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Sm Entertainment Japan CoTSE:4772 -1.25%52 Gross Margin % is 16.93% as of Dec. 2025, which is 9% below its 10-year median of 18.69. GuruFocus rates TSE:4772 with a GF Score™ of 52/100 and a GF Value™ of 円157.83 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 941 Media - Diversified companies, Sm Entertainment Japan Co ranks worse than 77.15% on this metric.
Sm Entertainment Japan Co (TSE:4772) 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
Sm Entertainment Japan Co had a gross margin of 16.93% for the quarter that ended in Dec. 2025 => 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.
Sm Entertainment Japan Co Gross Margin % Related Terms
Sm Entertainment Japan Co 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:4772 vs NFLX, DIS, WBD: Gross Margin % Comparison
For the Entertainment subindustry, Sm Entertainment Japan 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.
Sm Entertainment Japan Co Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sm Entertainment Japan Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sm Entertainment Japan 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.
Sm Entertainment Japan Co (TSE:4772) has a Gross Margin % of 16.93% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Sm Entertainment Japan Co and its competitors. This is near median its historical median of 18.69. Over the past decade, Sm Entertainment Japan Co's Gross Margin % has ranged from 8.34 to 21.22. According to the industry distribution chart, Sm Entertainment Japan Co ranks #726 out of 941 companies in the Media - Diversified industry, placing it in the top 77.2%.
Is Sm Entertainment Japan Co's Gross Margin % too high?
Sm Entertainment Japan Co's current Gross Margin % of 16.93% is near median its 10-year median of 18.69. Over the past 10 years, this metric has ranged from a low of 8.34 to a high of 21.22. The Media - Diversified industry median Gross Margin % is 38.99. Sm Entertainment Japan Co's value of 16.93% is 56.6% below this industry median. Based on the distribution chart, Sm Entertainment Japan Co ranks #726 out of 941 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Sm Entertainment Japan Co has a GF Score™ of 52/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sm Entertainment Japan Co's Gross Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Sm Entertainment Japan Co ranks #726 out of 941 companies for Gross Margin %. This places Sm Entertainment Japan Co in the lower half of its industry. The industry median Gross Margin % is 38.99. Sm Entertainment Japan Co's value of 16.93% is 56.6% below this benchmark. Historically, Sm Entertainment Japan Co's own Gross Margin % has ranged from 8.34 to 21.22 over the past decade. While the company's 10-year median is 18.69 vs. the industry median of 38.99, Sm Entertainment Japan 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.99, based on 941 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. Sm Entertainment Japan Co's current Gross Margin % of 16.93% is 56.6% 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 Sm Entertainment Japan Co and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sm Entertainment Japan Co's current Gross Margin % is 16.93%, which is near median its own 10-year median of 18.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sm Entertainment Japan Co stock overvalued right now?
Based on GuruFocus' analysis, Sm Entertainment Japan Co (TSE:4772) is currently considered Significantly Undervalued. The stock's GF Value™ is 円157.83, compared to a current price of 円79.00 — trading 49.9% below its estimated fair value. The current Gross Margin % is 16.93%, which is near median its 10-year median of 18.69 and 56.6% below the Media - Diversified industry median of 38.99. Sm Entertainment Japan Co's overall GF Score™ is 52/100 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 Sm Entertainment Japan Co (TSE:4772), the current Gross Margin % is 16.93% as of Dec. 2025. 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 Sm Entertainment Japan Co (TSE:4772) Overvalued in 2026?
Based on GuruFocus' analysis, Sm Entertainment Japan Co stock appears to be undervalued.
The current stock price of 円79.00 is trading 49.9% below its estimated GF Value™ of 円157.83.
GuruFocus considers Sm Entertainment Japan Co to be Significantly Undervalued.
Key valuation signals for TSE:4772:
Gross Margin %: 16.93% (near median its 10-year median of 18.69)
GF Value™: 円157.83 vs. price of 円79.00 (49.9% below fair value)
Industry Position: 56.6% below the Media - Diversified median (#726 of 941)
No single metric tells the full story. See the TSE:4772 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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