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SIG Group CoTSE:4386 -2.20%93 Gross Margin % is 23.37% as of Mar. 2026, which is 2% above its 10-year median of 22.86. GuruFocus rates TSE:4386 with a GF Score™ of 93/100 and a GF Value™ of 円1,026.41 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,689 Software companies, SIG Group Co ranks worse than 76.65% on this metric.
SIG Group Co (TSE:4386) 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
SIG Group Co had a gross margin of 23.37% for the quarter that ended in Mar. 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.
SIG Group Co Gross Margin % Related Terms
SIG Group Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for SIG Group 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:4386 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, SIG Group 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.
SIG Group Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, SIG Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SIG Group 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.
SIG Group Co (TSE:4386) has a Gross Margin % of 23.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SIG Group Co and its competitors. This is near median its historical median of 22.86. Over the past decade, SIG Group Co's Gross Margin % has ranged from 20.52 to 24.05. According to the industry distribution chart, SIG Group Co ranks #2061 out of 2689 companies in the Software industry, placing it in the top 76.6%.
Is SIG Group Co's Gross Margin % too high?
SIG Group Co's current Gross Margin % of 23.37% is near median its 10-year median of 22.86. Over the past 10 years, this metric has ranged from a low of 20.52 to a high of 24.05. The Software industry median Gross Margin % is 40.77. SIG Group Co's value of 23.37% is 42.7% below this industry median. Based on the distribution chart, SIG Group Co ranks #2061 out of 2689 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, SIG Group Co has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SIG Group Co's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, SIG Group Co ranks #2061 out of 2689 companies for Gross Margin %. This places SIG Group Co in the lower half of its industry. The industry median Gross Margin % is 40.77. SIG Group Co's value of 23.37% is 42.7% below this benchmark. Historically, SIG Group Co's own Gross Margin % has ranged from 20.52 to 24.05 over the past decade. While the company's 10-year median is 22.86 vs. the industry median of 40.77, SIG Group 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 40.77, based on 2,689 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. SIG Group Co's current Gross Margin % of 23.37% is 42.7% 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 SIG Group Co and its competitors. For the Software industry, the median Gross Margin % is 40.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SIG Group Co's current Gross Margin % is 23.37%, which is near median its own 10-year median of 22.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SIG Group Co stock overvalued right now?
Based on GuruFocus' analysis, SIG Group Co (TSE:4386) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,026.41, compared to a current price of 円889.00 — trading 13.4% below its estimated fair value. The current Gross Margin % is 23.37%, which is near median its 10-year median of 22.86 and 42.7% below the Software industry median of 40.77. SIG Group Co's overall GF Score™ is 93/100 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 SIG Group Co (TSE:4386), the current Gross Margin % is 23.37% 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 SIG Group Co (TSE:4386) Overvalued in 2026?
Based on GuruFocus' analysis, SIG Group Co stock appears to be undervalued.
The current stock price of 円889.00 is trading 13.4% below its estimated GF Value™ of 円1,026.41.
GuruFocus considers SIG Group Co to be Modestly Undervalued.
Key valuation signals for TSE:4386:
Gross Margin %: 23.37% (near median its 10-year median of 22.86)
GF Value™: 円1,026.41 vs. price of 円889.00 (13.4% below fair value)
Industry Position: 42.7% below the Software median (#2061 of 2689)
No single metric tells the full story. See the TSE:4386 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SIG Group Co Ltd is an information technology services. The company's services include system intergration, solution sales, information technology infrastructure solution, and security.
93GF Score
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