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RayTSE:4317 +1.65%79 Gross Margin % is 35.70% as of Feb. 2026, which is 9% above its 10-year median of 32.69. GuruFocus rates TSE:4317 with a GF Score™ of 79/100 and a GF Value™ of 円565.59 (Modestly Undervalued). Among 944 Media - Diversified companies, Ray ranks worse than 53.71% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Ray's Gross Profit for the
six
months ended in Feb. 2026 was 円2,704 Mil. Ray's Revenue for the
six
months ended in Feb. 2026 was 円7,574 Mil. Therefore, Ray's Gross Margin % for the quarter that ended in Feb. 2026 was 35.70%.
The historical rank and industry rank for Ray's Gross Margin % or its related term are showing as below:
TSE:4317'
s Gross Margin % Range Over the Past 10 Years
Min: 22.25 Med: 32.69 Max: 36.83
Current: 36.83
During the past 13 years, the highestGross Margin % of Ray was 36.83%. The lowest was 22.25%. And the median was 32.69%.
TSE:4317's Gross Margin % is ranked worse than 53.71% of 944
companies
in the Media - Diversified industry
Industry Median: 38.99
vs TSE:4317: 36.83
Ray had a gross margin of 35.70% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ray was 7.80% per year.
Ray (TSE:4317) 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
Ray had a gross margin of 35.70% 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.
Ray Gross Margin % Related Terms
Ray Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ray'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:4317 vs NFLX, DIS, WBD: Gross Margin % Comparison
For the Entertainment subindustry, Ray'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.
Ray Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Ray's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ray'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.
Ray (TSE:4317) has a Gross Margin % of 35.70% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ray and its competitors. This is near median its historical median of 32.69. Over the past decade, Ray's Gross Margin % has ranged from 22.25 to 36.83. According to the industry distribution chart, Ray ranks #507 out of 944 companies in the Media - Diversified industry, placing it in the top 53.7%.
Is Ray's Gross Margin % too high?
Ray's current Gross Margin % of 35.70% is near median its 10-year median of 32.69. Over the past 10 years, this metric has ranged from a low of 22.25 to a high of 36.83. The Media - Diversified industry median Gross Margin % is 38.99. Ray's value of 35.70% is 8.4% below this industry median. Based on the distribution chart, Ray ranks #507 out of 944 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Ray has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ray's Gross Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Ray ranks #507 out of 944 companies for Gross Margin %. This places Ray in the lower half of its industry. The industry median Gross Margin % is 38.99. Ray's value of 35.70% is 8.4% below this benchmark. Historically, Ray's own Gross Margin % has ranged from 22.25 to 36.83 over the past decade. While the company's 10-year median is 32.69 vs. the industry median of 38.99, Ray 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.99, based on 944 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. Ray's current Gross Margin % of 35.70% is 8.4% 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 Ray and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ray's current Gross Margin % is 35.70%, which is near median its own 10-year median of 32.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ray stock overvalued right now?
Based on GuruFocus' analysis, Ray (TSE:4317) is currently considered Modestly Undervalued. The stock's GF Value™ is 円565.59, compared to a current price of 円493.00 — trading 12.8% below its estimated fair value. The current Gross Margin % is 35.70%, which is near median its 10-year median of 32.69 and 8.4% below the Media - Diversified industry median of 38.99. Ray's overall GF Score™ is 79/100. 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 Ray (TSE:4317), the current Gross Margin % is 35.70% 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 Ray (TSE:4317) Overvalued in 2026?
Based on GuruFocus' analysis, Ray stock appears to be undervalued.
The current stock price of 円493.00 is trading 12.8% below its estimated GF Value™ of 円565.59.
GuruFocus considers Ray to be Modestly Undervalued.
Key valuation signals for TSE:4317:
Gross Margin %: 35.70% (near median its 10-year median of 32.69)
GF Value™: 円565.59 vs. price of 円493.00 (12.8% below fair value)
Industry Position: 8.4% below the Media - Diversified median (#507 of 944)
No single metric tells the full story. See the TSE:4317 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ray Corp is a Japan-based advertising company that operates in two business segments. The Advertising Solution segment has two divisions: the SP and event division, which handles planning and production of sales promotions, campaigns, expos, and showrooms; and the TVCM division, which creates TV commercials and promotional videos. The Technical Solution segment includes a video equipment rental division for events and business presentations, and a post-production division offering video editing, DVD/Blu-ray, and CG production services.
79GF Score
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