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SmartDriveTSE:5137 -2.36%65 Gross Margin % is 62.44% as of Mar. 2026, which is 3% below its 10-year median of 64.49. GuruFocus rates TSE:5137 with a GF Score™ of 65/100 and a GF Value™ of 円569.95 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,691 Software companies, SmartDrive ranks better than 73.28% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SmartDrive's Gross Profit for the
three
months ended in Mar. 2026 was 円534 Mil. SmartDrive's Revenue for the
three
months ended in Mar. 2026 was 円855 Mil. Therefore, SmartDrive's Gross Margin % for the quarter that ended in Mar. 2026 was 62.44%.
Warning Sign:
SmartDrive inc gross margin has been in long-term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for SmartDrive's Gross Margin % or its related term are showing as below:
TSE:5137'
s Gross Margin % Range Over the Past 10 Years
Min: 60.88 Med: 64.49 Max: 69.19
Current: 63.14
During the past 6 years, the highestGross Margin % of SmartDrive was 69.19%. The lowest was 60.88%. And the median was 64.49%.
TSE:5137's Gross Margin % is ranked better than 73.28% of 2691
companies
in the Software industry
Industry Median: 40.57
vs TSE:5137: 63.14
SmartDrive had a gross margin of 62.44% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SmartDrive was -2.00% per year.
SmartDrive (TSE:5137) 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
SmartDrive had a gross margin of 62.44% 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.
SmartDrive Gross Margin % Related Terms
SmartDrive Gross Margin % Historical Data
* Premium members only.
The historical data trend for SmartDrive'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:5137 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, SmartDrive'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.
SmartDrive Gross Margin % vs Software Industry
For the Software industry and Technology sector, SmartDrive's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SmartDrive'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.
SmartDrive (TSE:5137) has a Gross Margin % of 62.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SmartDrive and its competitors. This is near median its historical median of 64.49. Over the past decade, SmartDrive's Gross Margin % has ranged from 60.88 to 69.19. According to the industry distribution chart, SmartDrive ranks #719 out of 2691 companies in the Software industry, placing it in the top 26.7%.
Is SmartDrive's Gross Margin % too high?
SmartDrive's current Gross Margin % of 62.44% is near median its 10-year median of 64.49. Over the past 10 years, this metric has ranged from a low of 60.88 to a high of 69.19. The Software industry median Gross Margin % is 40.57. SmartDrive's value of 62.44% is 53.9% above this industry median. Based on the distribution chart, SmartDrive ranks #719 out of 2691 companies in the Software industry, which is above the industry midpoint. Overall, SmartDrive has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SmartDrive's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, SmartDrive ranks #719 out of 2691 companies for Gross Margin %. This puts SmartDrive in the upper half of its industry. The industry median Gross Margin % is 40.57. SmartDrive's value of 62.44% is 53.9% above this benchmark. Historically, SmartDrive's own Gross Margin % has ranged from 60.88 to 69.19 over the past decade. While the company's 10-year median is 64.49 vs. the industry median of 40.57, SmartDrive 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 40.57, based on 2,691 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. SmartDrive's current Gross Margin % of 62.44% is 53.9% 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 SmartDrive and its competitors. For the Software industry, the median Gross Margin % is 40.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SmartDrive's current Gross Margin % is 62.44%, which is near median its own 10-year median of 64.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SmartDrive stock overvalued right now?
Based on GuruFocus' analysis, SmartDrive (TSE:5137) is currently considered Significantly Undervalued. The stock's GF Value™ is 円569.95, compared to a current price of 円207.00 — trading 63.7% below its estimated fair value. The current Gross Margin % is 62.44%, which is near median its 10-year median of 64.49 and 53.9% above the Software industry median of 40.57. SmartDrive's overall GF Score™ is 65/100 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 SmartDrive (TSE:5137), the current Gross Margin % is 62.44% 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 SmartDrive (TSE:5137) Overvalued in 2026?
Based on GuruFocus' analysis, SmartDrive stock appears to be undervalued.
The current stock price of 円207.00 is trading 63.7% below its estimated GF Value™ of 円569.95.
GuruFocus considers SmartDrive to be Significantly Undervalued.
Key valuation signals for TSE:5137:
Gross Margin %: 62.44% (near median its 10-year median of 64.49)
GF Value™: 円569.95 vs. price of 円207.00 (63.7% below fair value)
Industry Position: 53.9% above the Software median (#719 of 2691)
No single metric tells the full story. See the TSE:5137 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SmartDrive inc is engaged in the development and provision of hardware, applications, telematics services, etc., and data collection and analysis for the mobility sector. It is promoting mobility data, GPS data (latitude and longitude, GPS speed, GPS accuracy), acceleration, and other technologies both in Japan and overseas. The group mainly operates the following businesses: Domestic Fleet Operator (DX) for companies that utilize cars, Domestic AO (DX) in the automotive industry, and Overseas Mobility DX Business. It offers cloud-based vehicle management systems, digital transformation (DX) services for vehicle-related operations, and a mobile data platform to analyze the data obtained from various devices such as dashcams and GPS trackers, and use it for various mobility services.
65GF Score
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