Step CoTSE:9795 -1.11%74 Gross Margin % is 34.42% as of Mar. 2026, which is 14% above its 10-year median of 30.14. GuruFocus rates TSE:9795 with a GF Score™ of 74/100 and a GF Value™ of 円2,360.80 (Fairly Valued). Among 243 Education companies, Step Co ranks worse than 76.95% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Step Co's Gross Profit for the
six
months ended in Mar. 2026 was 円2,876 Mil. Step Co's Revenue for the
six
months ended in Mar. 2026 was 円8,357 Mil. Therefore, Step Co's Gross Margin % for the quarter that ended in Mar. 2026 was 34.42%.
The historical rank and industry rank for Step Co's Gross Margin % or its related term are showing as below:
TSE:9795'
s Gross Margin % Range Over the Past 10 Years
Min: 24.52 Med: 30.14 Max: 32.72
Current: 29.73
During the past 13 years, the highestGross Margin % of Step Co was 32.72%. The lowest was 24.52%. And the median was 30.14%.
TSE:9795's Gross Margin % is ranked worse than 76.95% of 243
companies
in the Education industry
Industry Median: 47.93
vs TSE:9795: 29.73
Step Co had a gross margin of 34.42% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Step Co was 1.30% per year.
Step Co (TSE:9795) 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
Step Co had a gross margin of 34.42% for the quarter that ended in Mar. 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.
Step Co Gross Margin % Related Terms
Step Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Step 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.
TSE:9795 vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, Step 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.
Step Co Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Step Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Step 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.
Step Co (TSE:9795) has a Gross Margin % of 34.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Step Co and its competitors. This is 14% above median its historical median of 30.14. Over the past decade, Step Co's Gross Margin % has ranged from 24.52 to 32.72. According to the industry distribution chart, Step Co ranks #187 out of 243 companies in the Education industry, placing it in the top 77%.
Is Step Co's Gross Margin % too high?
Step Co's current Gross Margin % of 34.42% is 14% above median its 10-year median of 30.14. Over the past 10 years, this metric has ranged from a low of 24.52 to a high of 32.72. The Education industry median Gross Margin % is 47.93. Step Co's value of 34.42% is 28.2% below this industry median. Based on the distribution chart, Step Co ranks #187 out of 243 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Step Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Step Co's Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Step Co ranks #187 out of 243 companies for Gross Margin %. This places Step Co in the lower half of its industry. The industry median Gross Margin % is 47.93. Step Co's value of 34.42% is 28.2% below this benchmark. Historically, Step Co's own Gross Margin % has ranged from 24.52 to 32.72 over the past decade. While the company's 10-year median is 30.14 vs. the industry median of 47.93, Step 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 Education company?
The median Gross Margin % among Education companies is 47.93, based on 243 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. Step Co's current Gross Margin % of 34.42% is 28.2% 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 Step Co and its competitors. For the Education industry, the median Gross Margin % is 47.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Step Co's current Gross Margin % is 34.42%, which is 14% above median its own 10-year median of 30.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Step Co stock overvalued right now?
Based on GuruFocus' analysis, Step Co (TSE:9795) is currently considered Fairly Valued. The stock's GF Value™ is 円2,360.80, compared to a current price of 円2,226.00 — trading 5.7% below its estimated fair value. The current Gross Margin % is 34.42%, which is 14% above median its 10-year median of 30.14 and 28.2% below the Education industry median of 47.93. Step Co's overall GF Score™ is 74/100. 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 Step Co (TSE:9795), the current Gross Margin % is 34.42% 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 Step Co (TSE:9795) Overvalued in 2026?
Based on GuruFocus' analysis, Step Co stock appears to be undervalued.
The current stock price of 円2,226.00 is trading 5.7% below its estimated GF Value™ of 円2,360.80.
GuruFocus considers Step Co to be Fairly Valued.
Key valuation signals for TSE:9795:
Gross Margin %: 34.42% (14% above median its 10-year median of 30.14)
GF Value™: 円2,360.80 vs. price of 円2,226.00 (5.7% below fair value)
Industry Position: 28.2% below the Education median (#187 of 243)
No single metric tells the full story. See the TSE:9795 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Step Co Ltd is a Japan-based company engaged in the operation of private preparatory schools. The company operates cram schools and after-school care facilities, and produces and edits educational materials, as well as prints and binds books. The company is engaged in providing high school entrance exam preparation courses, Teaching Materials Research Division produces manuscripts and original plates for teaching materials, academic programs, physical education, and shogi (Japanese chess), and other activities.
74GF Score
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