The Why How Do CoTSE:3823 +6.67%44 Gross Margin % is 57.55% as of Feb. 2026, which is 55% above its 10-year median of 37.02. GuruFocus rates TSE:3823 with a GF Score™ of 44/100 and a GF Value™ of 円59.15 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,678 Software companies, The Why How Do Co ranks better than 65.98% on this metric.
The historical rank and industry rank for The Why How Do Co's Gross Margin % or its related term are showing as below:
TSE:3823'
s Gross Margin % Range Over the Past 10 Years
Min: 5.94 Med: 37.02 Max: 59.28
Current: 55.23
During the past 13 years, the highestGross Margin % of The Why How Do Co was 59.28%. The lowest was 5.94%. And the median was 37.02%.
TSE:3823's Gross Margin % is ranked better than 65.98% of 2678
companies
in the Software industry
Industry Median: 40.455
vs TSE:3823: 55.23
The Why How Do Co had a gross margin of 57.55% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for The Why How Do Co was 31.30% per year.
The Why How Do Co (TSE:3823) 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
The Why How Do Co had a gross margin of 57.55% for the quarter that ended in Feb. 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.
The Why How Do Co Gross Margin % Related Terms
The Why How Do Co Gross Margin % Historical Data
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The historical data trend for The Why How Do 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:3823 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, The Why How Do 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.
The Why How Do Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, The Why How Do Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Why How Do 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.
The Why How Do Co (TSE:3823) has a Gross Margin % of 57.55% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Why How Do Co and its competitors. This is 55% above median its historical median of 37.02. Over the past decade, The Why How Do Co's Gross Margin % has ranged from 5.94 to 59.28. According to the industry distribution chart, The Why How Do Co ranks #911 out of 2678 companies in the Software industry, placing it in the top 34%.
Is The Why How Do Co's Gross Margin % too high?
The Why How Do Co's current Gross Margin % of 57.55% is 55% above median its 10-year median of 37.02. Over the past 10 years, this metric has ranged from a low of 5.94 to a high of 59.28. The Software industry median Gross Margin % is 40.46. The Why How Do Co's value of 57.55% is 42.3% above this industry median. Based on the distribution chart, The Why How Do Co ranks #911 out of 2678 companies in the Software industry, which is above the industry midpoint. Overall, The Why How Do Co has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The Why How Do Co's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, The Why How Do Co ranks #911 out of 2678 companies for Gross Margin %. This puts The Why How Do Co in the upper half of its industry. The industry median Gross Margin % is 40.46. The Why How Do Co's value of 57.55% is 42.3% above this benchmark. Historically, The Why How Do Co's own Gross Margin % has ranged from 5.94 to 59.28 over the past decade. While the company's 10-year median is 37.02 vs. the industry median of 40.46, The Why How Do Co 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 40.46, based on 2,678 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. The Why How Do Co's current Gross Margin % of 57.55% is 42.3% 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 The Why How Do Co and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Why How Do Co's current Gross Margin % is 57.55%, which is 55% above median its own 10-year median of 37.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Why How Do Co stock overvalued right now?
Based on GuruFocus' analysis, The Why How Do Co (TSE:3823) is currently considered Possible Value Trap. The stock's GF Value™ is 円59.15, compared to a current price of 円32.00 — trading 45.9% below its estimated fair value. The current Gross Margin % is 57.55%, which is 55% above median its 10-year median of 37.02 and 42.3% above the Software industry median of 40.46. The Why How Do Co's overall GF Score™ is 44/100 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 The Why How Do Co (TSE:3823), the current Gross Margin % is 57.55% as of Feb. 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 The Why How Do Co (TSE:3823) Overvalued in 2026?
Based on GuruFocus' analysis, The Why How Do Co stock appears to be undervalued.
The current stock price of 円32.00 is trading 45.9% below its estimated GF Value™ of 円59.15.
GuruFocus considers The Why How Do Co to be Possible Value Trap.
Key valuation signals for TSE:3823:
Gross Margin %: 57.55% (55% above median its 10-year median of 37.02)
GF Value™: 円59.15 vs. price of 円32.00 (45.9% below fair value)
Industry Position: 42.3% above the Software median (#911 of 2678)
No single metric tells the full story. See the TSE:3823 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Why How Do Co Inc formerly Acrodea Inc is a software company. It is mainly engaged in the development of platform services for smartphones and IoT related solutions. In addition, the company provides social game and application related development and services.
44GF Score
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