Flect CoTSE:4414 +3.04%77 Gross Margin % is 48.04% as of Mar. 2026, which is 11% above its 10-year median of 43.32. GuruFocus rates TSE:4414 with a GF Score™ of 77/100 and a GF Value™ of 円2,861.55 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,681 Software companies, Flect Co ranks better than 57.93% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Flect Co's Gross Profit for the
six
months ended in Mar. 2026 was 円2,132 Mil. Flect Co's Revenue for the
six
months ended in Mar. 2026 was 円4,438 Mil. Therefore, Flect Co's Gross Margin % for the quarter that ended in Mar. 2026 was 48.04%.
The historical rank and industry rank for Flect Co's Gross Margin % or its related term are showing as below:
TSE:4414'
s Gross Margin % Range Over the Past 10 Years
Min: 38.55 Med: 43.32 Max: 47.36
Current: 47.36
During the past 7 years, the highestGross Margin % of Flect Co was 47.36%. The lowest was 38.55%. And the median was 43.32%.
TSE:4414's Gross Margin % is ranked better than 57.93% of 2681
companies
in the Software industry
Industry Median: 40.41
vs TSE:4414: 47.36
Flect Co had a gross margin of 48.04% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Flect Co was 2.00% per year.
Flect Co (TSE:4414) 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
Flect Co had a gross margin of 48.04% 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.
Flect Co Gross Margin % Related Terms
Flect Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Flect 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:4414 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Flect 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.
Flect Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Flect Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Flect 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.
Flect Co (TSE:4414) has a Gross Margin % of 48.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Flect Co and its competitors. This is 11% above median its historical median of 43.32. Over the past decade, Flect Co's Gross Margin % has ranged from 38.55 to 47.36. According to the industry distribution chart, Flect Co ranks #1128 out of 2681 companies in the Software industry, placing it in the top 42.1%.
Is Flect Co's Gross Margin % too high?
Flect Co's current Gross Margin % of 48.04% is 11% above median its 10-year median of 43.32. Over the past 10 years, this metric has ranged from a low of 38.55 to a high of 47.36. The Software industry median Gross Margin % is 40.41. Flect Co's value of 48.04% is 18.9% above this industry median. Based on the distribution chart, Flect Co ranks #1128 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Flect Co has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Flect Co's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Flect Co ranks #1128 out of 2681 companies for Gross Margin %. This puts Flect Co in the upper half of its industry. The industry median Gross Margin % is 40.41. Flect Co's value of 48.04% is 18.9% above this benchmark. Historically, Flect Co's own Gross Margin % has ranged from 38.55 to 47.36 over the past decade. While the company's 10-year median is 43.32 vs. the industry median of 40.41, Flect 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. Flect Co's current Gross Margin % of 48.04% is 18.9% 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 Flect 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. Flect Co's current Gross Margin % is 48.04%, which is 11% above median its own 10-year median of 43.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flect Co stock overvalued right now?
Based on GuruFocus' analysis, Flect Co (TSE:4414) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,861.55, compared to a current price of 円1,185.00 — trading 58.6% below its estimated fair value. The current Gross Margin % is 48.04%, which is 11% above median its 10-year median of 43.32 and 18.9% above the Software industry median of 40.41. Flect Co's overall GF Score™ is 77/100 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 Flect Co (TSE:4414), the current Gross Margin % is 48.04% 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 Flect Co (TSE:4414) Overvalued in 2026?
Based on GuruFocus' analysis, Flect Co stock appears to be undervalued.
The current stock price of 円1,185.00 is trading 58.6% below its estimated GF Value™ of 円2,861.55.
GuruFocus considers Flect Co to be Significantly Undervalued.
Key valuation signals for TSE:4414:
Gross Margin %: 48.04% (11% above median its 10-year median of 43.32)
GF Value™: 円2,861.55 vs. price of 円1,185.00 (58.6% below fair value)
Industry Position: 18.9% above the Software median (#1128 of 2681)
No single metric tells the full story. See the TSE:4414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Flect Co Ltd is a multi-cloud integrator that supports companies' digital transformation (DX) with cloud technology and design. The company provides a range of digital solutions for domestic businesses, including IoT, mobility, and AI services across multiple cloud platforms. It also offers e-commerce systems for both corporate clients (B2B) and customer-facing retail (B2C), along with community platforms to enhance customer engagement. Additionally, it supports API, ID, and data integration through its unified platforms. It operates in a single segment, the cloud solutions business.
77GF Score
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