Simplex HoldingsTSE:4373 +4.76%94 Gross Margin % is 43.51% as of Mar. 2026, which is 4% above its 10-year median of 41.77. GuruFocus rates TSE:4373 with a GF Score™ of 94/100 and a GF Value™ of 円1,078.82 (Fairly Valued). Among 2,681 Software companies, Simplex Holdings ranks better than 53.52% 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
Simplex Holdings had a gross margin of 43.51% 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.
Simplex Holdings Gross Margin % Related Terms
Simplex Holdings Gross Margin % Historical Data
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The historical data trend for Simplex Holdings'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:4373 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Simplex Holdings'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.
Simplex Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Simplex Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Simplex Holdings'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.
Simplex Holdings (TSE:4373) has a Gross Margin % of 43.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Simplex Holdings and its competitors. This is near median its historical median of 41.77. Over the past decade, Simplex Holdings' Gross Margin % has ranged from 34.93 to 43.66. According to the industry distribution chart, Simplex Holdings ranks #1246 out of 2681 companies in the Software industry, placing it in the top 46.5%.
Is Simplex Holdings' Gross Margin % too high?
Simplex Holdings' current Gross Margin % of 43.51% is near median its 10-year median of 41.77. Over the past 10 years, this metric has ranged from a low of 34.93 to a high of 43.66. The Software industry median Gross Margin % is 40.41. Simplex Holdings' value of 43.51% is 7.7% above this industry median. Based on the distribution chart, Simplex Holdings ranks #1246 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Simplex Holdings has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Simplex Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Simplex Holdings ranks #1246 out of 2681 companies for Gross Margin %. This puts Simplex Holdings in the upper half of its industry. The industry median Gross Margin % is 40.41. Simplex Holdings' value of 43.51% is 7.7% above this benchmark. Historically, Simplex Holdings' own Gross Margin % has ranged from 34.93 to 43.66 over the past decade. While the company's 10-year median is 41.77 vs. the industry median of 40.41, Simplex Holdings 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 40.41, 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. Simplex Holdings's current Gross Margin % of 43.51% is 7.7% 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 Simplex Holdings 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. Simplex Holdings's current Gross Margin % is 43.51%, which is near median its own 10-year median of 41.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simplex Holdings stock overvalued right now?
Based on GuruFocus' analysis, Simplex Holdings (TSE:4373) is currently considered Fairly Valued. The stock's GF Value™ is 円1,078.82, compared to a current price of 円990.00 — trading 8.2% below its estimated fair value. The current Gross Margin % is 43.51%, which is near median its 10-year median of 41.77 and 7.7% above the Software industry median of 40.41. Simplex Holdings' overall GF Score™ is 94/100. 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 Simplex Holdings (TSE:4373), the current Gross Margin % is 43.51% 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 Simplex Holdings (TSE:4373) Overvalued in 2026?
Based on GuruFocus' analysis, Simplex Holdings stock appears to be undervalued.
The current stock price of 円990.00 is trading 8.2% below its estimated GF Value™ of 円1,078.82.
GuruFocus considers Simplex Holdings to be Fairly Valued.
Key valuation signals for TSE:4373:
Gross Margin %: 43.51% (near median its 10-year median of 41.77)
GF Value™: 円1,078.82 vs. price of 円990.00 (8.2% below fair value)
Industry Position: 7.7% above the Software median (#1246 of 2681)
No single metric tells the full story. See the TSE:4373 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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