System Support HoldingsTSE:4396 -1.32%77 Gross Margin % is 28.90% as of Dec. 2025, which is 13% above its 10-year median of 25.65. GuruFocus rates TSE:4396 with a GF Score™ of 77/100 and a GF Value™ of 円1,526.09 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,680 Software companies, System Support Holdings ranks worse than 65.52% on this metric.
TSE:4396's Gross Margin % is ranked worse than 65.52% of 2680
companies
in the Software industry
Industry Median: 40.45
vs TSE:4396: 28.42
System Support Holdings had a gross margin of 28.90% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for System Support Holdings was 2.00% per year.
System Support Holdings (TSE:4396) 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
System Support Holdings had a gross margin of 28.90% for the quarter that ended in Dec. 2025 => 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.
System Support Holdings Gross Margin % Related Terms
System Support Holdings Gross Margin % Historical Data
* 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:4396 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, System Support 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.
System Support Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, System Support Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where System Support 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.
System Support Holdings (TSE:4396) has a Gross Margin % of 28.90% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on System Support Holdings and its competitors. This is 13% above median its historical median of 25.65. Over the past decade, System Support Holdings' Gross Margin % has ranged from 23.17 to 28.42. According to the industry distribution chart, System Support Holdings ranks #1756 out of 2680 companies in the Software industry, placing it in the top 65.5%.
Is System Support Holdings' Gross Margin % too high?
System Support Holdings' current Gross Margin % of 28.90% is 13% above median its 10-year median of 25.65. Over the past 10 years, this metric has ranged from a low of 23.17 to a high of 28.42. The Software industry median Gross Margin % is 40.45. System Support Holdings' value of 28.90% is 28.6% below this industry median. Based on the distribution chart, System Support Holdings ranks #1756 out of 2680 companies in the Software industry, which is below the industry midpoint. Overall, System Support Holdings has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does System Support Holdings' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, System Support Holdings ranks #1756 out of 2680 companies for Gross Margin %. This places System Support Holdings in the lower half of its industry. The industry median Gross Margin % is 40.45. System Support Holdings' value of 28.90% is 28.6% below this benchmark. Historically, System Support Holdings' own Gross Margin % has ranged from 23.17 to 28.42 over the past decade. While the company's 10-year median is 25.65 vs. the industry median of 40.45, System Support Holdings 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 40.45, based on 2,680 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. System Support Holdings's current Gross Margin % of 28.90% is 28.6% 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 System Support Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. System Support Holdings's current Gross Margin % is 28.90%, which is 13% above median its own 10-year median of 25.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is System Support Holdings stock overvalued right now?
Based on GuruFocus' analysis, System Support Holdings (TSE:4396) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,526.09, compared to a current price of 円972.00 — trading 36.3% below its estimated fair value. The current Gross Margin % is 28.90%, which is 13% above median its 10-year median of 25.65 and 28.6% below the Software industry median of 40.45. System Support Holdings' overall GF Score™ is 77/100 with 2 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 System Support Holdings (TSE:4396), the current Gross Margin % is 28.90% as of Dec. 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 System Support Holdings (TSE:4396) Overvalued in 2026?
Based on GuruFocus' analysis, System Support Holdings stock appears to be undervalued.
The current stock price of 円972.00 is trading 36.3% below its estimated GF Value™ of 円1,526.09.
GuruFocus considers System Support Holdings to be Significantly Undervalued.
Key valuation signals for TSE:4396:
Gross Margin %: 28.90% (13% above median its 10-year median of 25.65)
GF Value™: 円1,526.09 vs. price of 円972.00 (36.3% below fair value)
Industry Position: 28.6% below the Software median (#1756 of 2680)
No single metric tells the full story. See the TSE:4396 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
System Support Holdings Inc is engaged in providing systems solutions which include system integration, transition to cloud-based infrastructure, ERP integration, data center running, and package-based software development.
77GF Score
Get the complete analysis for TSE:4396
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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