Plus Alpha Consulting Co (TSE:4071) 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
Plus Alpha Consulting Co had a gross margin of 71.74% for the quarter that ended in Mar. 2026 => 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.
Plus Alpha Consulting Co Gross Margin % Related Terms
Plus Alpha Consulting Co Gross Margin % Historical Data
* 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:4071 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Plus Alpha Consulting 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.
Plus Alpha Consulting Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Plus Alpha Consulting Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Plus Alpha Consulting 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.
Plus Alpha Consulting Co (TSE:4071) has a Gross Margin % of 71.74% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Plus Alpha Consulting Co and its competitors. This is near median its historical median of 71.85. Over the past decade, Plus Alpha Consulting Co's Gross Margin % has ranged from 71.11 to 73.52. According to the industry distribution chart, Plus Alpha Consulting Co ranks #511 out of 2680 companies in the Software industry, placing it in the top 19.1%.
Is Plus Alpha Consulting Co's Gross Margin % too high?
Plus Alpha Consulting Co's current Gross Margin % of 71.74% is near median its 10-year median of 71.85. Over the past 10 years, this metric has ranged from a low of 71.11 to a high of 73.52. The Software industry median Gross Margin % is 40.45. Plus Alpha Consulting Co's value of 71.74% is 77.4% above this industry median. Based on the distribution chart, Plus Alpha Consulting Co ranks #511 out of 2680 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Plus Alpha Consulting Co has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Plus Alpha Consulting Co's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Plus Alpha Consulting Co ranks #511 out of 2680 companies for Gross Margin %. This places Plus Alpha Consulting Co in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Plus Alpha Consulting Co's value of 71.74% is 77.4% above this benchmark. Historically, Plus Alpha Consulting Co's own Gross Margin % has ranged from 71.11 to 73.52 over the past decade. While the company's 10-year median is 71.85 vs. the industry median of 40.45, Plus Alpha Consulting Co 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 40.45, based on 2,680 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. Plus Alpha Consulting Co's current Gross Margin % of 71.74% is 77.4% 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 Plus Alpha Consulting Co and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Plus Alpha Consulting Co's current Gross Margin % is 71.74%, which is near median its own 10-year median of 71.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Plus Alpha Consulting Co stock overvalued right now?
Based on GuruFocus' analysis, Plus Alpha Consulting Co (TSE:4071) is currently considered Fairly Valued. The stock's GF Value™ is 円2,818.51, compared to a current price of 円2,673.00 — trading 5.2% below its estimated fair value. The current Gross Margin % is 71.74%, which is near median its 10-year median of 71.85 and 77.4% above the Software industry median of 40.45. Plus Alpha Consulting Co's overall GF Score™ is 97/100 with 3 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 Plus Alpha Consulting Co (TSE:4071), the current Gross Margin % is 71.74% as of Mar. 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 Plus Alpha Consulting Co (TSE:4071) Overvalued in 2026?
Based on GuruFocus' analysis, Plus Alpha Consulting Co stock appears to be undervalued.
The current stock price of 円2,673.00 is trading 5.2% below its estimated GF Value™ of 円2,818.51.
GuruFocus considers Plus Alpha Consulting Co to be Fairly Valued.
Key valuation signals for TSE:4071:
Gross Margin %: 71.74% (near median its 10-year median of 71.85)
GF Value™: 円2,818.51 vs. price of 円2,673.00 (5.2% below fair value)
Industry Position: 77.4% above the Software median (#511 of 2680)
No single metric tells the full story. See the TSE:4071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4071 has been successfully added to your 
