Prodelight CoTSE:5580 +0.12%53 Gross Margin % is 45.99% as of Feb. 2026, which is 4% below its 10-year median of 47.98. GuruFocus rates TSE:5580 with a GF Score™ of 53/100 and a GF Value™ of 円1,676.42 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,677 Software companies, Prodelight Co ranks better than 57.86% on this metric.
The historical rank and industry rank for Prodelight Co's Gross Margin % or its related term are showing as below:
TSE:5580'
s Gross Margin % Range Over the Past 10 Years
Min: 47.32 Med: 47.98 Max: 48.45
Current: 47.32
During the past 5 years, the highestGross Margin % of Prodelight Co was 48.45%. The lowest was 47.32%. And the median was 47.98%.
TSE:5580's Gross Margin % is ranked better than 57.86% of 2677
companies
in the Software industry
Industry Median: 40.49
vs TSE:5580: 47.32
Prodelight Co had a gross margin of 45.99% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Prodelight Co was 0.00% per year.
Prodelight Co (TSE:5580) 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
Prodelight Co had a gross margin of 45.99% for the quarter that ended in Feb. 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.
Prodelight Co Gross Margin % Related Terms
Prodelight Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Prodelight 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.
TSE:5580 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Prodelight 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.
Prodelight Co Gross Margin % vs Software Industry
For the Software industry and Technology sector, Prodelight Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Prodelight 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.
Prodelight Co (TSE:5580) has a Gross Margin % of 45.99% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Prodelight Co and its competitors. This is near median its historical median of 47.98. Over the past decade, Prodelight Co's Gross Margin % has ranged from 47.32 to 48.45. According to the industry distribution chart, Prodelight Co ranks #1128 out of 2677 companies in the Software industry, placing it in the top 42.1%.
Is Prodelight Co's Gross Margin % too high?
Prodelight Co's current Gross Margin % of 45.99% is near median its 10-year median of 47.98. Over the past 10 years, this metric has ranged from a low of 47.32 to a high of 48.45. The Software industry median Gross Margin % is 40.49. Prodelight Co's value of 45.99% is 13.6% above this industry median. Based on the distribution chart, Prodelight Co ranks #1128 out of 2677 companies in the Software industry, which is above the industry midpoint. Overall, Prodelight Co has a GF Score™ of 53/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Prodelight Co's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Prodelight Co ranks #1128 out of 2677 companies for Gross Margin %. This puts Prodelight Co in the upper half of its industry. The industry median Gross Margin % is 40.49. Prodelight Co's value of 45.99% is 13.6% above this benchmark. Historically, Prodelight Co's own Gross Margin % has ranged from 47.32 to 48.45 over the past decade. While the company's 10-year median is 47.98 vs. the industry median of 40.49, Prodelight 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 40.49, based on 2,677 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. Prodelight Co's current Gross Margin % of 45.99% is 13.6% 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 Prodelight Co 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. Prodelight Co's current Gross Margin % is 45.99%, which is near median its own 10-year median of 47.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prodelight Co stock overvalued right now?
Based on GuruFocus' analysis, Prodelight Co (TSE:5580) is currently considered Fairly Valued. The stock's GF Value™ is 円1,676.42, compared to a current price of 円1,700.00 — trading 1.4% above its estimated fair value. The current Gross Margin % is 45.99%, which is near median its 10-year median of 47.98 and 13.6% above the Software industry median of 40.49. Prodelight Co'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 Prodelight Co (TSE:5580), the current Gross Margin % is 45.99% as of Feb. 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 Prodelight Co (TSE:5580) Overvalued in 2026?
Based on GuruFocus' analysis, Prodelight Co stock appears to be overvalued.
The current stock price of 円1,700.00 is trading 1.4% above its estimated GF Value™ of 円1,676.42.
GuruFocus considers Prodelight Co to be Fairly Valued.
Key valuation signals for TSE:5580:
Gross Margin %: 45.99% (near median its 10-year median of 47.98)
GF Value™: 円1,676.42 vs. price of 円1,700.00 (1.4% above fair value)
Industry Position: 13.6% above the Software median (#1128 of 2677)
No single metric tells the full story. See the TSE:5580 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prodelight Co Ltd is engaged in the Voice solution business, Planning, development, and sales of cloud voice systems, Sale of line services, and Sale of audio devices. The company provides a one-stop solution to voice communication DX, based on a self-developed cloud PBX for IP telephone, INNOVERA.
53GF Score
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