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GMO internetTSE:4784 +1.63%53 Gross Margin % is 33.31% as of Dec. 2025, which is 51% above its 10-year median of 22.13. GuruFocus rates TSE:4784 with a GF Score™ of 53/100 and a GF Value™ of 円159.70 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,690 Software companies, GMO internet ranks worse than 59.63% on this metric.
GMO internet (TSE:4784) 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
GMO internet had a gross margin of 33.31% for the quarter that ended in Dec. 2025 => 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.
GMO internet Gross Margin % Related Terms
GMO internet Gross Margin % Historical Data
* Premium members only.
The historical data trend for GMO internet'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:4784 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, GMO internet'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.
GMO internet Gross Margin % vs Software Industry
For the Software industry and Technology sector, GMO internet's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GMO internet'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.
GMO internet (TSE:4784) has a Gross Margin % of 33.31% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on GMO internet and its competitors. This is 51% above median its historical median of 22.13. Over the past decade, GMO internet's Gross Margin % has ranged from 17.19 to 45.96. According to the industry distribution chart, GMO internet ranks #1604 out of 2690 companies in the Software industry, placing it in the top 59.6%.
Is GMO internet's Gross Margin % too high?
GMO internet's current Gross Margin % of 33.31% is 51% above median its 10-year median of 22.13. Over the past 10 years, this metric has ranged from a low of 17.19 to a high of 45.96. The Software industry median Gross Margin % is 40.50. GMO internet's value of 33.31% is 17.8% below this industry median. Based on the distribution chart, GMO internet ranks #1604 out of 2690 companies in the Software industry, which is below the industry midpoint. Overall, GMO internet has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GMO internet's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, GMO internet ranks #1604 out of 2690 companies for Gross Margin %. This places GMO internet in the lower half of its industry. The industry median Gross Margin % is 40.50. GMO internet's value of 33.31% is 17.8% below this benchmark. Historically, GMO internet's own Gross Margin % has ranged from 17.19 to 45.96 over the past decade. While the company's 10-year median is 22.13 vs. the industry median of 40.50, GMO internet 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 40.50, based on 2,690 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. GMO internet's current Gross Margin % of 33.31% is 17.8% 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 GMO internet and its competitors. For the Software industry, the median Gross Margin % is 40.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMO internet's current Gross Margin % is 33.31%, which is 51% above median its own 10-year median of 22.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO internet stock overvalued right now?
Based on GuruFocus' analysis, GMO internet (TSE:4784) is currently considered Significantly Overvalued. The stock's GF Value™ is 円159.70, compared to a current price of 円560.00 — trading 250.7% above its estimated fair value. The current Gross Margin % is 33.31%, which is 51% above median its 10-year median of 22.13 and 17.8% below the Software industry median of 40.50. GMO internet's overall GF Score™ is 53/100 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 GMO internet (TSE:4784), the current Gross Margin % is 33.31% 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 GMO internet (TSE:4784) Overvalued in 2026?
Based on GuruFocus' analysis, GMO internet stock appears to be overvalued.
The current stock price of 円560.00 is trading 250.7% above its estimated GF Value™ of 円159.70.
GuruFocus considers GMO internet to be Significantly Overvalued.
Key valuation signals for TSE:4784:
Gross Margin %: 33.31% (51% above median its 10-year median of 22.13)
GF Value™: 円159.70 vs. price of 円560.00 (250.7% above fair value)
Industry Position: 17.8% below the Software median (#1604 of 2690)
No single metric tells the full story. See the TSE:4784 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GMO internet Inc Internet infrastructure business and Internet advertising and media business that includes Domain business, Cloud hosting business, Access (provider) business Media/AdTech Business, Data Technology Business, Agency Business, and Solutions businesses.
53GF Score
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