TSE:4333's Gross Margin % is not ranked
in the Software industry.
Industry Median: 40.41
vs TSE:4333: 18.85
Toho System Science Co had a gross margin of 19.71% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Toho System Science Co was 0.20% per year.
Toho System Science Co (TSE:4333) 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
Toho System Science Co had a gross margin of 19.71% for the quarter that ended in Sep. 2025 => No sustainable 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.
Toho System Science Co Gross Margin % Related Terms
Toho System Science Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Toho System Science 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:4333 vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Toho System Science 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.
Toho System Science Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Toho System Science Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Toho System Science 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.
Toho System Science Co (TSE:4333) has a Gross Margin % of 19.71% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Toho System Science Co and its competitors. This is 11% above median its historical median of 17.81. Over the past decade, Toho System Science Co's Gross Margin % has ranged from 16.97 to 18.85.
Is Toho System Science Co's Gross Margin % too high?
Toho System Science Co's current Gross Margin % of 19.71% is 11% above median its 10-year median of 17.81. Over the past 10 years, this metric has ranged from a low of 16.97 to a high of 18.85. The Software industry median Gross Margin % is 40.41. Toho System Science Co's value of 19.71% is 51.2% below this industry median. Overall, Toho System Science Co has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Toho System Science Co's Gross Margin % compare to CRM and SHOP?
Toho System Science Co's Gross Margin % of 19.71% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.41. Toho System Science Co's value of 19.71% is 51.2% below this benchmark. Historically, Toho System Science Co's own Gross Margin % has ranged from 16.97 to 18.85 over the past decade. While the company's 10-year median is 17.81 vs. the industry median of 40.41, Toho System Science 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 40.41, 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. Toho System Science Co's current Gross Margin % of 19.71% is 51.2% 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 Toho System Science Co and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toho System Science Co's current Gross Margin % is 19.71%, which is 11% above median its own 10-year median of 17.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toho System Science Co stock overvalued right now?
Toho System Science Co (TSE:4333) has a current Gross Margin % of 19.71%. The stock's GF Value™ is 円1,343.48, compared to a current price of 円1,144.00 — trading 14.8% below its estimated fair value. The current Gross Margin % is 19.71%, which is 11% above median its 10-year median of 17.81 and 51.2% below the Software industry median of 40.41. Toho System Science Co's overall GF Score™ is 61/100 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 Toho System Science Co (TSE:4333), the current Gross Margin % is 19.71% as of Sep. 2025. 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 Toho System Science Co (TSE:4333) Overvalued in 2026?
Based on GuruFocus' analysis, Toho System Science Co stock appears to be undervalued.
The current stock price of 円1,144.00 is trading 14.8% below its estimated GF Value™ of 円1,343.48.
Key valuation signals for TSE:4333:
Gross Margin %: 19.71% (11% above median its 10-year median of 17.81)
GF Value™: 円1,343.48 vs. price of 円1,144.00 (14.8% below fair value)
Industry Position: 51.2% below the Software median
No single metric tells the full story. See the TSE:4333 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toho System Science Co Ltd is engaged in business of software development which include software development for general purpose machines, and information system services which include computer operation management work.
61GF Score
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