Square Enix Holdings CoTSE:9684 -0.02%66 Gross Margin % is 44.84% as of Mar. 2026, which is 7% below its 10-year median of 48.39. GuruFocus rates TSE:9684 with a GF Score™ of 66/100 and a GF Value™ of 円1,850.35 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 497 Interactive Media companies, Square Enix Holdings Co ranks worse than 58.55% on this metric.
TSE:9684's Gross Margin % is ranked worse than 58.55% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs TSE:9684: 53.40
Square Enix Holdings Co had a gross margin of 44.84% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Square Enix Holdings Co was 0.70% per year.
Square Enix Holdings Co (TSE:9684) 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
Square Enix Holdings Co had a gross margin of 44.84% 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.
Square Enix Holdings Co Gross Margin % Related Terms
Square Enix Holdings Co 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:9684 vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Square Enix Holdings 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.
Square Enix Holdings Co Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Square Enix Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Square Enix Holdings 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.
Square Enix Holdings Co (TSE:9684) has a Gross Margin % of 44.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Square Enix Holdings Co and its competitors. This is near median its historical median of 48.39. Over the past decade, Square Enix Holdings Co's Gross Margin % has ranged from 44.45 to 53.47. According to the industry distribution chart, Square Enix Holdings Co ranks #291 out of 497 companies in the Interactive Media industry, placing it in the top 58.6%.
Is Square Enix Holdings Co's Gross Margin % too high?
Square Enix Holdings Co's current Gross Margin % of 44.84% is near median its 10-year median of 48.39. Over the past 10 years, this metric has ranged from a low of 44.45 to a high of 53.47. The Interactive Media industry median Gross Margin % is 62.58. Square Enix Holdings Co's value of 44.84% is 28.3% below this industry median. Based on the distribution chart, Square Enix Holdings Co ranks #291 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Square Enix Holdings Co has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Square Enix Holdings Co's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Square Enix Holdings Co ranks #291 out of 497 companies for Gross Margin %. This places Square Enix Holdings Co in the lower half of its industry. The industry median Gross Margin % is 62.58. Square Enix Holdings Co's value of 44.84% is 28.3% below this benchmark. Historically, Square Enix Holdings Co's own Gross Margin % has ranged from 44.45 to 53.47 over the past decade. While the company's 10-year median is 48.39 vs. the industry median of 62.58, Square Enix Holdings 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Square Enix Holdings Co's current Gross Margin % of 44.84% is 28.3% 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 Square Enix Holdings Co and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Square Enix Holdings Co's current Gross Margin % is 44.84%, which is near median its own 10-year median of 48.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Square Enix Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Square Enix Holdings Co (TSE:9684) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,850.35, compared to a current price of 円2,410.00 — trading 30.2% above its estimated fair value. The current Gross Margin % is 44.84%, which is near median its 10-year median of 48.39 and 28.3% below the Interactive Media industry median of 62.58. Square Enix Holdings Co's overall GF Score™ is 66/100 with 1 warning sign 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 Square Enix Holdings Co (TSE:9684), the current Gross Margin % is 44.84% 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 Square Enix Holdings Co (TSE:9684) Overvalued in 2026?
Based on GuruFocus' analysis, Square Enix Holdings Co stock appears to be overvalued.
The current stock price of 円2,410.00 is trading 30.2% above its estimated GF Value™ of 円1,850.35.
GuruFocus considers Square Enix Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:9684:
Gross Margin %: 44.84% (near median its 10-year median of 48.39)
GF Value™: 円1,850.35 vs. price of 円2,410.00 (30.2% above fair value)
Industry Position: 28.3% below the Interactive Media median (#291 of 497)
No single metric tells the full story. See the TSE:9684 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Square Enix is a Japanese video game publisher and entertainment company that was formed in 2003 through the merger between Square and Enix. The company is best known for its role-playing game franchises such as Final Fantasy, Dragon Quest, Kingdom Hearts, and Nier. The company also operates publishing, merchandise, and amusement businesses.
66GF 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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