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
Computer Engineeringnsulting had a gross margin of 25.11% for the quarter that ended in Jan. 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.
Computer Engineeringnsulting Gross Margin % Related Terms
Computer Engineeringnsulting 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:9692 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Computer Engineeringnsulting'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.
Computer Engineeringnsulting Gross Margin % vs Software Industry
For the Software industry and Technology sector, Computer Engineeringnsulting's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Computer Engineeringnsulting'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.
Computer Engineeringnsulting (TSE:9692) has a Gross Margin % of 25.11% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Computer Engineeringnsulting and its competitors. This is near median its historical median of 23.96. Over the past decade, Computer Engineeringnsulting's Gross Margin % has ranged from 21.40 to 27.30. According to the industry distribution chart, Computer Engineeringnsulting ranks #1876 out of 2680 companies in the Software industry, placing it in the top 70%.
Is Computer Engineeringnsulting's Gross Margin % too high?
Computer Engineeringnsulting's current Gross Margin % of 25.11% is near median its 10-year median of 23.96. Over the past 10 years, this metric has ranged from a low of 21.40 to a high of 27.30. The Software industry median Gross Margin % is 40.45. Computer Engineeringnsulting's value of 25.11% is 37.9% below this industry median. Based on the distribution chart, Computer Engineeringnsulting ranks #1876 out of 2680 companies in the Software industry, which is below the industry midpoint. Overall, Computer Engineeringnsulting has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Computer Engineeringnsulting's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Computer Engineeringnsulting ranks #1876 out of 2680 companies for Gross Margin %. This places Computer Engineeringnsulting in the lower half of its industry. The industry median Gross Margin % is 40.45. Computer Engineeringnsulting's value of 25.11% is 37.9% below this benchmark. Historically, Computer Engineeringnsulting's own Gross Margin % has ranged from 21.40 to 27.30 over the past decade. While the company's 10-year median is 23.96 vs. the industry median of 40.45, Computer Engineeringnsulting 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 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. Computer Engineeringnsulting's current Gross Margin % of 25.11% is 37.9% 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 Computer Engineeringnsulting and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Computer Engineeringnsulting's current Gross Margin % is 25.11%, which is near median its own 10-year median of 23.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Computer Engineeringnsulting stock overvalued right now?
Based on GuruFocus' analysis, Computer Engineeringnsulting (TSE:9692) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,518.02, compared to a current price of 円2,103.00 — trading 16.5% below its estimated fair value. The current Gross Margin % is 25.11%, which is near median its 10-year median of 23.96 and 37.9% below the Software industry median of 40.45. Computer Engineeringnsulting's overall GF Score™ is 80/100. 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 Computer Engineeringnsulting (TSE:9692), the current Gross Margin % is 25.11% 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 Computer Engineeringnsulting (TSE:9692) Overvalued in 2026?
Based on GuruFocus' analysis, Computer Engineeringnsulting stock appears to be undervalued.
The current stock price of 円2,103.00 is trading 16.5% below its estimated GF Value™ of 円2,518.02.
GuruFocus considers Computer Engineeringnsulting to be Modestly Undervalued.
Key valuation signals for TSE:9692:
Gross Margin %: 25.11% (near median its 10-year median of 23.96)
GF Value™: 円2,518.02 vs. price of 円2,103.00 (16.5% below fair value)
Industry Position: 37.9% below the Software median (#1876 of 2680)
No single metric tells the full story. See the TSE:9692 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Computer Engineering & Consulting Ltd. is a Japan-based company engaged in software development, information technology (IT) management, and verification services. The company's business segment includes: Integration Segment - offers a one-stop service for all aspects of ICT, from planning information systems to infrastructure design, construction, and operation, focusing on traditional system development. Connected Segment- provide system development in the mobility and smart factory sectors, as well as services that analyze and utilize digital data. Solution Segment - Leveraging security technology and data centers, providing products and services to diverse sectors.
80GF Score
Get the complete analysis for TSE:9692
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:9692 has been successfully added to your 
