Drecom CoTSE:3793 +1.50%72 Gross Margin % is 32.44% as of Mar. 2026, which is 0% above its 10-year median of 32.35. GuruFocus rates TSE:3793 with a GF Score™ of 72/100 and a GF Value™ of 円1,084.61 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 497 Interactive Media companies, Drecom Co ranks worse than 81.89% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Drecom Co's Gross Profit for the
three
months ended in Mar. 2026 was 円1,378 Mil. Drecom Co's Revenue for the
three
months ended in Mar. 2026 was 円4,246 Mil. Therefore, Drecom Co's Gross Margin % for the quarter that ended in Mar. 2026 was 32.44%.
Warning Sign:
Drecom Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4%.
The historical rank and industry rank for Drecom Co's Gross Margin % or its related term are showing as below:
TSE:3793'
s Gross Margin % Range Over the Past 10 Years
Min: 13.38 Med: 32.35 Max: 42.2
Current: 30.94
During the past 13 years, the highestGross Margin % of Drecom Co was 42.20%. The lowest was 13.38%. And the median was 32.35%.
TSE:3793's Gross Margin % is ranked worse than 81.89% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs TSE:3793: 30.94
Drecom Co had a gross margin of 32.44% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Drecom Co was -4.00% per year.
Drecom Co (TSE:3793) 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
Drecom Co had a gross margin of 32.44% 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.
Drecom Co Gross Margin % Related Terms
Drecom Co Gross Margin % Historical Data
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The historical data trend for Drecom Co'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:3793 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Drecom Co'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.
Drecom Co Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Drecom Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Drecom Co'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.
Drecom Co (TSE:3793) has a Gross Margin % of 32.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Drecom Co and its competitors. This is near median its historical median of 32.35. Over the past decade, Drecom Co's Gross Margin % has ranged from 13.38 to 42.20. According to the industry distribution chart, Drecom Co ranks #407 out of 497 companies in the Interactive Media industry, placing it in the top 81.9%.
Is Drecom Co's Gross Margin % too high?
Drecom Co's current Gross Margin % of 32.44% is near median its 10-year median of 32.35. Over the past 10 years, this metric has ranged from a low of 13.38 to a high of 42.20. The Interactive Media industry median Gross Margin % is 62.58. Drecom Co's value of 32.44% is 48.2% below this industry median. Based on the distribution chart, Drecom Co ranks #407 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Drecom Co has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Drecom Co's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Drecom Co ranks #407 out of 497 companies for Gross Margin %. This places Drecom Co in the lower half of its industry. The industry median Gross Margin % is 62.58. Drecom Co's value of 32.44% is 48.2% below this benchmark. Historically, Drecom Co's own Gross Margin % has ranged from 13.38 to 42.20 over the past decade. While the company's 10-year median is 32.35 vs. the industry median of 62.58, Drecom Co 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. Drecom Co's current Gross Margin % of 32.44% is 48.2% 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 Drecom Co 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. Drecom Co's current Gross Margin % is 32.44%, which is near median its own 10-year median of 32.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drecom Co stock overvalued right now?
Based on GuruFocus' analysis, Drecom Co (TSE:3793) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,084.61, compared to a current price of 円407.00 — trading 62.5% below its estimated fair value. The current Gross Margin % is 32.44%, which is near median its 10-year median of 32.35 and 48.2% below the Interactive Media industry median of 62.58. Drecom Co's overall GF Score™ is 72/100 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 Drecom Co (TSE:3793), the current Gross Margin % is 32.44% 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 Drecom Co (TSE:3793) Overvalued in 2026?
Based on GuruFocus' analysis, Drecom Co stock appears to be undervalued.
The current stock price of 円407.00 is trading 62.5% below its estimated GF Value™ of 円1,084.61.
GuruFocus considers Drecom Co to be Significantly Undervalued.
Key valuation signals for TSE:3793:
Gross Margin %: 32.44% (near median its 10-year median of 32.35)
GF Value™: 円1,084.61 vs. price of 円407.00 (62.5% below fair value)
Industry Position: 48.2% below the Interactive Media median (#407 of 497)
No single metric tells the full story. See the TSE:3793 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Drecom Co Ltd is engaged in the entertainment web and marketing solution businesses. The Entertainment Web segment plans and develops entertainment contents whereas Marketing Solution segment develops corporate marketing services through Internet.
72GF 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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