Change HoldingsTSE:3962 -0.33%73 Gross Margin % is 42.40% as of Mar. 2026, which is 28% below its 10-year median of 59.03. GuruFocus rates TSE:3962 with a GF Score™ of 73/100 and a GF Value™ of 円1,868.99 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,681 Software companies, Change Holdings ranks better than 65.27% 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
Change Holdings had a gross margin of 42.40% 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.
Change Holdings Gross Margin % Related Terms
Change Holdings Gross Margin % Historical Data
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The historical data trend for Change 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:3962 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Change 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.
Change Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Change Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Change 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.
Change Holdings (TSE:3962) has a Gross Margin % of 42.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Change Holdings and its competitors. This is 28% below median its historical median of 59.03. Over the past decade, Change Holdings' Gross Margin % has ranged from 38.90 to 75.42. According to the industry distribution chart, Change Holdings ranks #931 out of 2681 companies in the Software industry, placing it in the top 34.7%.
Is Change Holdings' Gross Margin % too high?
Change Holdings' current Gross Margin % of 42.40% is 28% below median its 10-year median of 59.03. Over the past 10 years, this metric has ranged from a low of 38.90 to a high of 75.42. The Software industry median Gross Margin % is 40.41. Change Holdings' value of 42.40% is 4.9% above this industry median. Based on the distribution chart, Change Holdings ranks #931 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Change Holdings has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Change Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Change Holdings ranks #931 out of 2681 companies for Gross Margin %. This puts Change Holdings in the upper half of its industry. The industry median Gross Margin % is 40.41. Change Holdings' value of 42.40% is 4.9% above this benchmark. Historically, Change Holdings' own Gross Margin % has ranged from 38.90 to 75.42 over the past decade. While the company's 10-year median is 59.03 vs. the industry median of 40.41, Change 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 40.41, 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. Change Holdings's current Gross Margin % of 42.40% is 4.9% 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 Change Holdings 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. Change Holdings's current Gross Margin % is 42.40%, which is 28% below median its own 10-year median of 59.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Change Holdings stock overvalued right now?
Based on GuruFocus' analysis, Change Holdings (TSE:3962) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,868.99, compared to a current price of 円914.00 — trading 51.1% below its estimated fair value. The current Gross Margin % is 42.40%, which is 28% below median its 10-year median of 59.03 and 4.9% above the Software industry median of 40.41. Change Holdings' overall GF Score™ is 73/100 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 Change Holdings (TSE:3962), the current Gross Margin % is 42.40% 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 Change Holdings (TSE:3962) Overvalued in 2026?
Based on GuruFocus' analysis, Change Holdings stock appears to be undervalued.
The current stock price of 円914.00 is trading 51.1% below its estimated GF Value™ of 円1,868.99.
GuruFocus considers Change Holdings to be Significantly Undervalued.
Key valuation signals for TSE:3962:
Gross Margin %: 42.40% (28% below median its 10-year median of 59.03)
GF Value™: 円1,868.99 vs. price of 円914.00 (51.1% below fair value)
Industry Position: 4.9% above the Software median (#931 of 2681)
No single metric tells the full story. See the TSE:3962 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Change Holdings Inc provides mobility, IoT (Internet of Things) data, security and IT human resources training services. It segments are: Public Tech and NEW-IT Transformation Business. The Public Tech segment covers local government support projects that aims to realize high value-added resident services by utilizing ICT technology to promote the improvement of local government business productivity. The NEW-IT Transformation Business segment promotes digital transformation through various algorithms such as AI, voice Internet, mobility, IoT, cloud, security, services utilizing basic technology, and training for digital human resources. It also provides digital transformation solutions by combining libraries based on customer needs to realize customer digital transformation.
73GF Score
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