Arcs CoTSE:9948 -2.95%84 Gross Margin % is 25.54% as of Feb. 2026, which is 1% above its 10-year median of 25.21. GuruFocus rates TSE:9948 with a GF Score™ of 84/100 and a GF Value™ of 円3,121.47 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,113 Retail - Cyclical companies, Arcs Co ranks worse than 70.08% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Arcs Co's Gross Profit for the
three
months ended in Feb. 2026 was 円41,420 Mil. Arcs Co's Revenue for the
three
months ended in Feb. 2026 was 円162,186 Mil. Therefore, Arcs Co's Gross Margin % for the quarter that ended in Feb. 2026 was 25.54%.
The historical rank and industry rank for Arcs Co's Gross Margin % or its related term are showing as below:
TSE:9948'
s Gross Margin % Range Over the Past 10 Years
Min: 24.62 Med: 25.21 Max: 25.7
Current: 25.17
During the past 13 years, the highestGross Margin % of Arcs Co was 25.70%. The lowest was 24.62%. And the median was 25.21%.
TSE:9948's Gross Margin % is ranked worse than 70.08% of 1113
companies
in the Retail - Cyclical industry
Industry Median: 36.29
vs TSE:9948: 25.17
Arcs Co had a gross margin of 25.54% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Arcs Co was -0.50% per year.
Arcs Co (TSE:9948) 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
Arcs Co had a gross margin of 25.54% for the quarter that ended in Feb. 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.
Arcs Co Gross Margin % Related Terms
Arcs Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Arcs 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.
For the Department Stores subindustry, Arcs 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.
Arcs Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Arcs Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arcs 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.
Arcs Co (TSE:9948) has a Gross Margin % of 25.54% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arcs Co and its competitors. This is near median its historical median of 25.21. Over the past decade, Arcs Co's Gross Margin % has ranged from 24.62 to 25.70. According to the industry distribution chart, Arcs Co ranks #780 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 70.1%.
Is Arcs Co's Gross Margin % too high?
Arcs Co's current Gross Margin % of 25.54% is near median its 10-year median of 25.21. Over the past 10 years, this metric has ranged from a low of 24.62 to a high of 25.70. The Retail - Cyclical industry median Gross Margin % is 36.29. Arcs Co's value of 25.54% is 29.6% below this industry median. Based on the distribution chart, Arcs Co ranks #780 out of 1113 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Arcs Co has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arcs Co's Gross Margin % compare to DDS?
According to the Retail - Cyclical industry distribution chart, Arcs Co ranks #780 out of 1113 companies for Gross Margin %. This places Arcs Co in the lower half of its industry. The industry median Gross Margin % is 36.29. Arcs Co's value of 25.54% is 29.6% below this benchmark. Historically, Arcs Co's own Gross Margin % has ranged from 24.62 to 25.70 over the past decade. While the company's 10-year median is 25.21 vs. the industry median of 36.29, Arcs 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 a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.29, based on 1,113 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. Arcs Co's current Gross Margin % of 25.54% is 29.6% 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 Arcs Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcs Co's current Gross Margin % is 25.54%, which is near median its own 10-year median of 25.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcs Co stock overvalued right now?
Based on GuruFocus' analysis, Arcs Co (TSE:9948) is currently considered Fairly Valued. The stock's GF Value™ is 円3,121.47, compared to a current price of 円3,295.00 — trading 5.6% above its estimated fair value. The current Gross Margin % is 25.54%, which is near median its 10-year median of 25.21 and 29.6% below the Retail - Cyclical industry median of 36.29. Arcs Co's overall GF Score™ is 84/100 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 Arcs Co (TSE:9948), the current Gross Margin % is 25.54% as of Feb. 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 Arcs Co (TSE:9948) Overvalued in 2026?
Based on GuruFocus' analysis, Arcs Co stock appears to be overvalued.
The current stock price of 円3,295.00 is trading 5.6% above its estimated GF Value™ of 円3,121.47.
GuruFocus considers Arcs Co to be Fairly Valued.
Key valuation signals for TSE:9948:
Gross Margin %: 25.54% (near median its 10-year median of 25.21)
GF Value™: 円3,121.47 vs. price of 円3,295.00 (5.6% above fair value)
Industry Position: 29.6% below the Retail - Cyclical median (#780 of 1113)
No single metric tells the full story. See the TSE:9948 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arcs Co Ltd is a Japan-based company principally engaged in the supermarket business. The company also operates other businesses through subsidiaries, including tourism, building maintenance, real estate leasing, property and casualty insurance, life insurance agency, wholesale, food manufacturing, industrial and general waste collection, and construction businesses. The group operates in a single segment related to retail.
84GF 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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