Top Culture CoTSE:7640 45 Gross Margin % is 36.14% as of Apr. 2026, which is 15% above its 10-year median of 31.53. GuruFocus rates TSE:7640 with a GF Score™ of 45/100 and a GF Value™ of 円129.33 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,113 Retail - Cyclical companies, Top Culture Co ranks worse than 51.3% on this metric.
The historical rank and industry rank for Top Culture Co's Gross Margin % or its related term are showing as below:
TSE:7640'
s Gross Margin % Range Over the Past 10 Years
Min: 28.93 Med: 31.53 Max: 35.77
Current: 35.77
During the past 13 years, the highestGross Margin % of Top Culture Co was 35.77%. The lowest was 28.93%. And the median was 31.53%.
TSE:7640's Gross Margin % is ranked worse than 51.3% of 1113
companies
in the Retail - Cyclical industry
Industry Median: 36.29
vs TSE:7640: 35.77
Top Culture Co had a gross margin of 36.14% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Top Culture Co was 3.30% per year.
Top Culture Co (TSE:7640) 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
Top Culture Co had a gross margin of 36.14% for the quarter that ended in Apr. 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.
Top Culture Co Gross Margin % Related Terms
Top Culture Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Top Culture Co'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:7640 vs CASY, WSM, DKS: Gross Margin % Comparison
For the Specialty Retail subindustry, Top Culture 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.
Top Culture Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Top Culture Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Top Culture 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.
Top Culture Co (TSE:7640) has a Gross Margin % of 36.14% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Top Culture Co and its competitors. This is 15% above median its historical median of 31.53. Over the past decade, Top Culture Co's Gross Margin % has ranged from 28.93 to 35.77. According to the industry distribution chart, Top Culture Co ranks #571 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 51.3%.
Is Top Culture Co's Gross Margin % too high?
Top Culture Co's current Gross Margin % of 36.14% is 15% above median its 10-year median of 31.53. Over the past 10 years, this metric has ranged from a low of 28.93 to a high of 35.77. The Retail - Cyclical industry median Gross Margin % is 36.29. Top Culture Co's value of 36.14% is 0.4% below this industry median. Based on the distribution chart, Top Culture Co ranks #571 out of 1113 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Top Culture Co has a GF Score™ of 45/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Top Culture Co's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Top Culture Co ranks #571 out of 1113 companies for Gross Margin %. This places Top Culture Co in the lower half of its industry. The industry median Gross Margin % is 36.29. Top Culture Co's value of 36.14% is 0.4% below this benchmark. Historically, Top Culture Co's own Gross Margin % has ranged from 28.93 to 35.77 over the past decade. While the company's 10-year median is 31.53 vs. the industry median of 36.29, Top Culture Co 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.29, based on 1,113 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. Top Culture Co's current Gross Margin % of 36.14% is 0.4% 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 Top Culture Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Top Culture Co's current Gross Margin % is 36.14%, which is 15% above median its own 10-year median of 31.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Top Culture Co stock overvalued right now?
Based on GuruFocus' analysis, Top Culture Co (TSE:7640) is currently considered Modestly Overvalued. The stock's GF Value™ is 円129.33, compared to a current price of 円160.00 — trading 23.7% above its estimated fair value. The current Gross Margin % is 36.14%, which is 15% above median its 10-year median of 31.53 and 0.4% below the Retail - Cyclical industry median of 36.29. Top Culture Co's overall GF Score™ is 45/100 with 3 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 Top Culture Co (TSE:7640), the current Gross Margin % is 36.14% as of Apr. 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 Top Culture Co (TSE:7640) Overvalued in 2026?
Based on GuruFocus' analysis, Top Culture Co stock appears to be overvalued.
The current stock price of 円160.00 is trading 23.7% above its estimated GF Value™ of 円129.33.
GuruFocus considers Top Culture Co to be Modestly Overvalued.
Key valuation signals for TSE:7640:
Gross Margin %: 36.14% (15% above median its 10-year median of 31.53)
GF Value™: 円129.33 vs. price of 円160.00 (23.7% above fair value)
Industry Position: 0.4% below the Retail - Cyclical median (#571 of 1113)
No single metric tells the full story. See the TSE:7640 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Top Culture Co Ltd is a speciality retail company. The firm mainly sells books, stationery, music and video software. The company owns and operates approximately 74 retail stores in Japan. In addition, the company is engaged in the management of sports facilities and maintenance of store facilities. Its reportable segments are: Tsutaya Bookstore Business, Games and trading cards business, Sports-related business, Visiting nurse business, and Catering business.
45GF Score
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