IsbTSE:9702 -0.04%84 Gross Margin % is 22.05% as of Dec. 2025, which is 6% below its 10-year median of 23.46. GuruFocus rates TSE:9702 with a GF Score™ of 84/100 and a GF Value™ of 円1,686.71 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,678 Software companies, Isb ranks worse than 75.13% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Isb's Gross Profit for the
three
months ended in Dec. 2025 was 円2,051 Mil. Isb's Revenue for the
three
months ended in Dec. 2025 was 円9,301 Mil. Therefore, Isb's Gross Margin % for the quarter that ended in Dec. 2025 was 22.05%.
The historical rank and industry rank for Isb's Gross Margin % or its related term are showing as below:
TSE:9702'
s Gross Margin % Range Over the Past 10 Years
Min: 13.59 Med: 23.46 Max: 24.27
Current: 22.76
During the past 13 years, the highestGross Margin % of Isb was 24.27%. The lowest was 13.59%. And the median was 23.46%.
TSE:9702's Gross Margin % is ranked worse than 75.13% of 2678
companies
in the Software industry
Industry Median: 40.455
vs TSE:9702: 22.76
Isb had a gross margin of 22.05% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Isb was -0.50% per year.
Isb (TSE:9702) 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
Isb had a gross margin of 22.05% for the quarter that ended in Dec. 2025 => 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.
Isb Gross Margin % Related Terms
Isb Gross Margin % Historical Data
* Premium members only.
The historical data trend for Isb'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:9702 vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Isb'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.
Isb Gross Margin % vs Software Industry
For the Software industry and Technology sector, Isb's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Isb'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.
Isb (TSE:9702) has a Gross Margin % of 22.05% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Isb and its competitors. This is near median its historical median of 23.46. Over the past decade, Isb's Gross Margin % has ranged from 13.59 to 24.27. According to the industry distribution chart, Isb ranks #2012 out of 2678 companies in the Software industry, placing it in the top 75.1%.
Is Isb's Gross Margin % too high?
Isb's current Gross Margin % of 22.05% is near median its 10-year median of 23.46. Over the past 10 years, this metric has ranged from a low of 13.59 to a high of 24.27. The Software industry median Gross Margin % is 40.46. Isb's value of 22.05% is 45.5% below this industry median. Based on the distribution chart, Isb ranks #2012 out of 2678 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Isb has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Isb's Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Isb ranks #2012 out of 2678 companies for Gross Margin %. This places Isb in the lower half of its industry. The industry median Gross Margin % is 40.46. Isb's value of 22.05% is 45.5% below this benchmark. Historically, Isb's own Gross Margin % has ranged from 13.59 to 24.27 over the past decade. While the company's 10-year median is 23.46 vs. the industry median of 40.46, Isb 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 40.46, based on 2,678 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. Isb's current Gross Margin % of 22.05% is 45.5% 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 Isb and its competitors. For the Software industry, the median Gross Margin % is 40.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Isb's current Gross Margin % is 22.05%, which is near median its own 10-year median of 23.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Isb stock overvalued right now?
Based on GuruFocus' analysis, Isb (TSE:9702) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,686.71, compared to a current price of 円2,300.00 — trading 36.4% above its estimated fair value. The current Gross Margin % is 22.05%, which is near median its 10-year median of 23.46 and 45.5% below the Software industry median of 40.46. Isb's overall GF Score™ is 84/100 with 6 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 Isb (TSE:9702), the current Gross Margin % is 22.05% as of Dec. 2025. 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 Isb (TSE:9702) Overvalued in 2026?
Based on GuruFocus' analysis, Isb stock appears to be overvalued.
The current stock price of 円2,300.00 is trading 36.4% above its estimated GF Value™ of 円1,686.71.
GuruFocus considers Isb to be Significantly Overvalued.
Key valuation signals for TSE:9702:
Gross Margin %: 22.05% (near median its 10-year median of 23.46)
GF Value™: 円1,686.71 vs. price of 円2,300.00 (36.4% above fair value)
Industry Position: 45.5% below the Software median (#2012 of 2678)
No single metric tells the full story. See the TSE:9702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Isb Corp develops software for mobile phones, embedded software for medical, consumer electronics and automobile use, mobile infrastructure devices, software for government, public and autonomous community use, mission-critical systems and software for bank, security and private company use, and provides Internet protocol (IP) solutions and others. It is also engaged in the sale of equipment related to software development, and provision of information processing service.
84GF Score
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