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
CGS Holdings had a gross margin of N/A% for the quarter that ended in Dec. 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.
CGS Holdings Gross Margin % Related Terms
CGS Holdings Gross Margin % Historical Data
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The historical data trend for CGS Holdings'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:6633 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, CGS Holdings'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.
CGS Holdings Gross Margin % vs Software Industry
For the Software industry and Technology sector, CGS Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CGS Holdings'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.
CGS Holdings (TSE:6633) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on CGS Holdings and its competitors. Over the past decade, CGS Holdings' Gross Margin % has ranged from 59.60 to 66.05. According to the industry distribution chart, CGS Holdings ranks #733 out of 2681 companies in the Software industry, placing it in the top 27.3%.
Is CGS Holdings' Gross Margin % too high?
CGS Holdings' current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 59.60 to a high of 66.05. Based on the distribution chart, CGS Holdings ranks #733 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, CGS Holdings has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CGS Holdings' Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, CGS Holdings ranks #733 out of 2681 companies for Gross Margin %. This puts CGS Holdings in the upper half of its industry. The industry median Gross Margin % is 40.41. Historically, CGS Holdings' own Gross Margin % has ranged from 59.60 to 66.05 over the past decade. 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 40.41, based on 2,681 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. 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 CGS Holdings and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CGS Holdings's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CGS Holdings stock overvalued right now?
Based on GuruFocus' analysis, CGS Holdings (TSE:6633) is currently considered Modestly Undervalued. The stock's GF Value™ is 円410.83, compared to a current price of 円332.00 — trading 19.2% below its estimated fair value. The current Gross Margin % is 0.00%. CGS Holdings' overall GF Score™ is 75/100 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 CGS Holdings (TSE:6633), the current Gross Margin % is 0.00% 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 CGS Holdings (TSE:6633) Overvalued in 2026?
Based on GuruFocus' analysis, CGS Holdings stock appears to be undervalued.
The current stock price of 円332.00 is trading 19.2% below its estimated GF Value™ of 円410.83.
GuruFocus considers CGS Holdings to be Modestly Undervalued.
Key valuation signals for TSE:6633:
Gross Margin %: 0.00%
GF Value™: 円410.83 vs. price of 円332.00 (19.2% below fair value)
No single metric tells the full story. See the TSE:6633 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CGS Holdings Inc formerly C&G Systems Inc is engaged in the development, sales, and support of mold CAD, CAM system, and production management system. The products of the company include EXCESS HYBRID, CAM TOOL, CG series, and AIQ.
75GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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