People Co (TSE:7865) Gross Margin %: 42.64% (As of Jan. 2026) — 14% Above Median

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TSE:7865 People Co Ltd TSE:7865
57 GF Score
Price 円343.00
GF Value 円291.53
Valuation Modestly Overvalued
! 3 Warning Signs
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What is People Co Gross Margin %?

People Co TSE:7865 +0.88% 57 Gross Margin % is 42.64% as of Jan. 2026, which is 14% above its 10-year median of 37.32. GuruFocus rates TSE:7865 with a GF Score™ of 57/100 and a GF Value™ of 円291.53 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 792 Travel & Leisure companies, People Co ranks better than 50.63% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. People Co's Gross Profit for the three months ended in Jan. 2026 was 円241 Mil. People Co's Revenue for the three months ended in Jan. 2026 was 円565 Mil. Therefore, People Co's Gross Margin % for the quarter that ended in Jan. 2026 was 42.64%.


The historical rank and industry rank for People Co's Gross Margin % or its related term are showing as below:

TSE:7865' s Gross Margin % Range Over the Past 10 Years
Min: 24.34   Med: 37.32   Max: 47.38
Current: 43.93


During the past 13 years, the highest Gross Margin % of People Co was 47.38%. The lowest was 24.34%. And the median was 37.32%.

TSE:7865's Gross Margin % is ranked better than
50.63% of 792 companies
in the Travel & Leisure industry
Industry Median: 43.61 vs TSE:7865: 43.93

People Co had a gross margin of 42.64% for the quarter that ended in Jan. 2026 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for People Co was 6.60% per year.


People Co  (TSE:7865) 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

People Co had a gross margin of 42.64% for the quarter that ended in Jan. 2026 => 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.


People Co Gross Margin % Related Terms


People Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for People 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.

People Co Gross Margin % Chart

People Co Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.62 24.34 30.59 47.38 44.37

People Co Quarterly Data
Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 47.67 42.04 46.41 42.64 45.31

TSE:7865 vs AS, HAS, LTH: Gross Margin % Comparison

For the Leisure subindustry, People 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.


People Co Gross Margin % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, People Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where People Co's Gross Margin % falls into.


TSE:7865
57GF Score
People Co Ltd TSE:7865
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

People Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

People Co's Gross Margin for the fiscal year that ended in Jan. 2026 is calculated as

Gross Margin % (A: Jan. 2026 )=Gross Profit (A: Jan. 2026 ) / Revenue (A: Jan. 2026 )
=715.7 / 1612.901
=(Revenue - Cost of Goods Sold) / Revenue
=(1612.901 - 897.248) / 1612.901
=44.37 %

People Co's Gross Margin for the quarter that ended in Jan. 2026 is calculated as


Gross Margin % (Q: Jan. 2026 )=Gross Profit (Q: Jan. 2026 ) / Revenue (Q: Jan. 2026 )
=240.9 / 564.956
=(Revenue - Cost of Goods Sold) / Revenue
=(564.956 - 324.036) / 564.956
=42.64 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 42.64% mean?
People Co (TSE:7865) has a Gross Margin % of 42.64% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on People Co and its competitors. This is 14% above median its historical median of 37.32. Over the past decade, People Co's Gross Margin % has ranged from 24.34 to 47.38. According to the industry distribution chart, People Co ranks #391 out of 792 companies in the Travel & Leisure industry, placing it in the top 49.4%.
Is People Co's Gross Margin % too high?
People Co's current Gross Margin % of 42.64% is 14% above median its 10-year median of 37.32. Over the past 10 years, this metric has ranged from a low of 24.34 to a high of 47.38. The Travel & Leisure industry median Gross Margin % is 43.61. People Co's value of 42.64% is 2.2% below this industry median. Based on the distribution chart, People Co ranks #391 out of 792 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, People Co has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does People Co's Gross Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, People Co ranks #391 out of 792 companies for Gross Margin %. This puts People Co in the upper half of its industry. The industry median Gross Margin % is 43.61. People Co's value of 42.64% is 2.2% below this benchmark. Historically, People Co's own Gross Margin % has ranged from 24.34 to 47.38 over the past decade. While the company's 10-year median is 37.32 vs. the industry median of 43.61, People 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.61, based on 792 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. People Co's current Gross Margin % of 42.64% is 2.2% 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 People Co and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. People Co's current Gross Margin % is 42.64%, which is 14% above median its own 10-year median of 37.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is People Co stock overvalued right now?
Based on GuruFocus' analysis, People Co (TSE:7865) is currently considered Modestly Overvalued. The stock's GF Value™ is 円291.53, compared to a current price of 円343.00 — trading 17.7% above its estimated fair value. The current Gross Margin % is 42.64%, which is 14% above median its 10-year median of 37.32 and 2.2% below the Travel & Leisure industry median of 43.61. People Co's overall GF Score™ is 57/100 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 People Co (TSE:7865), the current Gross Margin % is 42.64% as of Jan. 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 People Co (TSE:7865) Overvalued in 2026?

Based on GuruFocus' analysis, People Co stock appears to be overvalued. The current stock price of 円343.00 is trading 17.7% above its estimated GF Value™ of 円291.53. GuruFocus considers People Co to be Modestly Overvalued.

Key valuation signals for TSE:7865:

  • Gross Margin %: 42.64% (14% above median its 10-year median of 37.32)
  • GF Value™: 円291.53 vs. price of 円343.00 (17.7% above fair value)
  • GF Score™: 57/100 with 3 warning signs
  • Industry Position: 2.2% below the Travel & Leisure median (#391 of 792)

No single metric tells the full story. See the TSE:7865 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


People Co Business Description

Address 2-15-5 Higashinihonbashi, Chuo-ku, Tokyo, JPN, 103-0004
People Co Ltd is a Japan based company engaged in the planning, development and contract manufacturing of toys, playthings, bicycles, furniture and related production.
57GF Score

Get the complete analysis for TSE:7865

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円343.00
Price
円291.53
GF Value