Japan Investment Adviser Co (TSE:7172) 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
Japan Investment Adviser Co had a gross margin of 75.51% for the quarter that ended in Dec. 2025 => 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.
Japan Investment Adviser Co Gross Margin % Related Terms
Japan Investment Adviser Co Gross Margin % Historical Data
* 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:7172 vs URI, SUNB, AER: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, Japan Investment Adviser 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.
Japan Investment Adviser Co Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Japan Investment Adviser Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Investment Adviser 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.
Japan Investment Adviser Co (TSE:7172) has a Gross Margin % of 75.51% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Investment Adviser Co and its competitors. This is 15% above median its historical median of 65.44. Over the past decade, Japan Investment Adviser Co's Gross Margin % has ranged from 38.94 to 77.06. According to the industry distribution chart, Japan Investment Adviser Co ranks #133 out of 1006 companies in the Business Services industry, placing it in the top 13.2%.
Is Japan Investment Adviser Co's Gross Margin % too high?
Japan Investment Adviser Co's current Gross Margin % of 75.51% is 15% above median its 10-year median of 65.44. Over the past 10 years, this metric has ranged from a low of 38.94 to a high of 77.06. The Business Services industry median Gross Margin % is 34.46. Japan Investment Adviser Co's value of 75.51% is 119.1% above this industry median. Based on the distribution chart, Japan Investment Adviser Co ranks #133 out of 1006 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Investment Adviser Co has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Investment Adviser Co's Gross Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Japan Investment Adviser Co ranks #133 out of 1006 companies for Gross Margin %. This places Japan Investment Adviser Co in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.46. Japan Investment Adviser Co's value of 75.51% is 119.1% above this benchmark. Historically, Japan Investment Adviser Co's own Gross Margin % has ranged from 38.94 to 77.06 over the past decade. While the company's 10-year median is 65.44 vs. the industry median of 34.46, Japan Investment Adviser 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 34.46, based on 1,006 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. Japan Investment Adviser Co's current Gross Margin % of 75.51% is 119.1% 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 Japan Investment Adviser Co and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Investment Adviser Co's current Gross Margin % is 75.51%, which is 15% above median its own 10-year median of 65.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Investment Adviser Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Investment Adviser Co (TSE:7172) is currently considered Fairly Valued. The stock's GF Value™ is 円2,123.57, compared to a current price of 円2,067.00 — trading 2.7% below its estimated fair value. The current Gross Margin % is 75.51%, which is 15% above median its 10-year median of 65.44 and 119.1% above the Business Services industry median of 34.46. Japan Investment Adviser Co's overall GF Score™ is 86/100 with 2 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 Japan Investment Adviser Co (TSE:7172), the current Gross Margin % is 75.51% 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 Japan Investment Adviser Co (TSE:7172) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Investment Adviser Co stock appears to be undervalued.
The current stock price of 円2,067.00 is trading 2.7% below its estimated GF Value™ of 円2,123.57.
GuruFocus considers Japan Investment Adviser Co to be Fairly Valued.
Key valuation signals for TSE:7172:
Gross Margin %: 75.51% (15% above median its 10-year median of 65.44)
GF Value™: 円2,123.57 vs. price of 円2,067.00 (2.7% below fair value)
Industry Position: 119.1% above the Business Services median (#133 of 1006)
No single metric tells the full story. See the TSE:7172 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Investment Adviser Co Ltd is a financial solution provider. It provides financial solution services through its operating lease and other financial businesses.
86GF Score
Get the complete analysis for TSE:7172
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:7172 has been successfully added to your 
