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M D BTSE:5594 14 Gross Margin % is 19.15% as of Oct. 2025, which is 14% above its 10-year median of 16.86. GuruFocus rates TSE:5594 with a GF Score™ of 14/100. The stock has 1 warning sign investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. M D B's Gross Profit for the
six
months ended in Oct. 2025 was 円216 Mil. M D B's Revenue for the
six
months ended in Oct. 2025 was 円1,125 Mil. Therefore, M D B's Gross Margin % for the quarter that ended in Oct. 2025 was 19.15%.
The historical rank and industry rank for M D B's Gross Margin % or its related term are showing as below:
TSE:5594'
s Gross Margin % Range Over the Past 10 Years
Min: 16.02 Med: 16.86 Max: 20.13
Current: 19.52
During the past 4 years, the highestGross Margin % of M D B was 20.13%. The lowest was 16.02%. And the median was 16.86%.
TSE:5594's Gross Margin % is not ranked
in the Software industry.
Industry Median: 40.685
vs TSE:5594: 19.52
M D B had a gross margin of 19.15% for the quarter that ended in Oct. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for M D B was 0.00% per year.
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
M D B had a gross margin of 19.15% for the quarter that ended in Oct. 2025 => 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.
M D B Gross Margin % Related Terms
M D B Gross Margin % Historical Data
* Premium members only.
The historical data trend for M D B'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, M D B'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.
M D B Gross Margin % vs Software Industry
For the Software industry and Technology sector, M D B's Gross Margin % distribution charts can be found below:
* The bar in red indicates where M D B'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.
M D B (TSE:5594) has a Gross Margin % of 19.15% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on M D B and its competitors. This is 14% above median its historical median of 16.86. Over the past decade, M D B's Gross Margin % has ranged from 16.02 to 20.13.
Is M D B's Gross Margin % too high?
M D B's current Gross Margin % of 19.15% is 14% above median its 10-year median of 16.86. Over the past 10 years, this metric has ranged from a low of 16.02 to a high of 20.13. The Software industry median Gross Margin % is 40.69. M D B's value of 19.15% is 52.9% below this industry median. Overall, M D B has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does M D B's Gross Margin % compare to ?
M D B's Gross Margin % of 19.15% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.69. M D B's value of 19.15% is 52.9% below this benchmark. Historically, M D B's own Gross Margin % has ranged from 16.02 to 20.13 over the past decade. While the company's 10-year median is 16.86 vs. the industry median of 40.69, M D B 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 40.69, 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. M D B's current Gross Margin % of 19.15% is 52.9% 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 M D B and its competitors. For the Software industry, the median Gross Margin % is 40.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. M D B's current Gross Margin % is 19.15%, which is 14% above median its own 10-year median of 16.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is M D B stock overvalued right now?
M D B (TSE:5594) has a current Gross Margin % of 19.15%. The current Gross Margin % is 19.15%, which is 14% above median its 10-year median of 16.86 and 52.9% below the Software industry median of 40.69. M D B's overall GF Score™ is 14/100 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 M D B (TSE:5594), the current Gross Margin % is 19.15% as of Oct. 2025. 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.
M D B Corp is a Japan-based company engaged in the information solution business. The company provides system integration services, which include System design, development, implementation support, maintenance work, quasi-agency contract/dispatch contract, Web creation & maintenance work, and Server design & maintenance work. The company is also engaged in Digital content services, which provide Image analysis services, map creation services, and various content contract work.
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