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Tenda CoTSE:4198 +0.41%78 Gross Margin % is 38.32% as of Feb. 2026, which is 3% below its 10-year median of 39.66. GuruFocus rates TSE:4198 with a GF Score™ of 78/100 and a GF Value™ of 円895.12 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,685 Software companies, Tenda Co ranks worse than 54.3% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Tenda Co's Gross Profit for the
three
months ended in Feb. 2026 was 円513 Mil. Tenda Co's Revenue for the
three
months ended in Feb. 2026 was 円1,338 Mil. Therefore, Tenda Co's Gross Margin % for the quarter that ended in Feb. 2026 was 38.32%.
Warning Sign:
Tenda Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Tenda Co's Gross Margin % or its related term are showing as below:
TSE:4198'
s Gross Margin % Range Over the Past 10 Years
Min: 36.86 Med: 39.66 Max: 42.7
Current: 36.86
During the past 8 years, the highestGross Margin % of Tenda Co was 42.70%. The lowest was 36.86%. And the median was 39.66%.
TSE:4198's Gross Margin % is ranked worse than 54.3% of 2685
companies
in the Software industry
Industry Median: 40.49
vs TSE:4198: 36.86
Tenda Co had a gross margin of 38.32% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tenda Co was -1.50% per year.
Tenda Co (TSE:4198) 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
Tenda Co had a gross margin of 38.32% for the quarter that ended in Feb. 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.
Tenda Co Gross Margin % Related Terms
Tenda Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tenda 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:4198 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Tenda 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.
Tenda Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Tenda Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tenda 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.
Tenda Co (TSE:4198) has a Gross Margin % of 38.32% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tenda Co and its competitors. This is near median its historical median of 39.66. Over the past decade, Tenda Co's Gross Margin % has ranged from 36.86 to 42.70. According to the industry distribution chart, Tenda Co ranks #1458 out of 2685 companies in the Software industry, placing it in the top 54.3%.
Is Tenda Co's Gross Margin % too high?
Tenda Co's current Gross Margin % of 38.32% is near median its 10-year median of 39.66. Over the past 10 years, this metric has ranged from a low of 36.86 to a high of 42.70. The Software industry median Gross Margin % is 40.49. Tenda Co's value of 38.32% is 5.4% below this industry median. Based on the distribution chart, Tenda Co ranks #1458 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, Tenda Co has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tenda Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Tenda Co ranks #1458 out of 2685 companies for Gross Margin %. This places Tenda Co in the lower half of its industry. The industry median Gross Margin % is 40.49. Tenda Co's value of 38.32% is 5.4% below this benchmark. Historically, Tenda Co's own Gross Margin % has ranged from 36.86 to 42.70 over the past decade. While the company's 10-year median is 39.66 vs. the industry median of 40.49, Tenda 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 40.49, 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. Tenda Co's current Gross Margin % of 38.32% is 5.4% 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 Tenda Co 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. Tenda Co's current Gross Margin % is 38.32%, which is near median its own 10-year median of 39.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tenda Co stock overvalued right now?
Based on GuruFocus' analysis, Tenda Co (TSE:4198) is currently considered Significantly Undervalued. The stock's GF Value™ is 円895.12, compared to a current price of 円494.00 — trading 44.8% below its estimated fair value. The current Gross Margin % is 38.32%, which is near median its 10-year median of 39.66 and 5.4% below the Software industry median of 40.49. Tenda Co's overall GF Score™ is 78/100 with 4 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 Tenda Co (TSE:4198), the current Gross Margin % is 38.32% as of Feb. 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 Tenda Co (TSE:4198) Overvalued in 2026?
Based on GuruFocus' analysis, Tenda Co stock appears to be undervalued.
The current stock price of 円494.00 is trading 44.8% below its estimated GF Value™ of 円895.12.
GuruFocus considers Tenda Co to be Significantly Undervalued.
Key valuation signals for TSE:4198:
Gross Margin %: 38.32% (near median its 10-year median of 39.66)
GF Value™: 円895.12 vs. price of 円494.00 (44.8% below fair value)
Industry Position: 5.4% below the Software median (#1458 of 2685)
No single metric tells the full story. See the TSE:4198 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tenda Co Ltd is engaged in the development, maintenance, and operation of web systems and related websites, applications, through contract work, as well as the provision of business products, and the planning, development, operation, and maintenance of game content.
78GF Score
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