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CirclaceTSE:5029 +6.40%64 Gross Margin % is 42.48% as of Mar. 2026, which is 14% below its 10-year median of 49.68. GuruFocus rates TSE:5029 with a GF Score™ of 64/100 and a GF Value™ of 円1,084.62 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,685 Software companies, Circlace ranks better than 53.11% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Circlace's Gross Profit for the
six
months ended in Mar. 2026 was 円1,039 Mil. Circlace's Revenue for the
six
months ended in Mar. 2026 was 円2,446 Mil. Therefore, Circlace's Gross Margin % for the quarter that ended in Mar. 2026 was 42.48%.
Warning Sign:
Circlace Inc gross margin has been in long-term decline. The average rate of decline per year is -3.2%.
The historical rank and industry rank for Circlace's Gross Margin % or its related term are showing as below:
TSE:5029'
s Gross Margin % Range Over the Past 10 Years
Min: 43.34 Med: 49.68 Max: 53.87
Current: 43.34
During the past 7 years, the highestGross Margin % of Circlace was 53.87%. The lowest was 43.34%. And the median was 49.68%.
TSE:5029's Gross Margin % is ranked better than 53.11% of 2685
companies
in the Software industry
Industry Median: 40.49
vs TSE:5029: 43.34
Circlace had a gross margin of 42.48% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Circlace was -3.20% per year.
Circlace (TSE:5029) 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
Circlace had a gross margin of 42.48% for the quarter that ended in Mar. 2026 => Durable 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.
Circlace Gross Margin % Related Terms
Circlace Gross Margin % Historical Data
* Premium members only.
The historical data trend for Circlace'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:5029 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Circlace'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.
Circlace Gross Margin % vs Software Industry
For the Software industry and Technology sector, Circlace's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Circlace'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.
Circlace (TSE:5029) has a Gross Margin % of 42.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Circlace and its competitors. This is 14% below median its historical median of 49.68. Over the past decade, Circlace's Gross Margin % has ranged from 43.34 to 53.87. According to the industry distribution chart, Circlace ranks #1259 out of 2685 companies in the Software industry, placing it in the top 46.9%.
Is Circlace's Gross Margin % too high?
Circlace's current Gross Margin % of 42.48% is 14% below median its 10-year median of 49.68. Over the past 10 years, this metric has ranged from a low of 43.34 to a high of 53.87. The Software industry median Gross Margin % is 40.49. Circlace's value of 42.48% is 4.9% above this industry median. Based on the distribution chart, Circlace ranks #1259 out of 2685 companies in the Software industry, which is above the industry midpoint. Overall, Circlace has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Circlace's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Circlace ranks #1259 out of 2685 companies for Gross Margin %. This puts Circlace in the upper half of its industry. The industry median Gross Margin % is 40.49. Circlace's value of 42.48% is 4.9% above this benchmark. Historically, Circlace's own Gross Margin % has ranged from 43.34 to 53.87 over the past decade. While the company's 10-year median is 49.68 vs. the industry median of 40.49, Circlace has consistently been above 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 40.49, based on 2,685 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. Circlace's current Gross Margin % of 42.48% is 4.9% above 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 Circlace and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Circlace's current Gross Margin % is 42.48%, which is 14% below median its own 10-year median of 49.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Circlace stock overvalued right now?
Based on GuruFocus' analysis, Circlace (TSE:5029) is currently considered Possible Value Trap. The stock's GF Value™ is 円1,084.62, compared to a current price of 円748.00 — trading 31% below its estimated fair value. The current Gross Margin % is 42.48%, which is 14% below median its 10-year median of 49.68 and 4.9% above the Software industry median of 40.49. Circlace's overall GF Score™ is 64/100 with 6 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 Circlace (TSE:5029), the current Gross Margin % is 42.48% 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 Circlace (TSE:5029) Overvalued in 2026?
Based on GuruFocus' analysis, Circlace stock appears to be undervalued.
The current stock price of 円748.00 is trading 31% below its estimated GF Value™ of 円1,084.62.
GuruFocus considers Circlace to be Possible Value Trap.
Key valuation signals for TSE:5029:
Gross Margin %: 42.48% (14% below median its 10-year median of 49.68)
GF Value™: 円1,084.62 vs. price of 円748.00 (31% below fair value)
Industry Position: 4.9% above the Software median (#1259 of 2685)
No single metric tells the full story. See the TSE:5029 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Circlace Inc is engaged in multiple businesses that promote corporate digital transformation by utilizing IT technologies, such as Salesforce, Anaplan, ServiceNow, AWS, and Microsoft, and the development of its own SaaS cloud service AGAVE. The company's reportable segments are the Consulting business and the AoraNow business. The majority of its revenue is generated from the Consulting business, which provides comprehensive support to client companies in areas such as business design, system construction, data utilization, organizational reform, and human resource development through the introduction and utilization of cloud technologies such as Salesforce, Anaplan, AGAVE, AWS, and Microsoft. The AoraNow business supports the introduction and operation of ServiceNow.
64GF Score
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