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KDDITSE:9433 +0.91%74 Gross Margin % is 41.94% as of Mar. 2026, which is 4% below its 10-year median of 43.67. GuruFocus rates TSE:9433 with a GF Score™ of 74/100 and a GF Value™ of 円2,795.16 (Fairly Valued). The stock has 10 warning signs investors should review. Among 339 Telecommunication Services companies, KDDI ranks worse than 59.29% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. KDDI's Gross Profit for the
six
months ended in Mar. 2026 was 円1,323,601 Mil. KDDI's Revenue for the
six
months ended in Mar. 2026 was 円3,155,910 Mil. Therefore, KDDI's Gross Margin % for the quarter that ended in Mar. 2026 was 41.94%.
Warning Sign:
KDDI Corp gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for KDDI's Gross Margin % or its related term are showing as below:
TSE:9433'
s Gross Margin % Range Over the Past 10 Years
Min: 42.55 Med: 43.67 Max: 45.2
Current: 42.67
During the past 13 years, the highestGross Margin % of KDDI was 45.20%. The lowest was 42.55%. And the median was 43.67%.
TSE:9433's Gross Margin % is ranked worse than 59.29% of 339
companies
in the Telecommunication Services industry
Industry Median: 51.78
vs TSE:9433: 42.67
KDDI had a gross margin of 41.94% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for KDDI was -1.20% per year.
KDDI (TSE:9433) 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
KDDI had a gross margin of 41.94% for the quarter that ended in Mar. 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.
KDDI Gross Margin % Related Terms
KDDI Gross Margin % Historical Data
* Premium members only.
The historical data trend for KDDI'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:9433 vs TMUS, VZ, T: Gross Margin % Comparison
For the Telecom Services subindustry, KDDI'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.
KDDI Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, KDDI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KDDI'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.
KDDI (TSE:9433) has a Gross Margin % of 41.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on KDDI and its competitors. This is near median its historical median of 43.67. Over the past decade, KDDI's Gross Margin % has ranged from 42.55 to 45.20. According to the industry distribution chart, KDDI ranks #201 out of 339 companies in the Telecommunication Services industry, placing it in the top 59.3%.
Is KDDI's Gross Margin % too high?
KDDI's current Gross Margin % of 41.94% is near median its 10-year median of 43.67. Over the past 10 years, this metric has ranged from a low of 42.55 to a high of 45.20. The Telecommunication Services industry median Gross Margin % is 51.78. KDDI's value of 41.94% is 19% below this industry median. Based on the distribution chart, KDDI ranks #201 out of 339 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, KDDI has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KDDI's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, KDDI ranks #201 out of 339 companies for Gross Margin %. This places KDDI in the lower half of its industry. The industry median Gross Margin % is 51.78. KDDI's value of 41.94% is 19% below this benchmark. Historically, KDDI's own Gross Margin % has ranged from 42.55 to 45.20 over the past decade. While the company's 10-year median is 43.67 vs. the industry median of 51.78, KDDI 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.78, based on 339 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. KDDI's current Gross Margin % of 41.94% is 19% 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 KDDI and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KDDI's current Gross Margin % is 41.94%, which is near median its own 10-year median of 43.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KDDI stock overvalued right now?
Based on GuruFocus' analysis, KDDI (TSE:9433) is currently considered Fairly Valued. The stock's GF Value™ is 円2,795.16, compared to a current price of 円2,835.00 — trading 1.4% above its estimated fair value. The current Gross Margin % is 41.94%, which is near median its 10-year median of 43.67 and 19% below the Telecommunication Services industry median of 51.78. KDDI's overall GF Score™ is 74/100 with 10 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 KDDI (TSE:9433), the current Gross Margin % is 41.94% as of Mar. 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 KDDI (TSE:9433) Overvalued in 2026?
Based on GuruFocus' analysis, KDDI stock appears to be overvalued.
The current stock price of 円2,835.00 is trading 1.4% above its estimated GF Value™ of 円2,795.16.
GuruFocus considers KDDI to be Fairly Valued.
Key valuation signals for TSE:9433:
Gross Margin %: 41.94% (near median its 10-year median of 43.67)
GF Value™: 円2,795.16 vs. price of 円2,835.00 (1.4% above fair value)
Industry Position: 19% below the Telecommunication Services median (#201 of 339)
No single metric tells the full story. See the TSE:9433 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KDDI is Japan's second-largest wireless operator (30% market share), the largest pay-TV operator (53% market share) and the second-largest provider of fibre-to-the-home broadband (12% market share). It has grown through acquisition and is focusing on increasing the number of customers who subscribe to more than one telecommunication service. It is also looking to grow its Life Design business which includes commerce, energy, and finance and had over 57 million Internet of Things connections by the end of March 2026.
74GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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