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Asakawa Systems Co (TSE:5249) 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
Asakawa Systems Co had a gross margin of 48.37% 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.
Asakawa Systems Co Gross Margin % Related Terms
Asakawa Systems Co Gross Margin % Historical Data
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The historical data trend for Asakawa Systems Co'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.
For the Information Technology Services subindustry, Asakawa Systems 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.
Asakawa Systems Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Asakawa Systems Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Asakawa Systems 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.
Asakawa Systems Co (TSE:5249) has a Gross Margin % of 48.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Asakawa Systems Co and its competitors. This is near median its historical median of 47.05. Over the past decade, Asakawa Systems Co's Gross Margin % has ranged from 32.58 to 51.87.
Is Asakawa Systems Co's Gross Margin % too high?
Asakawa Systems Co's current Gross Margin % of 48.37% is near median its 10-year median of 47.05. Over the past 10 years, this metric has ranged from a low of 32.58 to a high of 51.87. The Software industry median Gross Margin % is 40.07. Asakawa Systems Co's value of 48.37% is 20.7% above this industry median. Overall, Asakawa Systems Co has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Asakawa Systems Co's Gross Margin % compare to ?
Asakawa Systems Co's Gross Margin % of 48.37% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.07. Asakawa Systems Co's value of 48.37% is 20.7% above this benchmark. Historically, Asakawa Systems Co's own Gross Margin % has ranged from 32.58 to 51.87 over the past decade. While the company's 10-year median is 47.05 vs. the industry median of 40.07, Asakawa Systems Co 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 40.07, based on 2,684 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. Asakawa Systems Co's current Gross Margin % of 48.37% is 20.7% 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 Asakawa Systems Co and its competitors. For the Software industry, the median Gross Margin % is 40.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asakawa Systems Co's current Gross Margin % is 48.37%, which is near median its own 10-year median of 47.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asakawa Systems Co stock overvalued right now?
Asakawa Systems Co (TSE:5249) has a current Gross Margin % of 48.37%. The current Gross Margin % is 48.37%, which is near median its 10-year median of 47.05 and 20.7% above the Software industry median of 40.07. Asakawa Systems Co's overall GF Score™ is 26/100 with 1 warning sign 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 Asakawa Systems Co (TSE:5249), the current Gross Margin % is 48.37% 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.
Asakawa Systems Co Ltd is engaged in providing IT solutions such as the development and introduction of core business systems for the construction industry.
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