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Japan Business SystemsTSE:5036 +0.06%77 Gross Margin % is 12.56% as of Mar. 2026, which is 10% above its 10-year median of 11.47. GuruFocus rates TSE:5036 with a GF Score™ of 77/100 and a GF Value™ of 円2,018.53 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,690 Software companies, Japan Business Systems ranks worse than 91.86% on this metric.
Japan Business Systems (TSE:5036) 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
Japan Business Systems had a gross margin of 12.56% 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.
Japan Business Systems Gross Margin % Related Terms
Japan Business Systems Gross Margin % Historical Data
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The historical data trend for Japan Business Systems'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:5036 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Japan Business Systems'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.
Japan Business Systems Gross Margin % vs Software Industry
For the Software industry and Technology sector, Japan Business Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Business Systems'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.
Japan Business Systems (TSE:5036) has a Gross Margin % of 12.56% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Business Systems and its competitors. This is 10% above median its historical median of 11.47. Over the past decade, Japan Business Systems' Gross Margin % has ranged from 9.87 to 12.60. According to the industry distribution chart, Japan Business Systems ranks #2471 out of 2690 companies in the Software industry, placing it in the top 91.9%.
Is Japan Business Systems' Gross Margin % too high?
Japan Business Systems' current Gross Margin % of 12.56% is 10% above median its 10-year median of 11.47. Over the past 10 years, this metric has ranged from a low of 9.87 to a high of 12.60. The Software industry median Gross Margin % is 40.50. Japan Business Systems' value of 12.56% is 69% below this industry median. Based on the distribution chart, Japan Business Systems ranks #2471 out of 2690 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Japan Business Systems has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japan Business Systems' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Japan Business Systems ranks #2471 out of 2690 companies for Gross Margin %. This places Japan Business Systems in the lower half of its industry. The industry median Gross Margin % is 40.50. Japan Business Systems' value of 12.56% is 69% below this benchmark. Historically, Japan Business Systems' own Gross Margin % has ranged from 9.87 to 12.60 over the past decade. While the company's 10-year median is 11.47 vs. the industry median of 40.50, Japan Business Systems 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. Japan Business Systems's current Gross Margin % of 12.56% is 69% 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 Japan Business Systems 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. Japan Business Systems's current Gross Margin % is 12.56%, which is 10% above median its own 10-year median of 11.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Business Systems stock overvalued right now?
Based on GuruFocus' analysis, Japan Business Systems (TSE:5036) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,018.53, compared to a current price of 円1,600.00 — trading 20.7% below its estimated fair value. The current Gross Margin % is 12.56%, which is 10% above median its 10-year median of 11.47 and 69% below the Software industry median of 40.50. Japan Business Systems' overall GF Score™ is 77/100 with 3 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 Japan Business Systems (TSE:5036), the current Gross Margin % is 12.56% 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 Japan Business Systems (TSE:5036) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Business Systems stock appears to be undervalued.
The current stock price of 円1,600.00 is trading 20.7% below its estimated GF Value™ of 円2,018.53.
GuruFocus considers Japan Business Systems to be Modestly Undervalued.
Key valuation signals for TSE:5036:
Gross Margin %: 12.56% (10% above median its 10-year median of 11.47)
GF Value™: 円2,018.53 vs. price of 円1,600.00 (20.7% below fair value)
Industry Position: 69% below the Software median (#2471 of 2690)
No single metric tells the full story. See the TSE:5036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Business Systems Inc operates in the information technology sector. The company works with cloud companies, various hardware and software manufacturers, research institutes and universities, etc., to provide cloud services to its clients. It is a cloud services integrator that provides consulting and IT services that can maximize customer performance by utilizing cloud services centered on Microsoft. The various services offered by the company include digital transformation, cloud infrastructure solutions, SAP system solutions, Microsoft 365 and Power platform-related solutions, and others. Its reportable segments are; Cloud Integration, which derives key revenue, and Cloud Services. Geographically, the company operates in Japan.
77GF Score
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