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Brains TechnologyTSE:4075 +1.57%85 Gross Margin % is 66.23% as of Jan. 2026, which is 6% below its 10-year median of 70.50. GuruFocus rates TSE:4075 with a GF Score™ of 85/100 and a GF Value™ of 円1,133.88 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,687 Software companies, Brains Technology ranks better than 72.87% on this metric.
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
Brains Technology had a gross margin of 66.23% for the quarter that ended in Jan. 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.
Brains Technology Gross Margin % Related Terms
Brains Technology Gross Margin % Historical Data
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The historical data trend for Brains Technology'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:4075 vs QH, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Brains Technology'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.
Brains Technology Gross Margin % vs Software Industry
For the Software industry and Technology sector, Brains Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Brains Technology'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.
Brains Technology (TSE:4075) has a Gross Margin % of 66.23% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Brains Technology and its competitors. This is near median its historical median of 70.50. Over the past decade, Brains Technology's Gross Margin % has ranged from 56.32 to 79.88. According to the industry distribution chart, Brains Technology ranks #729 out of 2687 companies in the Software industry, placing it in the top 27.1%.
Is Brains Technology's Gross Margin % too high?
Brains Technology's current Gross Margin % of 66.23% is near median its 10-year median of 70.50. Over the past 10 years, this metric has ranged from a low of 56.32 to a high of 79.88. The Software industry median Gross Margin % is 40.62. Brains Technology's value of 66.23% is 63% above this industry median. Based on the distribution chart, Brains Technology ranks #729 out of 2687 companies in the Software industry, which is above the industry midpoint. Overall, Brains Technology has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Brains Technology's Gross Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Brains Technology ranks #729 out of 2687 companies for Gross Margin %. This puts Brains Technology in the upper half of its industry. The industry median Gross Margin % is 40.62. Brains Technology's value of 66.23% is 63% above this benchmark. Historically, Brains Technology's own Gross Margin % has ranged from 56.32 to 79.88 over the past decade. While the company's 10-year median is 70.50 vs. the industry median of 40.62, Brains Technology 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 40.62, based on 2,687 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. Brains Technology's current Gross Margin % of 66.23% is 63% 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 Brains Technology and its competitors. For the Software industry, the median Gross Margin % is 40.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brains Technology's current Gross Margin % is 66.23%, which is near median its own 10-year median of 70.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brains Technology stock overvalued right now?
Based on GuruFocus' analysis, Brains Technology (TSE:4075) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,133.88, compared to a current price of 円906.00 — trading 20.1% below its estimated fair value. The current Gross Margin % is 66.23%, which is near median its 10-year median of 70.50 and 63% above the Software industry median of 40.62. Brains Technology's overall GF Score™ is 85/100 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 Brains Technology (TSE:4075), the current Gross Margin % is 66.23% as of Jan. 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 Brains Technology (TSE:4075) Overvalued in 2026?
Based on GuruFocus' analysis, Brains Technology stock appears to be undervalued.
The current stock price of 円906.00 is trading 20.1% below its estimated GF Value™ of 円1,133.88.
GuruFocus considers Brains Technology to be Modestly Undervalued.
Key valuation signals for TSE:4075:
Gross Margin %: 66.23% (near median its 10-year median of 70.50)
GF Value™: 円1,133.88 vs. price of 円906.00 (20.1% below fair value)
Industry Position: 63% above the Software median (#729 of 2687)
No single metric tells the full story. See the TSE:4075 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brains Technology Inc operates an enterprise AI software business that implements AI to enable companies to accelerate their operational and business transformation (DX) through digital technology. It provides two pieces of enterprise AI software: Impulse, an anomaly detection solution that aims to improve the sophistication and labor-saving of operations, and Neuron Enterprise Search, an in-house search engine that helps promote the use of data within a company. The firm's software products are used in industries like manufacturing, information and communications, and construction, which account for the majority of its sales. It operates in a single segment, the enterprise AI software business.
85GF Score
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