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Eltes CoTSE:3967 -0.17%64 Gross Margin % is 36.27% as of Feb. 2026, which is 28% below its 10-year median of 50.41. GuruFocus rates TSE:3967 with a GF Score™ of 64/100 and a GF Value™ of 円973.97 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,683 Software companies, Eltes Co ranks worse than 56.17% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Eltes Co's Gross Profit for the
six
months ended in Feb. 2026 was 円1,755 Mil. Eltes Co's Revenue for the
six
months ended in Feb. 2026 was 円4,839 Mil. Therefore, Eltes Co's Gross Margin % for the quarter that ended in Feb. 2026 was 36.27%.
Warning Sign:
Eltes Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.9%.
The historical rank and industry rank for Eltes Co's Gross Margin % or its related term are showing as below:
TSE:3967'
s Gross Margin % Range Over the Past 10 Years
Min: 35.56 Med: 50.41 Max: 63.15
Current: 35.56
During the past 12 years, the highestGross Margin % of Eltes Co was 63.15%. The lowest was 35.56%. And the median was 50.41%.
TSE:3967's Gross Margin % is ranked worse than 56.17% of 2683
companies
in the Software industry
Industry Median: 40.47
vs TSE:3967: 35.56
Eltes Co had a gross margin of 36.27% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Eltes Co was -6.90% per year.
Eltes Co (TSE:3967) 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
Eltes Co had a gross margin of 36.27% for the quarter that ended in Feb. 2026 => Competition eroding margins
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.
Eltes Co Gross Margin % Related Terms
Eltes Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Eltes 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:3967 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Eltes 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.
Eltes Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Eltes Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Eltes 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.
Eltes Co (TSE:3967) has a Gross Margin % of 36.27% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Eltes Co and its competitors. This is 28% below median its historical median of 50.41. Over the past decade, Eltes Co's Gross Margin % has ranged from 35.56 to 63.15. According to the industry distribution chart, Eltes Co ranks #1507 out of 2683 companies in the Software industry, placing it in the top 56.2%.
Is Eltes Co's Gross Margin % too high?
Eltes Co's current Gross Margin % of 36.27% is 28% below median its 10-year median of 50.41. Over the past 10 years, this metric has ranged from a low of 35.56 to a high of 63.15. The Software industry median Gross Margin % is 40.47. Eltes Co's value of 36.27% is 10.4% below this industry median. Based on the distribution chart, Eltes Co ranks #1507 out of 2683 companies in the Software industry, which is below the industry midpoint. Overall, Eltes Co has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Eltes Co's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Eltes Co ranks #1507 out of 2683 companies for Gross Margin %. This places Eltes Co in the lower half of its industry. The industry median Gross Margin % is 40.47. Eltes Co's value of 36.27% is 10.4% below this benchmark. Historically, Eltes Co's own Gross Margin % has ranged from 35.56 to 63.15 over the past decade. While the company's 10-year median is 50.41 vs. the industry median of 40.47, Eltes Co has consistently been below 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 40.47, based on 2,683 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. Eltes Co's current Gross Margin % of 36.27% is 10.4% below 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 Eltes Co and its competitors. For the Software industry, the median Gross Margin % is 40.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eltes Co's current Gross Margin % is 36.27%, which is 28% below median its own 10-year median of 50.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eltes Co stock overvalued right now?
Based on GuruFocus' analysis, Eltes Co (TSE:3967) is currently considered Possible Value Trap. The stock's GF Value™ is 円973.97, compared to a current price of 円580.00 — trading 40.4% below its estimated fair value. The current Gross Margin % is 36.27%, which is 28% below median its 10-year median of 50.41 and 10.4% below the Software industry median of 40.47. Eltes Co's overall GF Score™ is 64/100 with 6 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 Eltes Co (TSE:3967), the current Gross Margin % is 36.27% 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 Eltes Co (TSE:3967) Overvalued in 2026?
Based on GuruFocus' analysis, Eltes Co stock appears to be undervalued.
The current stock price of 円580.00 is trading 40.4% below its estimated GF Value™ of 円973.97.
GuruFocus considers Eltes Co to be Possible Value Trap.
Key valuation signals for TSE:3967:
Gross Margin %: 36.27% (28% below median its 10-year median of 50.41)
GF Value™: 円973.97 vs. price of 円580.00 (40.4% below fair value)
Industry Position: 10.4% below the Software median (#1507 of 2683)
No single metric tells the full story. See the TSE:3967 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eltes Co Ltd provides consultation services based on digital risk technology for database risk and other large storage protection in Japan. It also offers internal fraud detection services that enable the prevention of information security breaches caused by internal factors; and a service that includes detection and diagnosis of security breaches caused by external factors.
64GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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