The historical rank and industry rank for User Local's Gross Margin % or its related term are showing as below:
TSE:3984'
s Gross Margin % Range Over the Past 10 Years
Min: 88.83 Med: 90.72 Max: 92.8
Current: 89.26
During the past 11 years, the highestGross Margin % of User Local was 92.80%. The lowest was 88.83%. And the median was 90.72%.
TSE:3984's Gross Margin % is ranked better than 94.93% of 2685
companies
in the Software industry
Industry Median: 40.49
vs TSE:3984: 89.26
User Local had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for User Local was -0.10% per year.
User Local (TSE:3984) 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
User Local had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable 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.
User Local Gross Margin % Related Terms
User Local Gross Margin % Historical Data
* Premium members only.
The historical data trend for User Local'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:3984 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, User Local'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.
User Local Gross Margin % vs Software Industry
For the Software industry and Technology sector, User Local's Gross Margin % distribution charts can be found below:
* The bar in red indicates where User Local'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.
User Local (TSE:3984) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on User Local and its competitors. Over the past decade, User Local's Gross Margin % has ranged from 88.83 to 92.80. According to the industry distribution chart, User Local ranks #136 out of 2685 companies in the Software industry, placing it in the top 5.1%.
Is User Local's Gross Margin % too high?
User Local's current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 88.83 to a high of 92.80. Based on the distribution chart, User Local ranks #136 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, User Local has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does User Local's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, User Local ranks #136 out of 2685 companies for Gross Margin %. This places User Local in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.49. Historically, User Local's own Gross Margin % has ranged from 88.83 to 92.80 over the past decade. 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. 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 User Local 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. User Local's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is User Local stock overvalued right now?
Based on GuruFocus' analysis, User Local (TSE:3984) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,110.96, compared to a current price of 円1,784.00 — trading 15.5% below its estimated fair value. The current Gross Margin % is 0.00%. User Local's overall GF Score™ is 97/100 with 1 warning sign 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 User Local (TSE:3984), the current Gross Margin % is 0.00% 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 User Local (TSE:3984) Overvalued in 2026?
Based on GuruFocus' analysis, User Local stock appears to be undervalued.
The current stock price of 円1,784.00 is trading 15.5% below its estimated GF Value™ of 円2,110.96.
GuruFocus considers User Local to be Modestly Undervalued.
Key valuation signals for TSE:3984:
Gross Margin %: 0.00%
GF Value™: 円2,110.96 vs. price of 円1,784.00 (15.5% below fair value)
No single metric tells the full story. See the TSE:3984 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
User Local Inc is engaged in the research and development of big data analysis system, web marketing support tool, offering media analysis tool, and managing artificial intelligence chat bot.
97GF Score
Get the complete analysis for TSE:3984
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:3984 has been successfully added to your 
