Finatext HoldingsTSE:4419 +10.82%51 Gross Margin % is 71.84% as of Mar. 2026, which is 12% above its 10-year median of 63.91. GuruFocus rates TSE:4419 with a GF Score™ of 51/100 and a GF Value™ of 円1,804.53 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,681 Software companies, Finatext Holdings ranks better than 78.96% 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
Finatext Holdings had a gross margin of 71.84% 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.
Finatext Holdings Gross Margin % Related Terms
Finatext Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Finatext 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:4419 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Finatext 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.
Finatext Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, Finatext Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Finatext 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.
Finatext Holdings (TSE:4419) has a Gross Margin % of 71.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Finatext Holdings and its competitors. This is 12% above median its historical median of 63.91. Over the past decade, Finatext Holdings' Gross Margin % has ranged from 54.94 to 75.23. According to the industry distribution chart, Finatext Holdings ranks #564 out of 2681 companies in the Software industry, placing it in the top 21%.
Is Finatext Holdings' Gross Margin % too high?
Finatext Holdings' current Gross Margin % of 71.84% is 12% above median its 10-year median of 63.91. Over the past 10 years, this metric has ranged from a low of 54.94 to a high of 75.23. The Software industry median Gross Margin % is 40.41. Finatext Holdings' value of 71.84% is 77.8% above this industry median. Based on the distribution chart, Finatext Holdings ranks #564 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Finatext Holdings has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Finatext Holdings' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Finatext Holdings ranks #564 out of 2681 companies for Gross Margin %. This places Finatext Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.41. Finatext Holdings' value of 71.84% is 77.8% above this benchmark. Historically, Finatext Holdings' own Gross Margin % has ranged from 54.94 to 75.23 over the past decade. While the company's 10-year median is 63.91 vs. the industry median of 40.41, Finatext 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. Finatext Holdings's current Gross Margin % of 71.84% is 77.8% 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 Finatext 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. Finatext Holdings's current Gross Margin % is 71.84%, which is 12% above median its own 10-year median of 63.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finatext Holdings stock overvalued right now?
Based on GuruFocus' analysis, Finatext Holdings (TSE:4419) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,804.53, compared to a current price of 円1,516.00 — trading 16% below its estimated fair value. The current Gross Margin % is 71.84%, which is 12% above median its 10-year median of 63.91 and 77.8% above the Software industry median of 40.41. Finatext Holdings' overall GF Score™ is 51/100 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 Finatext Holdings (TSE:4419), the current Gross Margin % is 71.84% 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 Finatext Holdings (TSE:4419) Overvalued in 2026?
Based on GuruFocus' analysis, Finatext Holdings stock appears to be undervalued.
The current stock price of 円1,516.00 is trading 16% below its estimated GF Value™ of 円1,804.53.
GuruFocus considers Finatext Holdings to be Modestly Undervalued.
Key valuation signals for TSE:4419:
Gross Margin %: 71.84% (12% above median its 10-year median of 63.91)
GF Value™: 円1,804.53 vs. price of 円1,516.00 (16% below fair value)
Industry Position: 77.8% above the Software median (#564 of 2681)
No single metric tells the full story. See the TSE:4419 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Finatext Holdings Ltd is engaged in providing cloud native infrastructure for wealthmanagement/insurance providers, and support data analysis development.
51GF Score
Get the complete analysis for TSE:4419
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4419 has been successfully added to your 
