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Trade Works CoTSE:3997 -0.26%75 Gross Margin % is 22.20% as of Jun. 2026, which is 14% below its 10-year median of 25.69. GuruFocus rates TSE:3997 with a GF Score™ of 75/100 and a GF Value™ of 円138.09 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,681 Software companies, Trade Works Co ranks worse than 70.57% on this metric.
Trade Works Co (TSE:3997) 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
Trade Works Co had a gross margin of 22.20% for the quarter that ended in Jun. 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.
Trade Works Co Gross Margin % Related Terms
Trade Works Co Gross Margin % Historical Data
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The historical data trend for Trade Works 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:3997 vs IBM, ACN, CTSH: Gross Margin % Comparison
For the Information Technology Services subindustry, Trade Works 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.
Trade Works Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Trade Works Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trade Works 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.
Trade Works Co (TSE:3997) has a Gross Margin % of 22.20% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Trade Works Co and its competitors. This is 14% below median its historical median of 25.69. Over the past decade, Trade Works Co's Gross Margin % has ranged from 17.12 to 41.33. According to the industry distribution chart, Trade Works Co ranks #1892 out of 2681 companies in the Software industry, placing it in the top 70.6%.
Is Trade Works Co's Gross Margin % too high?
Trade Works Co's current Gross Margin % of 22.20% is 14% below median its 10-year median of 25.69. Over the past 10 years, this metric has ranged from a low of 17.12 to a high of 41.33. The Software industry median Gross Margin % is 40.39. Trade Works Co's value of 22.20% is 45% below this industry median. Based on the distribution chart, Trade Works Co ranks #1892 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, Trade Works Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Trade Works Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Trade Works Co ranks #1892 out of 2681 companies for Gross Margin %. This places Trade Works Co in the lower half of its industry. The industry median Gross Margin % is 40.39. Trade Works Co's value of 22.20% is 45% below this benchmark. Historically, Trade Works Co's own Gross Margin % has ranged from 17.12 to 41.33 over the past decade. While the company's 10-year median is 25.69 vs. the industry median of 40.39, Trade Works 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 40.39, 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. Trade Works Co's current Gross Margin % of 22.20% is 45% 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 Trade Works Co and its competitors. For the Software industry, the median Gross Margin % is 40.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trade Works Co's current Gross Margin % is 22.20%, which is 14% below median its own 10-year median of 25.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trade Works Co stock overvalued right now?
Based on GuruFocus' analysis, Trade Works Co (TSE:3997) is currently considered Significantly Overvalued. The stock's GF Value™ is 円138.09, compared to a current price of 円390.00 — trading 182.4% above its estimated fair value. The current Gross Margin % is 22.20%, which is 14% below median its 10-year median of 25.69 and 45% below the Software industry median of 40.39. Trade Works Co's overall GF Score™ is 75/100 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 Trade Works Co (TSE:3997), the current Gross Margin % is 22.20% as of Jun. 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 Trade Works Co (TSE:3997) Overvalued in 2026?
Based on GuruFocus' analysis, Trade Works Co stock appears to be overvalued.
The current stock price of 円390.00 is trading 182.4% above its estimated GF Value™ of 円138.09.
GuruFocus considers Trade Works Co to be Significantly Overvalued.
Key valuation signals for TSE:3997:
Gross Margin %: 22.20% (14% below median its 10-year median of 25.69)
GF Value™: 円138.09 vs. price of 円390.00 (182.4% above fair value)
Industry Position: 45% below the Software median (#1892 of 2681)
No single metric tells the full story. See the TSE:3997 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trade Works Co Ltd is engaged in providing information technology solutions for customers in the securities, foreign exchange, and commodity markets. It offers services such as software development, system operation; data center service specialized in the financial capital market. Its product portfolio includes online trade TradeAgent, Deering Athena, exchange trading terminal Mars, exchange trading terminal Mars web, unfair trade monitoring MTS, security diagnostic services.
75GF Score
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