Showa System EngineeringTSE:4752 75 Gross Margin % is 15.82% as of Mar. 2026, which is 3% below its 10-year median of 16.31. GuruFocus rates TSE:4752 with a GF Score™ of 75/100 and a GF Value™ of 円1,589.75 (Fairly Valued). Among 2,678 Software companies, Showa System Engineering ranks worse than 82.19% on this metric.
Showa System Engineering (TSE:4752) 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
Showa System Engineering had a gross margin of 15.82% for the quarter that ended in Mar. 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.
Showa System Engineering Gross Margin % Related Terms
Showa System Engineering 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:4752 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Showa System Engineering'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.
Showa System Engineering Gross Margin % vs Software Industry
For the Software industry and Technology sector, Showa System Engineering's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Showa System Engineering'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.
Showa System Engineering (TSE:4752) has a Gross Margin % of 15.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Showa System Engineering and its competitors. This is near median its historical median of 16.31. Over the past decade, Showa System Engineering's Gross Margin % has ranged from 14.26 to 18.19. According to the industry distribution chart, Showa System Engineering ranks #2201 out of 2678 companies in the Software industry, placing it in the top 82.2%.
Is Showa System Engineering's Gross Margin % too high?
Showa System Engineering's current Gross Margin % of 15.82% is near median its 10-year median of 16.31. Over the past 10 years, this metric has ranged from a low of 14.26 to a high of 18.19. The Software industry median Gross Margin % is 40.46. Showa System Engineering's value of 15.82% is 60.9% below this industry median. Based on the distribution chart, Showa System Engineering ranks #2201 out of 2678 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Showa System Engineering has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Showa System Engineering's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Showa System Engineering ranks #2201 out of 2678 companies for Gross Margin %. This places Showa System Engineering in the lower half of its industry. The industry median Gross Margin % is 40.46. Showa System Engineering's value of 15.82% is 60.9% below this benchmark. Historically, Showa System Engineering's own Gross Margin % has ranged from 14.26 to 18.19 over the past decade. While the company's 10-year median is 16.31 vs. the industry median of 40.46, Showa System Engineering 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 40.46, based on 2,678 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. Showa System Engineering's current Gross Margin % of 15.82% is 60.9% 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 Showa System Engineering and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa System Engineering's current Gross Margin % is 15.82%, which is near median its own 10-year median of 16.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa System Engineering stock overvalued right now?
Based on GuruFocus' analysis, Showa System Engineering (TSE:4752) is currently considered Fairly Valued. The stock's GF Value™ is 円1,589.75, compared to a current price of 円1,550.00 — trading 2.5% below its estimated fair value. The current Gross Margin % is 15.82%, which is near median its 10-year median of 16.31 and 60.9% below the Software industry median of 40.46. Showa System Engineering's overall GF Score™ is 75/100. 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 Showa System Engineering (TSE:4752), the current Gross Margin % is 15.82% 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 Showa System Engineering (TSE:4752) Overvalued in 2026?
Based on GuruFocus' analysis, Showa System Engineering stock appears to be undervalued.
The current stock price of 円1,550.00 is trading 2.5% below its estimated GF Value™ of 円1,589.75.
GuruFocus considers Showa System Engineering to be Fairly Valued.
Key valuation signals for TSE:4752:
Gross Margin %: 15.82% (near median its 10-year median of 16.31)
GF Value™: 円1,589.75 vs. price of 円1,550.00 (2.5% below fair value)
Industry Position: 60.9% below the Software median (#2201 of 2678)
No single metric tells the full story. See the TSE:4752 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Showa System Engineering Corp is engaged in development of information systems, system integration, consulting, software design, and development related to corporate computer systems. The company also provides business support services to various industries, such as administrative services for financial institutions, medical checkup reservations, and scanning services.
75GF Score
Get the complete analysis for TSE:4752
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:4752 has been successfully added to your 
