TDSETSE:7046 -1.89%80 Gross Margin % is 38.61% as of Mar. 2026, which is 2% above its 10-year median of 37.85. GuruFocus rates TSE:7046 with a GF Score™ of 80/100 and a GF Value™ of 円1,816.29 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,685 Software companies, TDSE ranks worse than 54.56% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. TDSE's Gross Profit for the
six
months ended in Mar. 2026 was 円614 Mil. TDSE's Revenue for the
six
months ended in Mar. 2026 was 円1,590 Mil. Therefore, TDSE's Gross Margin % for the quarter that ended in Mar. 2026 was 38.61%.
The historical rank and industry rank for TDSE's Gross Margin % or its related term are showing as below:
TSE:7046'
s Gross Margin % Range Over the Past 10 Years
Min: 34.27 Med: 37.85 Max: 43.32
Current: 36.75
During the past 10 years, the highestGross Margin % of TDSE was 43.32%. The lowest was 34.27%. And the median was 37.85%.
TSE:7046's Gross Margin % is ranked worse than 54.56% of 2685
companies
in the Software industry
Industry Median: 40.49
vs TSE:7046: 36.75
TDSE had a gross margin of 38.61% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for TDSE was -1.00% per year.
TDSE (TSE:7046) 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
TDSE had a gross margin of 38.61% for the quarter that ended in Mar. 2026 => 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.
TDSE Gross Margin % Related Terms
TDSE Gross Margin % Historical Data
* Premium members only.
The historical data trend for TDSE'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:7046 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, TDSE'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.
TDSE Gross Margin % vs Software Industry
For the Software industry and Technology sector, TDSE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TDSE'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.
TDSE (TSE:7046) has a Gross Margin % of 38.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TDSE and its competitors. This is near median its historical median of 37.85. Over the past decade, TDSE's Gross Margin % has ranged from 34.27 to 43.32. According to the industry distribution chart, TDSE ranks #1465 out of 2685 companies in the Software industry, placing it in the top 54.6%.
Is TDSE's Gross Margin % too high?
TDSE's current Gross Margin % of 38.61% is near median its 10-year median of 37.85. Over the past 10 years, this metric has ranged from a low of 34.27 to a high of 43.32. The Software industry median Gross Margin % is 40.49. TDSE's value of 38.61% is 4.6% below this industry median. Based on the distribution chart, TDSE ranks #1465 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, TDSE has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TDSE's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, TDSE ranks #1465 out of 2685 companies for Gross Margin %. This places TDSE in the lower half of its industry. The industry median Gross Margin % is 40.49. TDSE's value of 38.61% is 4.6% below this benchmark. Historically, TDSE's own Gross Margin % has ranged from 34.27 to 43.32 over the past decade. While the company's 10-year median is 37.85 vs. the industry median of 40.49, TDSE 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 40.49, based on 2,685 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. TDSE's current Gross Margin % of 38.61% is 4.6% 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 TDSE 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. TDSE's current Gross Margin % is 38.61%, which is near median its own 10-year median of 37.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TDSE stock overvalued right now?
Based on GuruFocus' analysis, TDSE (TSE:7046) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,816.29, compared to a current price of 円1,350.00 — trading 25.7% below its estimated fair value. The current Gross Margin % is 38.61%, which is near median its 10-year median of 37.85 and 4.6% below the Software industry median of 40.49. TDSE's overall GF Score™ is 80/100 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 TDSE (TSE:7046), the current Gross Margin % is 38.61% 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 TDSE (TSE:7046) Overvalued in 2026?
Based on GuruFocus' analysis, TDSE stock appears to be undervalued.
The current stock price of 円1,350.00 is trading 25.7% below its estimated GF Value™ of 円1,816.29.
GuruFocus considers TDSE to be Modestly Undervalued.
Key valuation signals for TSE:7046:
Gross Margin %: 38.61% (near median its 10-year median of 37.85)
GF Value™: 円1,816.29 vs. price of 円1,350.00 (25.7% below fair value)
Industry Position: 4.6% below the Software median (#1465 of 2685)
No single metric tells the full story. See the TSE:7046 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TDSE Inc is engaged in providing solutions utilizing big data and artificial intelligence (AI), and offers a range of AI products, including AI modules.
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