Serverworks CoTSE:4434 +1.69%83 Gross Margin % is 9.62% as of Feb. 2026, which is 40% below its 10-year median of 15.94. GuruFocus rates TSE:4434 with a GF Score™ of 83/100 and a GF Value™ of 円3,582.50 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,681 Software companies, Serverworks Co ranks worse than 92.43% on this metric.
Serverworks Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.5%.
The historical rank and industry rank for Serverworks Co's Gross Margin % or its related term are showing as below:
TSE:4434'
s Gross Margin % Range Over the Past 10 Years
Min: 9.11 Med: 15.94 Max: 19.2
Current: 9.11
During the past 9 years, the highestGross Margin % of Serverworks Co was 19.20%. The lowest was 9.11%. And the median was 15.94%.
TSE:4434's Gross Margin % is ranked worse than 92.43% of 2681
companies
in the Software industry
Industry Median: 40.41
vs TSE:4434: 9.11
Serverworks Co had a gross margin of 9.62% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Serverworks Co was -6.50% per year.
Serverworks Co (TSE:4434) 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
Serverworks Co had a gross margin of 9.62% for the quarter that ended in Feb. 2026 => No sustainable 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.
Serverworks Co Gross Margin % Related Terms
Serverworks Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Serverworks 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:4434 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Serverworks 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.
Serverworks Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Serverworks Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Serverworks 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.
Serverworks Co (TSE:4434) has a Gross Margin % of 9.62% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Serverworks Co and its competitors. This is 40% below median its historical median of 15.94. Over the past decade, Serverworks Co's Gross Margin % has ranged from 9.11 to 19.20. According to the industry distribution chart, Serverworks Co ranks #2478 out of 2681 companies in the Software industry, placing it in the top 92.4%.
Is Serverworks Co's Gross Margin % too high?
Serverworks Co's current Gross Margin % of 9.62% is 40% below median its 10-year median of 15.94. Over the past 10 years, this metric has ranged from a low of 9.11 to a high of 19.20. The Software industry median Gross Margin % is 40.41. Serverworks Co's value of 9.62% is 76.2% below this industry median. Based on the distribution chart, Serverworks Co ranks #2478 out of 2681 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Serverworks Co has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Serverworks Co's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Serverworks Co ranks #2478 out of 2681 companies for Gross Margin %. This places Serverworks Co in the lower half of its industry. The industry median Gross Margin % is 40.41. Serverworks Co's value of 9.62% is 76.2% below this benchmark. Historically, Serverworks Co's own Gross Margin % has ranged from 9.11 to 19.20 over the past decade. While the company's 10-year median is 15.94 vs. the industry median of 40.41, Serverworks 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 40.41, 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. Serverworks Co's current Gross Margin % of 9.62% is 76.2% 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 Serverworks 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. Serverworks Co's current Gross Margin % is 9.62%, which is 40% below median its own 10-year median of 15.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Serverworks Co stock overvalued right now?
Based on GuruFocus' analysis, Serverworks Co (TSE:4434) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,582.50, compared to a current price of 円1,987.00 — trading 44.5% below its estimated fair value. The current Gross Margin % is 9.62%, which is 40% below median its 10-year median of 15.94 and 76.2% below the Software industry median of 40.41. Serverworks Co's overall GF Score™ is 83/100 with 4 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 Serverworks Co (TSE:4434), the current Gross Margin % is 9.62% as of Feb. 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 Serverworks Co (TSE:4434) Overvalued in 2026?
Based on GuruFocus' analysis, Serverworks Co stock appears to be undervalued.
The current stock price of 円1,987.00 is trading 44.5% below its estimated GF Value™ of 円3,582.50.
GuruFocus considers Serverworks Co to be Significantly Undervalued.
Key valuation signals for TSE:4434:
Gross Margin %: 9.62% (40% below median its 10-year median of 15.94)
GF Value™: 円3,582.50 vs. price of 円1,987.00 (44.5% below fair value)
Industry Position: 76.2% below the Software median (#2478 of 2681)
No single metric tells the full story. See the TSE:4434 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Serverworks Co Ltd is a cloud integrator that provides integration business and services specialized for Amazon Web Services (AWS). The company's services include AWS transition support, AWS resale service, AWS operation automation service.
83GF Score
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