Daiwa Computer CoTSE:3816 +0.09%86 Gross Margin % is 21.20% as of Jan. 2026, which is 33% below its 10-year median of 31.61. GuruFocus rates TSE:3816 with a GF Score™ of 86/100 and a GF Value™ of 円1,131.32 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,681 Software companies, Daiwa Computer Co ranks worse than 68.82% on this metric.
The historical rank and industry rank for Daiwa Computer Co's Gross Margin % or its related term are showing as below:
TSE:3816'
s Gross Margin % Range Over the Past 10 Years
Min: 26.37 Med: 31.61 Max: 34.46
Current: 26.37
During the past 13 years, the highestGross Margin % of Daiwa Computer Co was 34.46%. The lowest was 26.37%. And the median was 31.61%.
TSE:3816's Gross Margin % is ranked worse than 68.82% of 2681
companies
in the Software industry
Industry Median: 40.41
vs TSE:3816: 26.37
Daiwa Computer Co had a gross margin of 21.20% for the quarter that ended in Jan. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Daiwa Computer Co was 0.10% per year.
Daiwa Computer Co (TSE:3816) 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
Daiwa Computer Co had a gross margin of 21.20% for the quarter that ended in Jan. 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.
Daiwa Computer Co Gross Margin % Related Terms
Daiwa Computer Co Gross Margin % Historical Data
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The historical data trend for Daiwa Computer 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:3816 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Daiwa Computer 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.
Daiwa Computer Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Daiwa Computer Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Daiwa Computer 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.
Daiwa Computer Co (TSE:3816) has a Gross Margin % of 21.20% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Daiwa Computer Co and its competitors. This is 33% below median its historical median of 31.61. Over the past decade, Daiwa Computer Co's Gross Margin % has ranged from 26.37 to 34.46. According to the industry distribution chart, Daiwa Computer Co ranks #1845 out of 2681 companies in the Software industry, placing it in the top 68.8%.
Is Daiwa Computer Co's Gross Margin % too high?
Daiwa Computer Co's current Gross Margin % of 21.20% is 33% below median its 10-year median of 31.61. Over the past 10 years, this metric has ranged from a low of 26.37 to a high of 34.46. The Software industry median Gross Margin % is 40.41. Daiwa Computer Co's value of 21.20% is 47.5% below this industry median. Based on the distribution chart, Daiwa Computer Co ranks #1845 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, Daiwa Computer Co has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Daiwa Computer Co's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Daiwa Computer Co ranks #1845 out of 2681 companies for Gross Margin %. This places Daiwa Computer Co in the lower half of its industry. The industry median Gross Margin % is 40.41. Daiwa Computer Co's value of 21.20% is 47.5% below this benchmark. Historically, Daiwa Computer Co's own Gross Margin % has ranged from 26.37 to 34.46 over the past decade. While the company's 10-year median is 31.61 vs. the industry median of 40.41, Daiwa Computer 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 a Software company?
The median Gross Margin % among Software companies is 40.41, based on 2,681 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. Daiwa Computer Co's current Gross Margin % of 21.20% is 47.5% 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 Daiwa Computer Co and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiwa Computer Co's current Gross Margin % is 21.20%, which is 33% below median its own 10-year median of 31.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Computer Co stock overvalued right now?
Based on GuruFocus' analysis, Daiwa Computer Co (TSE:3816) is currently considered Fairly Valued. The stock's GF Value™ is 円1,131.32, compared to a current price of 円1,121.00 — trading 0.9% below its estimated fair value. The current Gross Margin % is 21.20%, which is 33% below median its 10-year median of 31.61 and 47.5% below the Software industry median of 40.41. Daiwa Computer Co's overall GF Score™ is 86/100 with 1 warning sign 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 Daiwa Computer Co (TSE:3816), the current Gross Margin % is 21.20% as of Jan. 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 Daiwa Computer Co (TSE:3816) Overvalued in 2026?
Based on GuruFocus' analysis, Daiwa Computer Co stock appears to be undervalued.
The current stock price of 円1,121.00 is trading 0.9% below its estimated GF Value™ of 円1,131.32.
GuruFocus considers Daiwa Computer Co to be Fairly Valued.
Key valuation signals for TSE:3816:
Gross Margin %: 21.20% (33% below median its 10-year median of 31.61)
GF Value™: 円1,131.32 vs. price of 円1,121.00 (0.9% below fair value)
Industry Position: 47.5% below the Software median (#1845 of 2681)
No single metric tells the full story. See the TSE:3816 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daiwa Computer Co Ltd is engaged in designing business applications, web-related system, software development, operation support, system consulting, related equipment sales, development and sale of packaged software, consulting, SaaS/ASP service. It also engaged in the production, processing, and sale of agricultural crops. Its segments include: Software development-related business, which covers the construction and operation of information systems; and the Service integration business, which covers SaaS-type software services.
86GF Score
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