Laboro AITSE:5586 +2.75%52 Gross Margin % is 66.34% as of Mar. 2026, which is 1% below its 10-year median of 67.05. GuruFocus rates TSE:5586 with a GF Score™ of 52/100 and a GF Value™ of 円1,521.98 (Significantly Undervalued). Among 2,677 Software companies, Laboro AI ranks better than 75.38% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Laboro AI's Gross Profit for the
six
months ended in Mar. 2026 was 円880 Mil. Laboro AI's Revenue for the
six
months ended in Mar. 2026 was 円1,326 Mil. Therefore, Laboro AI's Gross Margin % for the quarter that ended in Mar. 2026 was 66.34%.
The historical rank and industry rank for Laboro AI's Gross Margin % or its related term are showing as below:
TSE:5586'
s Gross Margin % Range Over the Past 10 Years
Min: 64.86 Med: 67.05 Max: 71.81
Current: 65.5
During the past 5 years, the highestGross Margin % of Laboro AI was 71.81%. The lowest was 64.86%. And the median was 67.05%.
TSE:5586's Gross Margin % is ranked better than 75.38% of 2677
companies
in the Software industry
Industry Median: 40.49
vs TSE:5586: 65.50
Laboro AI had a gross margin of 66.34% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Laboro AI was 0.00% per year.
Laboro AI (TSE:5586) 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
Laboro AI had a gross margin of 66.34% 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.
Laboro AI Gross Margin % Related Terms
Laboro AI Gross Margin % Historical Data
* Premium members only.
The historical data trend for Laboro AI'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:5586 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Laboro AI'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.
Laboro AI Gross Margin % vs Software Industry
For the Software industry and Technology sector, Laboro AI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Laboro AI'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.
Laboro AI (TSE:5586) has a Gross Margin % of 66.34% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Laboro AI and its competitors. This is near median its historical median of 67.05. Over the past decade, Laboro AI's Gross Margin % has ranged from 64.86 to 71.81. According to the industry distribution chart, Laboro AI ranks #659 out of 2677 companies in the Software industry, placing it in the top 24.6%.
Is Laboro AI's Gross Margin % too high?
Laboro AI's current Gross Margin % of 66.34% is near median its 10-year median of 67.05. Over the past 10 years, this metric has ranged from a low of 64.86 to a high of 71.81. The Software industry median Gross Margin % is 40.49. Laboro AI's value of 66.34% is 63.8% above this industry median. Based on the distribution chart, Laboro AI ranks #659 out of 2677 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Laboro AI has a GF Score™ of 52/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Laboro AI's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Laboro AI ranks #659 out of 2677 companies for Gross Margin %. This places Laboro AI in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.49. Laboro AI's value of 66.34% is 63.8% above this benchmark. Historically, Laboro AI's own Gross Margin % has ranged from 64.86 to 71.81 over the past decade. While the company's 10-year median is 67.05 vs. the industry median of 40.49, Laboro AI 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. Laboro AI's current Gross Margin % of 66.34% is 63.8% 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 Laboro AI 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. Laboro AI's current Gross Margin % is 66.34%, which is near median its own 10-year median of 67.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laboro AI stock overvalued right now?
Based on GuruFocus' analysis, Laboro AI (TSE:5586) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,521.98, compared to a current price of 円859.00 — trading 43.6% below its estimated fair value. The current Gross Margin % is 66.34%, which is near median its 10-year median of 67.05 and 63.8% above the Software industry median of 40.49. Laboro AI's overall GF Score™ is 52/100. 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 Laboro AI (TSE:5586), the current Gross Margin % is 66.34% 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 Laboro AI (TSE:5586) Overvalued in 2026?
Based on GuruFocus' analysis, Laboro AI stock appears to be undervalued.
The current stock price of 円859.00 is trading 43.6% below its estimated GF Value™ of 円1,521.98.
GuruFocus considers Laboro AI to be Significantly Undervalued.
Key valuation signals for TSE:5586:
Gross Margin %: 66.34% (near median its 10-year median of 67.05)
GF Value™: 円1,521.98 vs. price of 円859.00 (43.6% below fair value)
Industry Position: 63.8% above the Software median (#659 of 2677)
No single metric tells the full story. See the TSE:5586 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laboro AI Inc is a Provider of developing business solutions using artificial intelligence technology intended to connect technology and business. The company also provides consulting services related to the utilization of artificial intelligence, which include planning, introduction, and execution support for AI utilization.
52GF Score
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