Zenhoren CoTSE:5845 +1.00%40 Gross Margin % is 69.34% as of Mar. 2026, which is 4% above its 10-year median of 66.86. GuruFocus rates TSE:5845 with a GF Score™ of 40/100 and a GF Value™ of 円886.28 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,007 Business Services companies, Zenhoren Co ranks better than 83.02% on this metric.
The historical rank and industry rank for Zenhoren Co's Gross Margin % or its related term are showing as below:
TSE:5845'
s Gross Margin % Range Over the Past 10 Years
Min: 65.37 Med: 66.86 Max: 70.66
Current: 69.62
During the past 5 years, the highestGross Margin % of Zenhoren Co was 70.66%. The lowest was 65.37%. And the median was 66.86%.
TSE:5845's Gross Margin % is ranked better than 83.02% of 1007
companies
in the Business Services industry
Industry Median: 34.5
vs TSE:5845: 69.62
Zenhoren Co had a gross margin of 69.34% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zenhoren Co was 0.00% per year.
Zenhoren Co (TSE:5845) 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
Zenhoren Co had a gross margin of 69.34% 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.
Zenhoren Co Gross Margin % Related Terms
Zenhoren Co Gross Margin % Historical Data
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The historical data trend for Zenhoren 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:5845 vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, Zenhoren 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.
Zenhoren Co Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Zenhoren Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zenhoren 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.
Zenhoren Co (TSE:5845) has a Gross Margin % of 69.34% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zenhoren Co and its competitors. This is near median its historical median of 66.86. Over the past decade, Zenhoren Co's Gross Margin % has ranged from 65.37 to 70.66. According to the industry distribution chart, Zenhoren Co ranks #171 out of 1007 companies in the Business Services industry, placing it in the top 17%.
Is Zenhoren Co's Gross Margin % too high?
Zenhoren Co's current Gross Margin % of 69.34% is near median its 10-year median of 66.86. Over the past 10 years, this metric has ranged from a low of 65.37 to a high of 70.66. The Business Services industry median Gross Margin % is 34.50. Zenhoren Co's value of 69.34% is 101% above this industry median. Based on the distribution chart, Zenhoren Co ranks #171 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zenhoren Co has a GF Score™ of 40/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenhoren Co's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Zenhoren Co ranks #171 out of 1007 companies for Gross Margin %. This places Zenhoren Co in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.50. Zenhoren Co's value of 69.34% is 101% above this benchmark. Historically, Zenhoren Co's own Gross Margin % has ranged from 65.37 to 70.66 over the past decade. While the company's 10-year median is 66.86 vs. the industry median of 34.50, Zenhoren 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 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. Zenhoren Co's current Gross Margin % of 69.34% is 101% 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 Zenhoren Co and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenhoren Co's current Gross Margin % is 69.34%, which is near median its own 10-year median of 66.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenhoren Co stock overvalued right now?
Based on GuruFocus' analysis, Zenhoren Co (TSE:5845) is currently considered Modestly Overvalued. The stock's GF Value™ is 円886.28, compared to a current price of 円1,011.00 — trading 14.1% above its estimated fair value. The current Gross Margin % is 69.34%, which is near median its 10-year median of 66.86 and 101% above the Business Services industry median of 34.50. Zenhoren Co's overall GF Score™ is 40/100 with 4 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 Zenhoren Co (TSE:5845), the current Gross Margin % is 69.34% 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 Zenhoren Co (TSE:5845) Overvalued in 2026?
Based on GuruFocus' analysis, Zenhoren Co stock appears to be overvalued.
The current stock price of 円1,011.00 is trading 14.1% above its estimated GF Value™ of 円886.28.
GuruFocus considers Zenhoren Co to be Modestly Overvalued.
Key valuation signals for TSE:5845:
Gross Margin %: 69.34% (near median its 10-year median of 66.86)
GF Value™: 円886.28 vs. price of 円1,011.00 (14.1% above fair value)
Industry Position: 101% above the Business Services median (#171 of 1007)
No single metric tells the full story. See the TSE:5845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zenhoren Co Ltd is engaged in the rent liability guarantee business, providing rent guarantee services for residential properties with coverage of up to 24 months rent, including monthly rent, moving-out settlement fees, and tenant accident expense insurance. For business use, the Z-Business NEO service covers stores and offices with guarantees up to 24 months rent. The company also offers guarantees for parking lots and trunk rooms, the Z-value service for combined rent guarantee and fire insurance via smartphone, and Z-WEB/Z-WEB2.0 for centralized management by real estate companies. In addition, Zenhoren provides Z-College Support (tuition guarantee), enabling vocational schools and students to pay tuition fees in installments.
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