Segue Group CoTSE:3968 +2.04%83 Gross Margin % is 22.38% as of Dec. 2025, which is 9% below its 10-year median of 24.64. GuruFocus rates TSE:3968 with a GF Score™ of 83/100 and a GF Value™ of 円800.03 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,685 Software companies, Segue Group Co ranks worse than 73.71% on this metric.
Segue Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Segue Group Co's Gross Margin % or its related term are showing as below:
TSE:3968'
s Gross Margin % Range Over the Past 10 Years
Min: 22.83 Med: 24.64 Max: 28.13
Current: 23.65
During the past 12 years, the highestGross Margin % of Segue Group Co was 28.13%. The lowest was 22.83%. And the median was 24.64%.
TSE:3968's Gross Margin % is ranked worse than 73.71% of 2685
companies
in the Software industry
Industry Median: 40.49
vs TSE:3968: 23.65
Segue Group Co had a gross margin of 22.38% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Segue Group Co was -3.10% per year.
Segue Group Co (TSE:3968) 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
Segue Group Co had a gross margin of 22.38% for the quarter that ended in Dec. 2025 => 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.
Segue Group Co Gross Margin % Related Terms
Segue Group Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Segue Group 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:3968 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Segue Group 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.
Segue Group Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Segue Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Segue Group 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.
Segue Group Co (TSE:3968) has a Gross Margin % of 22.38% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Segue Group Co and its competitors. This is near median its historical median of 24.64. Over the past decade, Segue Group Co's Gross Margin % has ranged from 22.83 to 28.13. According to the industry distribution chart, Segue Group Co ranks #1979 out of 2685 companies in the Software industry, placing it in the top 73.7%.
Is Segue Group Co's Gross Margin % too high?
Segue Group Co's current Gross Margin % of 22.38% is near median its 10-year median of 24.64. Over the past 10 years, this metric has ranged from a low of 22.83 to a high of 28.13. The Software industry median Gross Margin % is 40.49. Segue Group Co's value of 22.38% is 44.7% below this industry median. Based on the distribution chart, Segue Group Co ranks #1979 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, Segue Group Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Segue Group Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Segue Group Co ranks #1979 out of 2685 companies for Gross Margin %. This places Segue Group Co in the lower half of its industry. The industry median Gross Margin % is 40.49. Segue Group Co's value of 22.38% is 44.7% below this benchmark. Historically, Segue Group Co's own Gross Margin % has ranged from 22.83 to 28.13 over the past decade. While the company's 10-year median is 24.64 vs. the industry median of 40.49, Segue Group 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 40.49, 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. Segue Group Co's current Gross Margin % of 22.38% is 44.7% 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 Segue Group Co 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. Segue Group Co's current Gross Margin % is 22.38%, which is near median its own 10-year median of 24.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Segue Group Co stock overvalued right now?
Based on GuruFocus' analysis, Segue Group Co (TSE:3968) is currently considered Modestly Undervalued. The stock's GF Value™ is 円800.03, compared to a current price of 円599.00 — trading 25.1% below its estimated fair value. The current Gross Margin % is 22.38%, which is near median its 10-year median of 24.64 and 44.7% below the Software industry median of 40.49. Segue Group Co's overall GF Score™ is 83/100 with 4 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 Segue Group Co (TSE:3968), the current Gross Margin % is 22.38% 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 Segue Group Co (TSE:3968) Overvalued in 2026?
Based on GuruFocus' analysis, Segue Group Co stock appears to be undervalued.
The current stock price of 円599.00 is trading 25.1% below its estimated GF Value™ of 円800.03.
GuruFocus considers Segue Group Co to be Modestly Undervalued.
Key valuation signals for TSE:3968:
Gross Margin %: 22.38% (near median its 10-year median of 24.64)
GF Value™: 円800.03 vs. price of 円599.00 (25.1% below fair value)
Industry Position: 44.7% below the Software median (#1979 of 2685)
No single metric tells the full story. See the TSE:3968 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Segue Group Co Ltd provides information technology services. The company offers networking, security, operations, cloud, and maintenance solutions. It provides various services, including system integration, VoIP system implementation, construction, human resources, help desk support, monitoring, and maintenance support.
83GF Score
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