PATHTSE:3840 -1.54%53 Gross Margin % is 45.05% as of Mar. 2026, which is 9% below its 10-year median of 49.34. GuruFocus rates TSE:3840 with a GF Score™ of 53/100 and a GF Value™ of 円82.67 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,006 Business Services companies, PATH ranks better than 68.39% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. PATH's Gross Profit for the
six
months ended in Mar. 2026 was 円497 Mil. PATH's Revenue for the
six
months ended in Mar. 2026 was 円1,104 Mil. Therefore, PATH's Gross Margin % for the quarter that ended in Mar. 2026 was 45.05%.
The historical rank and industry rank for PATH's Gross Margin % or its related term are showing as below:
TSE:3840'
s Gross Margin % Range Over the Past 10 Years
Min: 47.42 Med: 49.34 Max: 55.77
Current: 48.82
During the past 13 years, the highestGross Margin % of PATH was 55.77%. The lowest was 47.42%. And the median was 49.34%.
TSE:3840's Gross Margin % is ranked better than 68.39% of 1006
companies
in the Business Services industry
Industry Median: 34.46
vs TSE:3840: 48.82
PATH had a gross margin of 45.05% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PATH was 0.00% per year.
PATH (TSE:3840) 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
PATH had a gross margin of 45.05% 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.
PATH Gross Margin % Related Terms
PATH Gross Margin % Historical Data
* Premium members only.
The historical data trend for PATH'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:3840 vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, PATH'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.
PATH Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, PATH's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PATH'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.
PATH (TSE:3840) has a Gross Margin % of 45.05% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PATH and its competitors. This is near median its historical median of 49.34. Over the past decade, PATH's Gross Margin % has ranged from 47.42 to 55.77. According to the industry distribution chart, PATH ranks #318 out of 1006 companies in the Business Services industry, placing it in the top 31.6%.
Is PATH's Gross Margin % too high?
PATH's current Gross Margin % of 45.05% is near median its 10-year median of 49.34. Over the past 10 years, this metric has ranged from a low of 47.42 to a high of 55.77. The Business Services industry median Gross Margin % is 34.46. PATH's value of 45.05% is 30.7% above this industry median. Based on the distribution chart, PATH ranks #318 out of 1006 companies in the Business Services industry, which is above the industry midpoint. Overall, PATH has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PATH's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, PATH ranks #318 out of 1006 companies for Gross Margin %. This puts PATH in the upper half of its industry. The industry median Gross Margin % is 34.46. PATH's value of 45.05% is 30.7% above this benchmark. Historically, PATH's own Gross Margin % has ranged from 47.42 to 55.77 over the past decade. While the company's 10-year median is 49.34 vs. the industry median of 34.46, PATH 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,006 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. PATH's current Gross Margin % of 45.05% is 30.7% 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 PATH and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PATH's current Gross Margin % is 45.05%, which is near median its own 10-year median of 49.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PATH stock overvalued right now?
Based on GuruFocus' analysis, PATH (TSE:3840) is currently considered Modestly Undervalued. The stock's GF Value™ is 円82.67, compared to a current price of 円64.00 — trading 22.6% below its estimated fair value. The current Gross Margin % is 45.05%, which is near median its 10-year median of 49.34 and 30.7% above the Business Services industry median of 34.46. PATH's overall GF Score™ is 53/100 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 PATH (TSE:3840), the current Gross Margin % is 45.05% 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 PATH (TSE:3840) Overvalued in 2026?
Based on GuruFocus' analysis, PATH stock appears to be undervalued.
The current stock price of 円64.00 is trading 22.6% below its estimated GF Value™ of 円82.67.
GuruFocus considers PATH to be Modestly Undervalued.
Key valuation signals for TSE:3840:
Gross Margin %: 45.05% (near median its 10-year median of 49.34)
GF Value™: 円82.67 vs. price of 円64.00 (22.6% below fair value)
Industry Position: 30.7% above the Business Services median (#318 of 1006)
No single metric tells the full story. See the TSE:3840 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PATH Corp is a business service provider. The company offers consulting services which include planning and proposing new businesses using block chain technology, implementing and introducing systems, and procuring means for new business funds, and mail order related business.
53GF Score
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