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LTSTSE:6560 +1.63%78 Gross Margin % is 37.65% as of Dec. 2025, which is 4% above its 10-year median of 36.23. GuruFocus rates TSE:6560 with a GF Score™ of 78/100 and a GF Value™ of 円3,157.52 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,007 Business Services companies, LTS ranks better than 50.25% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. LTS's Gross Profit for the
three
months ended in Dec. 2025 was 円1,589 Mil. LTS's Revenue for the
three
months ended in Dec. 2025 was 円4,220 Mil. Therefore, LTS's Gross Margin % for the quarter that ended in Dec. 2025 was 37.65%.
The historical rank and industry rank for LTS's Gross Margin % or its related term are showing as below:
TSE:6560'
s Gross Margin % Range Over the Past 10 Years
Min: 33.35 Med: 36.23 Max: 41.93
Current: 34.8
During the past 11 years, the highestGross Margin % of LTS was 41.93%. The lowest was 33.35%. And the median was 36.23%.
TSE:6560's Gross Margin % is ranked better than 50.25% of 1007
companies
in the Business Services industry
Industry Median: 34.53
vs TSE:6560: 34.80
LTS had a gross margin of 37.65% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for LTS was -0.40% per year.
LTS (TSE:6560) 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
LTS had a gross margin of 37.65% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
LTS Gross Margin % Related Terms
LTS Gross Margin % Historical Data
* Premium members only.
The historical data trend for LTS'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:6560 vs VRSK, EFX, BAH: Gross Margin % Comparison
For the Consulting Services subindustry, LTS'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.
LTS Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, LTS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LTS'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.
LTS (TSE:6560) has a Gross Margin % of 37.65% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on LTS and its competitors. This is near median its historical median of 36.23. Over the past decade, LTS's Gross Margin % has ranged from 33.35 to 41.93. According to the industry distribution chart, LTS ranks #501 out of 1007 companies in the Business Services industry, placing it in the top 49.8%.
Is LTS's Gross Margin % too high?
LTS's current Gross Margin % of 37.65% is near median its 10-year median of 36.23. Over the past 10 years, this metric has ranged from a low of 33.35 to a high of 41.93. The Business Services industry median Gross Margin % is 34.53. LTS's value of 37.65% is 9% above this industry median. Based on the distribution chart, LTS ranks #501 out of 1007 companies in the Business Services industry, which is above the industry midpoint. Overall, LTS has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LTS's Gross Margin % compare to VRSK and EFX?
According to the Business Services industry distribution chart, LTS ranks #501 out of 1007 companies for Gross Margin %. This puts LTS in the upper half of its industry. The industry median Gross Margin % is 34.53. LTS's value of 37.65% is 9% above this benchmark. Historically, LTS's own Gross Margin % has ranged from 33.35 to 41.93 over the past decade. While the company's 10-year median is 36.23 vs. the industry median of 34.53, LTS 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 34.53, 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. LTS's current Gross Margin % of 37.65% is 9% 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 LTS and its competitors. For the Business Services industry, the median Gross Margin % is 34.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LTS's current Gross Margin % is 37.65%, which is near median its own 10-year median of 36.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LTS stock overvalued right now?
Based on GuruFocus' analysis, LTS (TSE:6560) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,157.52, compared to a current price of 円1,811.00 — trading 42.6% below its estimated fair value. The current Gross Margin % is 37.65%, which is near median its 10-year median of 36.23 and 9% above the Business Services industry median of 34.53. LTS's overall GF Score™ is 78/100 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 LTS (TSE:6560), the current Gross Margin % is 37.65% as of Dec. 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.
Is LTS (TSE:6560) Overvalued in 2026?
Based on GuruFocus' analysis, LTS stock appears to be undervalued.
The current stock price of 円1,811.00 is trading 42.6% below its estimated GF Value™ of 円3,157.52.
GuruFocus considers LTS to be Significantly Undervalued.
Key valuation signals for TSE:6560:
Gross Margin %: 37.65% (near median its 10-year median of 36.23)
GF Value™: 円3,157.52 vs. price of 円1,811.00 (42.6% below fair value)
Industry Position: 9% above the Business Services median (#501 of 1007)
No single metric tells the full story. See the TSE:6560 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LTS Inc is engaged in the provision of services that transform and grow the businesses of its clients through capabilities and track record in business process management, a core methodology for supporting the implementation of transformation that is essential for corporate growth. The company is developing the Service Business and Platform Business. The Services business provides services to help clients establish operational transformations associated with introducing large-scale IT systems at their workplaces by implementing education and communication promotion measures to encourage changes in awareness and behavior at workplaces.
78GF Score
Get the complete analysis for TSE:6560
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