Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
SHANONTSE:3976 -2.58%51 Gross Margin % is 67.98% as of Oct. 2025, which is 15% above its 10-year median of 59.17. GuruFocus rates TSE:3976 with a GF Score™ of 51/100 and a GF Value™ of 円230.27 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,685 Software companies, SHANON ranks better than 79.55% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SHANON's Gross Profit for the
three
months ended in Oct. 2025 was 円437 Mil. SHANON's Revenue for the
three
months ended in Oct. 2025 was 円643 Mil. Therefore, SHANON's Gross Margin % for the quarter that ended in Oct. 2025 was 67.98%.
The historical rank and industry rank for SHANON's Gross Margin % or its related term are showing as below:
TSE:3976'
s Gross Margin % Range Over the Past 10 Years
Min: 54.79 Med: 59.17 Max: 69.51
Current: 69.51
During the past 12 years, the highestGross Margin % of SHANON was 69.51%. The lowest was 54.79%. And the median was 59.17%.
TSE:3976's Gross Margin % is ranked better than 79.55% of 2685
companies
in the Software industry
Industry Median: 40.49
vs TSE:3976: 69.51
SHANON had a gross margin of 67.98% for the quarter that ended in Oct. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SHANON was 0.70% per year.
SHANON (TSE:3976) 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
SHANON had a gross margin of 67.98% for the quarter that ended in Oct. 2025 => 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.
SHANON Gross Margin % Related Terms
SHANON Gross Margin % Historical Data
* Premium members only.
The historical data trend for SHANON'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:3976 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, SHANON'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.
SHANON Gross Margin % vs Software Industry
For the Software industry and Technology sector, SHANON's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SHANON'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.
SHANON (TSE:3976) has a Gross Margin % of 67.98% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on SHANON and its competitors. This is 15% above median its historical median of 59.17. Over the past decade, SHANON's Gross Margin % has ranged from 54.79 to 69.51. According to the industry distribution chart, SHANON ranks #549 out of 2685 companies in the Software industry, placing it in the top 20.4%.
Is SHANON's Gross Margin % too high?
SHANON's current Gross Margin % of 67.98% is 15% above median its 10-year median of 59.17. Over the past 10 years, this metric has ranged from a low of 54.79 to a high of 69.51. The Software industry median Gross Margin % is 40.49. SHANON's value of 67.98% is 67.9% above this industry median. Based on the distribution chart, SHANON ranks #549 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SHANON has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SHANON's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, SHANON ranks #549 out of 2685 companies for Gross Margin %. This places SHANON in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.49. SHANON's value of 67.98% is 67.9% above this benchmark. Historically, SHANON's own Gross Margin % has ranged from 54.79 to 69.51 over the past decade. While the company's 10-year median is 59.17 vs. the industry median of 40.49, SHANON 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. SHANON's current Gross Margin % of 67.98% is 67.9% 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 SHANON 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. SHANON's current Gross Margin % is 67.98%, which is 15% above median its own 10-year median of 59.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SHANON stock overvalued right now?
Based on GuruFocus' analysis, SHANON (TSE:3976) is currently considered Significantly Overvalued. The stock's GF Value™ is 円230.27, compared to a current price of 円567.00 — trading 146.2% above its estimated fair value. The current Gross Margin % is 67.98%, which is 15% above median its 10-year median of 59.17 and 67.9% above the Software industry median of 40.49. SHANON's overall GF Score™ is 51/100 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 SHANON (TSE:3976), the current Gross Margin % is 67.98% as of Oct. 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 SHANON (TSE:3976) Overvalued in 2026?
Based on GuruFocus' analysis, SHANON stock appears to be overvalued.
The current stock price of 円567.00 is trading 146.2% above its estimated GF Value™ of 円230.27.
GuruFocus considers SHANON to be Significantly Overvalued.
Key valuation signals for TSE:3976:
Gross Margin %: 67.98% (15% above median its 10-year median of 59.17)
GF Value™: 円230.27 vs. price of 円567.00 (146.2% above fair value)
Industry Position: 67.9% above the Software median (#549 of 2685)
No single metric tells the full story. See the TSE:3976 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SHANON Inc provides marketing platform and cloud application. It is engaged in the planning, development, and sale of cloud marketing solutions. It is also engaged in the provision of consulting and outsourcing services related to marketing.
51GF Score
Get the complete analysis for TSE:3976
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:3976 has been successfully added to your 
