Ryoyu Systems CoTSE:4685 +0.93%78 Gross Margin % is 23.95% as of Mar. 2026, which is 28% above its 10-year median of 18.71. GuruFocus rates TSE:4685 with a GF Score™ of 78/100 and a GF Value™ of 円2,631.32 (Fairly Valued). The stock has 2 warning signs investors should review. Among 511 Conglomerates companies, Ryoyu Systems Co ranks worse than 57.14% on this metric.
The historical rank and industry rank for Ryoyu Systems Co's Gross Margin % or its related term are showing as below:
TSE:4685'
s Gross Margin % Range Over the Past 10 Years
Min: 14.96 Med: 18.71 Max: 23.1
Current: 23.1
During the past 13 years, the highestGross Margin % of Ryoyu Systems Co was 23.10%. The lowest was 14.96%. And the median was 18.71%.
TSE:4685's Gross Margin % is ranked worse than 57.14% of 511
companies
in the Conglomerates industry
Industry Median: 25.96
vs TSE:4685: 23.10
Ryoyu Systems Co had a gross margin of 23.95% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ryoyu Systems Co was 5.00% per year.
Ryoyu Systems Co (TSE:4685) 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
Ryoyu Systems Co had a gross margin of 23.95% for the quarter that ended in Mar. 2026 => 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.
Ryoyu Systems Co Gross Margin % Related Terms
Ryoyu Systems Co Gross Margin % Historical Data
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The historical data trend for Ryoyu Systems 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.
For the Conglomerates subindustry, Ryoyu Systems 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.
Ryoyu Systems Co Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Ryoyu Systems Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ryoyu Systems 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.
Ryoyu Systems Co (TSE:4685) has a Gross Margin % of 23.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ryoyu Systems Co and its competitors. This is 28% above median its historical median of 18.71. Over the past decade, Ryoyu Systems Co's Gross Margin % has ranged from 14.96 to 23.10. According to the industry distribution chart, Ryoyu Systems Co ranks #292 out of 511 companies in the Conglomerates industry, placing it in the top 57.1%.
Is Ryoyu Systems Co's Gross Margin % too high?
Ryoyu Systems Co's current Gross Margin % of 23.95% is 28% above median its 10-year median of 18.71. Over the past 10 years, this metric has ranged from a low of 14.96 to a high of 23.10. The Conglomerates industry median Gross Margin % is 25.96. Ryoyu Systems Co's value of 23.95% is 7.7% below this industry median. Based on the distribution chart, Ryoyu Systems Co ranks #292 out of 511 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Ryoyu Systems Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ryoyu Systems Co's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Ryoyu Systems Co ranks #292 out of 511 companies for Gross Margin %. This places Ryoyu Systems Co in the lower half of its industry. The industry median Gross Margin % is 25.96. Ryoyu Systems Co's value of 23.95% is 7.7% below this benchmark. Historically, Ryoyu Systems Co's own Gross Margin % has ranged from 14.96 to 23.10 over the past decade. While the company's 10-year median is 18.71 vs. the industry median of 25.96, Ryoyu Systems 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 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. Ryoyu Systems Co's current Gross Margin % of 23.95% is 7.7% 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 Ryoyu Systems Co and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ryoyu Systems Co's current Gross Margin % is 23.95%, which is 28% above median its own 10-year median of 18.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ryoyu Systems Co stock overvalued right now?
Based on GuruFocus' analysis, Ryoyu Systems Co (TSE:4685) is currently considered Fairly Valued. The stock's GF Value™ is 円2,631.32, compared to a current price of 円2,713.00 — trading 3.1% above its estimated fair value. The current Gross Margin % is 23.95%, which is 28% above median its 10-year median of 18.71 and 7.7% below the Conglomerates industry median of 25.96. Ryoyu Systems Co's overall GF Score™ is 78/100 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 Ryoyu Systems Co (TSE:4685), the current Gross Margin % is 23.95% 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 Ryoyu Systems Co (TSE:4685) Overvalued in 2026?
Based on GuruFocus' analysis, Ryoyu Systems Co stock appears to be overvalued.
The current stock price of 円2,713.00 is trading 3.1% above its estimated GF Value™ of 円2,631.32.
GuruFocus considers Ryoyu Systems Co to be Fairly Valued.
Key valuation signals for TSE:4685:
Gross Margin %: 23.95% (28% above median its 10-year median of 18.71)
GF Value™: 円2,631.32 vs. price of 円2,713.00 (3.1% above fair value)
Industry Position: 7.7% below the Conglomerates median (#292 of 511)
No single metric tells the full story. See the TSE:4685 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ryoyu Systems Co Ltd is an information services providing company. The company is engaged in design, development, operation, and maintenance of information and communication systems, sales of equipment related to information and communication systems, design, analysis, and simulation of industrial products, and various information processing services using information and communication systems.
78GF Score
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