Zuu CoTSE:4387 -0.43%46 Gross Margin % is 69.66% as of Mar. 2026, which is 3% below its 10-year median of 71.68. GuruFocus rates TSE:4387 with a GF Score™ of 46/100 and a GF Value™ of 円609.07 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 2,681 Software companies, Zuu Co ranks better than 74.75% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Zuu Co's Gross Profit for the
six
months ended in Mar. 2026 was 円933 Mil. Zuu Co's Revenue for the
six
months ended in Mar. 2026 was 円1,339 Mil. Therefore, Zuu Co's Gross Margin % for the quarter that ended in Mar. 2026 was 69.66%.
Warning Sign:
Zuu Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Zuu Co's Gross Margin % or its related term are showing as below:
TSE:4387'
s Gross Margin % Range Over the Past 10 Years
Min: 64.79 Med: 71.68 Max: 77.36
Current: 64.79
During the past 10 years, the highestGross Margin % of Zuu Co was 77.36%. The lowest was 64.79%. And the median was 71.68%.
TSE:4387's Gross Margin % is ranked better than 74.75% of 2681
companies
in the Software industry
Industry Median: 40.41
vs TSE:4387: 64.79
Zuu Co had a gross margin of 69.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zuu Co was -3.10% per year.
Zuu Co (TSE:4387) 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
Zuu Co had a gross margin of 69.66% 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.
Zuu Co Gross Margin % Related Terms
Zuu Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zuu 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:4387 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Zuu 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.
Zuu Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Zuu Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zuu 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.
Zuu Co (TSE:4387) has a Gross Margin % of 69.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zuu Co and its competitors. This is near median its historical median of 71.68. Over the past decade, Zuu Co's Gross Margin % has ranged from 64.79 to 77.36. According to the industry distribution chart, Zuu Co ranks #677 out of 2681 companies in the Software industry, placing it in the top 25.3%.
Is Zuu Co's Gross Margin % too high?
Zuu Co's current Gross Margin % of 69.66% is near median its 10-year median of 71.68. Over the past 10 years, this metric has ranged from a low of 64.79 to a high of 77.36. The Software industry median Gross Margin % is 40.41. Zuu Co's value of 69.66% is 72.4% above this industry median. Based on the distribution chart, Zuu Co ranks #677 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Zuu Co has a GF Score™ of 46/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zuu Co's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Zuu Co ranks #677 out of 2681 companies for Gross Margin %. This puts Zuu Co in the upper half of its industry. The industry median Gross Margin % is 40.41. Zuu Co's value of 69.66% is 72.4% above this benchmark. Historically, Zuu Co's own Gross Margin % has ranged from 64.79 to 77.36 over the past decade. While the company's 10-year median is 71.68 vs. the industry median of 40.41, Zuu Co 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. Zuu Co's current Gross Margin % of 69.66% is 72.4% 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 Zuu 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. Zuu Co's current Gross Margin % is 69.66%, which is near median its own 10-year median of 71.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zuu Co stock overvalued right now?
Based on GuruFocus' analysis, Zuu Co (TSE:4387) is currently considered Modestly Undervalued. The stock's GF Value™ is 円609.07, compared to a current price of 円463.00 — trading 24% below its estimated fair value. The current Gross Margin % is 69.66%, which is near median its 10-year median of 71.68 and 72.4% above the Software industry median of 40.41. Zuu Co's overall GF Score™ is 46/100 with 8 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 Zuu Co (TSE:4387), the current Gross Margin % is 69.66% 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 Zuu Co (TSE:4387) Overvalued in 2026?
Based on GuruFocus' analysis, Zuu Co stock appears to be undervalued.
The current stock price of 円463.00 is trading 24% below its estimated GF Value™ of 円609.07.
GuruFocus considers Zuu Co to be Modestly Undervalued.
Key valuation signals for TSE:4387:
Gross Margin %: 69.66% (near median its 10-year median of 71.68)
GF Value™: 円609.07 vs. price of 円463.00 (24% below fair value)
Industry Position: 72.4% above the Software median (#677 of 2681)
No single metric tells the full story. See the TSE:4387 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zuu Co Ltd is a fintech company. Its businesses are grouped into following operating businesses: fintech platform business, media service, and fintech support service. The company through its ZUU online education portal offers financial information in Japan and Singapore.
46GF Score
Get the complete analysis for TSE:4387
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