ZenkenTSE:7371 +0.42%56 Gross Margin % is 0.00% as of Dec. 2025. GuruFocus rates TSE:7371 with a GF Score™ of 56/100 and a GF Value™ of 円367.74 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,006 Business Services companies, Zenken ranks better than 76.84% on this metric.
Zenken Corp gross margin has been in long-term decline. The average rate of decline per year is -3.3%.
The historical rank and industry rank for Zenken's Gross Margin % or its related term are showing as below:
TSE:7371'
s Gross Margin % Range Over the Past 10 Years
Min: 51.7 Med: 60.37 Max: 65.15
Current: 58.6
During the past 7 years, the highestGross Margin % of Zenken was 65.15%. The lowest was 51.70%. And the median was 60.37%.
TSE:7371's Gross Margin % is ranked better than 76.84% of 1006
companies
in the Business Services industry
Industry Median: 34.46
vs TSE:7371: 58.60
Zenken had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zenken was -3.30% per year.
Zenken (TSE:7371) 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
Zenken 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.
Zenken Gross Margin % Related Terms
Zenken Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zenken'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:7371 vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, Zenken'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.
Zenken Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Zenken's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zenken'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.
Zenken (TSE:7371) 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 Zenken and its competitors. Over the past decade, Zenken's Gross Margin % has ranged from 51.70 to 65.15. According to the industry distribution chart, Zenken ranks #233 out of 1006 companies in the Business Services industry, placing it in the top 23.2%.
Is Zenken's Gross Margin % too high?
Zenken's current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 51.70 to a high of 65.15. Based on the distribution chart, Zenken ranks #233 out of 1006 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zenken has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenken's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Zenken ranks #233 out of 1006 companies for Gross Margin %. This places Zenken in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.46. Historically, Zenken's own Gross Margin % has ranged from 51.70 to 65.15 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 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. 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 Zenken 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. Zenken'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 Zenken stock overvalued right now?
Based on GuruFocus' analysis, Zenken (TSE:7371) is currently considered Significantly Overvalued. The stock's GF Value™ is 円367.74, compared to a current price of 円724.00 — trading 96.9% above its estimated fair value. The current Gross Margin % is 0.00%. Zenken's overall GF Score™ is 56/100 with 6 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 Zenken (TSE:7371), 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 Zenken (TSE:7371) Overvalued in 2026?
Based on GuruFocus' analysis, Zenken stock appears to be overvalued.
The current stock price of 円724.00 is trading 96.9% above its estimated GF Value™ of 円367.74.
GuruFocus considers Zenken to be Significantly Overvalued.
Key valuation signals for TSE:7371:
Gross Margin %: 0.00%
GF Value™: 円367.74 vs. price of 円724.00 (96.9% above fair value)
No single metric tells the full story. See the TSE:7371 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zenken Corp is engaged in the planning, development, production, operation, management, and consulting business related to various internet digital media. Further, it is also involved in organizing, opening, and operating language schools and training sessions; real estate leasing; and all other related businesses. It has three segments: Business Development, Overseas Human Resources, and Real Estate.
56GF Score
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