Ubicom HoldingsTSE:3937 90 Gross Margin % is 42.71% as of Mar. 2026, which is 4% above its 10-year median of 41.21. GuruFocus rates TSE:3937 with a GF Score™ of 90/100 and a GF Value™ of 円1,340.31 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,685 Software companies, Ubicom Holdings ranks better than 51.81% on this metric.
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
Ubicom Holdings had a gross margin of 42.71% 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.
Ubicom Holdings Gross Margin % Related Terms
Ubicom Holdings Gross Margin % Historical Data
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The historical data trend for Ubicom Holdings'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:3937 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Ubicom Holdings'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.
Ubicom Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Ubicom Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ubicom Holdings'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.
Ubicom Holdings (TSE:3937) has a Gross Margin % of 42.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ubicom Holdings and its competitors. This is near median its historical median of 41.21. Over the past decade, Ubicom Holdings' Gross Margin % has ranged from 37.84 to 43.76. According to the industry distribution chart, Ubicom Holdings ranks #1294 out of 2685 companies in the Software industry, placing it in the top 48.2%.
Is Ubicom Holdings' Gross Margin % too high?
Ubicom Holdings' current Gross Margin % of 42.71% is near median its 10-year median of 41.21. Over the past 10 years, this metric has ranged from a low of 37.84 to a high of 43.76. The Software industry median Gross Margin % is 40.49. Ubicom Holdings' value of 42.71% is 5.5% above this industry median. Based on the distribution chart, Ubicom Holdings ranks #1294 out of 2685 companies in the Software industry, which is above the industry midpoint. Overall, Ubicom Holdings has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ubicom Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Ubicom Holdings ranks #1294 out of 2685 companies for Gross Margin %. This puts Ubicom Holdings in the upper half of its industry. The industry median Gross Margin % is 40.49. Ubicom Holdings' value of 42.71% is 5.5% above this benchmark. Historically, Ubicom Holdings' own Gross Margin % has ranged from 37.84 to 43.76 over the past decade. While the company's 10-year median is 41.21 vs. the industry median of 40.49, Ubicom Holdings 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 40.49, 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. Ubicom Holdings's current Gross Margin % of 42.71% is 5.5% 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 Ubicom Holdings 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. Ubicom Holdings's current Gross Margin % is 42.71%, which is near median its own 10-year median of 41.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ubicom Holdings stock overvalued right now?
Based on GuruFocus' analysis, Ubicom Holdings (TSE:3937) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,340.31, compared to a current price of 円1,000.00 — trading 25.4% below its estimated fair value. The current Gross Margin % is 42.71%, which is near median its 10-year median of 41.21 and 5.5% above the Software industry median of 40.49. Ubicom Holdings' overall GF Score™ is 90/100 with 3 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 Ubicom Holdings (TSE:3937), the current Gross Margin % is 42.71% 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 Ubicom Holdings (TSE:3937) Overvalued in 2026?
Based on GuruFocus' analysis, Ubicom Holdings stock appears to be undervalued.
The current stock price of 円1,000.00 is trading 25.4% below its estimated GF Value™ of 円1,340.31.
GuruFocus considers Ubicom Holdings to be Modestly Undervalued.
Key valuation signals for TSE:3937:
Gross Margin %: 42.71% (near median its 10-year median of 41.21)
GF Value™: 円1,340.31 vs. price of 円1,000.00 (25.4% below fair value)
Industry Position: 5.5% above the Software median (#1294 of 2685)
No single metric tells the full story. See the TSE:3937 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ubicom Holdings Inc provides information technology services. The Company offers business application system development, embedded software development, quality assurance, system maintenance, and other services. The company operates through Global, Medical, and Enterprise Solutions divisions. The Global division offers software engineering services, including prototyping, design, development, testing, deployment, and maintenance; and automated software testing and mobile technology related services and solutions. The Medical division focuses on providing IT solutions and services to the medical industry. It offers Mighty Checker; Mighty Qube; Mighty SPD; and Mighty Trace. The Enterprise Solutions division offers mission-critical systems for Japanese banking and financial institutions.
90GF Score
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