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Digital Information Technologies (TSE:3916) 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
Digital Information Technologies had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable 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.
Digital Information Technologies Gross Margin % Related Terms
Digital Information Technologies Gross Margin % Historical Data
* 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.
Digital Information Technologies Gross Margin % Chart
TSE:3916 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Digital Information Technologies'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.
Digital Information Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Digital Information Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Information Technologies'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.
Digital Information Technologies (TSE:3916) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Information Technologies and its competitors. Over the past decade, Digital Information Technologies' Gross Margin % has ranged from 23.14 to 25.44. According to the industry distribution chart, Digital Information Technologies ranks #1938 out of 2685 companies in the Software industry, placing it in the top 72.2%.
Is Digital Information Technologies' Gross Margin % too high?
Digital Information Technologies' current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 23.14 to a high of 25.44. Based on the distribution chart, Digital Information Technologies ranks #1938 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, Digital Information Technologies has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Information Technologies' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Digital Information Technologies ranks #1938 out of 2685 companies for Gross Margin %. This places Digital Information Technologies in the lower half of its industry. The industry median Gross Margin % is 40.49. Historically, Digital Information Technologies' own Gross Margin % has ranged from 23.14 to 25.44 over the past decade. 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 40.49, based on 2,685 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. 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 Digital Information Technologies and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Information Technologies's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Information Technologies stock overvalued right now?
Based on GuruFocus' analysis, Digital Information Technologies (TSE:3916) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,301.38, compared to a current price of 円974.00 — trading 25.2% below its estimated fair value. The current Gross Margin % is 0.00%. Digital Information Technologies' overall GF Score™ is 89/100 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 Digital Information Technologies (TSE:3916), the current Gross Margin % is 0.00% as of Dec. 2025. 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 Digital Information Technologies (TSE:3916) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Information Technologies stock appears to be undervalued.
The current stock price of 円974.00 is trading 25.2% below its estimated GF Value™ of 円1,301.38.
GuruFocus considers Digital Information Technologies to be Modestly Undervalued.
Key valuation signals for TSE:3916:
Gross Margin %: 0.00%
GF Value™: 円1,301.38 vs. price of 円974.00 (25.2% below fair value)
No single metric tells the full story. See the TSE:3916 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Information Technologies Business Description
Digital Information Technologies Corp is a Japan-based information service company mainly engaged in the operation of software development business and computer sales business. The company operates through two main business segments. The Software Development segment focuses on business solutions, including the development of business systems and operational support services; embedded solutions, such as embedded system development and built-in verification; and product offerings that include cybersecurity and business automation tools. The System Sales segment handles the sale of the Rakuichi core management support system, targeting small and medium-sized enterprises.
89GF Score
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