And FactoryTSE:7035 +0.41%59 Gross Margin % is 45.37% as of Feb. 2026, which is 16% below its 10-year median of 54.15. GuruFocus rates TSE:7035 with a GF Score™ of 59/100 and a GF Value™ of 円209.89 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,677 Software companies, And Factory ranks better than 52.6% on this metric.
And Factory Inc gross margin has been in long-term decline. The average rate of decline per year is -8.4%.
The historical rank and industry rank for And Factory's Gross Margin % or its related term are showing as below:
TSE:7035'
s Gross Margin % Range Over the Past 10 Years
Min: 27.7 Med: 54.15 Max: 73.51
Current: 42.89
During the past 10 years, the highestGross Margin % of And Factory was 73.51%. The lowest was 27.70%. And the median was 54.15%.
TSE:7035's Gross Margin % is ranked better than 52.6% of 2677
companies
in the Software industry
Industry Median: 40.49
vs TSE:7035: 42.89
And Factory had a gross margin of 45.37% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for And Factory was -8.40% per year.
And Factory (TSE:7035) 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
And Factory had a gross margin of 45.37% for the quarter that ended in Feb. 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.
And Factory Gross Margin % Related Terms
And Factory Gross Margin % Historical Data
* Premium members only.
The historical data trend for And Factory'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:7035 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, And Factory'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.
And Factory Gross Margin % vs Software Industry
For the Software industry and Technology sector, And Factory's Gross Margin % distribution charts can be found below:
* The bar in red indicates where And Factory'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.
And Factory (TSE:7035) has a Gross Margin % of 45.37% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on And Factory and its competitors. This is 16% below median its historical median of 54.15. Over the past decade, And Factory's Gross Margin % has ranged from 27.70 to 73.51. According to the industry distribution chart, And Factory ranks #1269 out of 2677 companies in the Software industry, placing it in the top 47.4%.
Is And Factory's Gross Margin % too high?
And Factory's current Gross Margin % of 45.37% is 16% below median its 10-year median of 54.15. Over the past 10 years, this metric has ranged from a low of 27.70 to a high of 73.51. The Software industry median Gross Margin % is 40.49. And Factory's value of 45.37% is 12.1% above this industry median. Based on the distribution chart, And Factory ranks #1269 out of 2677 companies in the Software industry, which is above the industry midpoint. Overall, And Factory has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does And Factory's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, And Factory ranks #1269 out of 2677 companies for Gross Margin %. This puts And Factory in the upper half of its industry. The industry median Gross Margin % is 40.49. And Factory's value of 45.37% is 12.1% above this benchmark. Historically, And Factory's own Gross Margin % has ranged from 27.70 to 73.51 over the past decade. While the company's 10-year median is 54.15 vs. the industry median of 40.49, And Factory 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. And Factory's current Gross Margin % of 45.37% is 12.1% 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 And Factory 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. And Factory's current Gross Margin % is 45.37%, which is 16% below median its own 10-year median of 54.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is And Factory stock overvalued right now?
Based on GuruFocus' analysis, And Factory (TSE:7035) is currently considered Modestly Overvalued. The stock's GF Value™ is 円209.89, compared to a current price of 円245.00 — trading 16.7% above its estimated fair value. The current Gross Margin % is 45.37%, which is 16% below median its 10-year median of 54.15 and 12.1% above the Software industry median of 40.49. And Factory's overall GF Score™ is 59/100 with 7 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 And Factory (TSE:7035), the current Gross Margin % is 45.37% as of Feb. 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 And Factory (TSE:7035) Overvalued in 2026?
Based on GuruFocus' analysis, And Factory stock appears to be overvalued.
The current stock price of 円245.00 is trading 16.7% above its estimated GF Value™ of 円209.89.
GuruFocus considers And Factory to be Modestly Overvalued.
Key valuation signals for TSE:7035:
Gross Margin %: 45.37% (16% below median its 10-year median of 54.15)
GF Value™: 円209.89 vs. price of 円245.00 (16.7% above fair value)
Industry Position: 12.1% above the Software median (#1269 of 2677)
No single metric tells the full story. See the TSE:7035 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
And Factory Inc is a Japan-based software company. Its business activities are divided into two divisions including smartphone app and Internet of Things (IoT) business division. The company is engaged in developing various applications that connect users and services. It mainly develops tool-based applications, game strategy bulletin board applications, and manga applications.
59GF Score
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