihon Falcom's Gross Margin % too high?
Nihon Falcom's current Gross Margin % of 94.82% is near median its 10-year median of 89.05. Over the past 10 years, this metric has ranged from a low of 82.07 to a high of 91.79. The Interactive Media industry median Gross Margin % is 62.13. Nihon Falcom's value of 94.82% is 52.6% above this industry median. Based on the distribution chart, Nihon Falcom ranks #101 out of 498 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Nihon Falcom has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Falcom's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nihon Falcom ranks #101 out of 498 companies for Gross Margin %. This places Nihon Falcom in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 62.13. Nihon Falcom's value of 94.82% is 52.6% above this benchmark. Historically, Nihon Falcom's own Gross Margin % has ranged from 82.07 to 91.79 over the past decade. While the company's 10-year median is 89.05 vs. the industry median of 62.13, Nihon Falcom 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.13, based on 498 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. Nihon Falcom's current Gross Margin % of 94.82% is 52.6% 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 Nihon Falcom and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Falcom's current Gross Margin % is 94.82%, which is near median its own 10-year median of 89.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Falcom stock overvalued right now?
Based on GuruFocus' analysis, Nihon Falcom (TSE:3723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,730.16, compared to a current price of 円2,627.00 — trading 51.8% above its estimated fair value. The current Gross Margin % is 94.82%, which is near median its 10-year median of 89.05 and 52.6% above the Interactive Media industry median of 62.13. Nihon Falcom's overall GF Score™ is 68/100 with 3 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 Nihon Falcom (TSE:3723), the current Gross Margin % is 94.82% 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 Nihon Falcom (TSE:3723) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Falcom stock appears to be overvalued.
The current stock price of 円2,627.00 is trading 51.8% above its estimated GF Value™ of 円1,730.16.
GuruFocus considers Nihon Falcom to be Significantly Overvalued.
Key valuation signals for TSE:3723:
Gross Margin %: 94.82% (near median its 10-year median of 89.05)
GF Value™: 円1,730.16 vs. price of 円2,627.00 (51.8% above fair value)
Industry Position: 52.6% above the Interactive Media median (#101 of 498)
No single metric tells the full story. See the TSE:3723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Falcom Corp is a Japan-based company engages in the development and sale of game software. It produces music titles/video titles; plans game software; sells game software and related products; and provides various licenses. It offers role-playing game software and Japanese version of overseas game software as well as home-use game software, among others.
68GF Score
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