Tokyo Communications GroupTSE:7359 -0.93%64 Gross Margin % is 73.88% as of Dec. 2025, which is 14% below its 10-year median of 86.15. GuruFocus rates TSE:7359 with a GF Score™ of 64/100 and a GF Value™ of 円496.30 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 946 Media - Diversified companies, Tokyo Communications Group ranks better than 86.26% on this metric.
Tokyo Communications Group (TSE:7359) 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
Tokyo Communications Group had a gross margin of 73.88% 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.
Tokyo Communications Group Gross Margin % Related Terms
Tokyo Communications Group 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:7359 vs APP, OMC, TTD: Gross Margin % Comparison
For the Advertising Agencies subindustry, Tokyo Communications Group'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.
Tokyo Communications Group Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Tokyo Communications Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tokyo Communications Group'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.
Tokyo Communications Group (TSE:7359) has a Gross Margin % of 73.88% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Tokyo Communications Group and its competitors. This is 14% below median its historical median of 86.15. Over the past decade, Tokyo Communications Group's Gross Margin % has ranged from 77.69 to 95.93. According to the industry distribution chart, Tokyo Communications Group ranks #130 out of 946 companies in the Media - Diversified industry, placing it in the top 13.7%.
Is Tokyo Communications Group's Gross Margin % too high?
Tokyo Communications Group's current Gross Margin % of 73.88% is 14% below median its 10-year median of 86.15. Over the past 10 years, this metric has ranged from a low of 77.69 to a high of 95.93. The Media - Diversified industry median Gross Margin % is 38.91. Tokyo Communications Group's value of 73.88% is 89.9% above this industry median. Based on the distribution chart, Tokyo Communications Group ranks #130 out of 946 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Tokyo Communications Group has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tokyo Communications Group's Gross Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Tokyo Communications Group ranks #130 out of 946 companies for Gross Margin %. This places Tokyo Communications Group in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.91. Tokyo Communications Group's value of 73.88% is 89.9% above this benchmark. Historically, Tokyo Communications Group's own Gross Margin % has ranged from 77.69 to 95.93 over the past decade. While the company's 10-year median is 86.15 vs. the industry median of 38.91, Tokyo Communications Group 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.91, based on 946 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. Tokyo Communications Group's current Gross Margin % of 73.88% is 89.9% 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 Tokyo Communications Group and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokyo Communications Group's current Gross Margin % is 73.88%, which is 14% below median its own 10-year median of 86.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Communications Group stock overvalued right now?
Based on GuruFocus' analysis, Tokyo Communications Group (TSE:7359) is currently considered Significantly Undervalued. The stock's GF Value™ is 円496.30, compared to a current price of 円212.00 — trading 57.3% below its estimated fair value. The current Gross Margin % is 73.88%, which is 14% below median its 10-year median of 86.15 and 89.9% above the Media - Diversified industry median of 38.91. Tokyo Communications Group's overall GF Score™ is 64/100 with 5 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 Tokyo Communications Group (TSE:7359), the current Gross Margin % is 73.88% 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 Tokyo Communications Group (TSE:7359) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Communications Group stock appears to be undervalued.
The current stock price of 円212.00 is trading 57.3% below its estimated GF Value™ of 円496.30.
GuruFocus considers Tokyo Communications Group to be Significantly Undervalued.
Key valuation signals for TSE:7359:
Gross Margin %: 73.88% (14% below median its 10-year median of 86.15)
GF Value™: 円496.30 vs. price of 円212.00 (57.3% below fair value)
Industry Position: 89.9% above the Media - Diversified median (#130 of 946)
No single metric tells the full story. See the TSE:7359 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Communications Group Inc is an IT marketing company engaged in two main areas: the application business and the advertising agency business. In the app segment, the company develops smartphone apps that generate advertising revenue. The advertising agency business focuses on affiliate-based internet advertising. The company operates through two key segments: the Media Business and the Platform Business. The Media Business earns revenue from advertisers through media management, development of free smartphone apps, and ad product sales using ad tech. The Platform Business operates communication services, health tech apps, and messaging apps, following monthly subscription or pay-as-you-go models tailored to user needs and market demands.
64GF Score
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