DensoDNZOF -8.14%73 Gross Margin % is 16.59% as of Mar. 2026, which is 15% above its 10-year median of 14.38. GuruFocus rates DNZOF with a GF Score™ of 73/100 and a GF Value™ of $11.70 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Denso ranks worse than 66.72% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Denso's Gross Profit for the
three
months ended in Mar. 2026 was $2,138 Mil. Denso's Revenue for the
three
months ended in Mar. 2026 was $12,884 Mil. Therefore, Denso's Gross Margin % for the quarter that ended in Mar. 2026 was 16.59%.
Warning Sign:
Denso Corp gross margin has been in long-term decline. The average rate of decline per year is -13.5%.
The historical rank and industry rank for Denso's Gross Margin % or its related term are showing as below:
DNZOF'
s Gross Margin % Range Over the Past 10 Years
Min: 6.48 Med: 14.38 Max: 16.73
Current: 15.51
During the past 13 years, the highestGross Margin % of Denso was 16.73%. The lowest was 6.48%. And the median was 14.38%.
DNZOF's Gross Margin % is ranked worse than 66.72% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs DNZOF: 15.51
Denso had a gross margin of 16.59% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Denso was -13.50% per year.
Denso (OTCPK:DNZOF) 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
Denso had a gross margin of 16.59% for the quarter that ended in Mar. 2026 => No sustainable 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.
Denso Gross Margin % Related Terms
Denso Gross Margin % Historical Data
* Premium members only.
The historical data trend for Denso'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 Auto Parts subindustry, Denso'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.
Denso Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Denso's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Denso'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.
Denso (DNZOF) has a Gross Margin % of 16.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Denso and its competitors. This is 15% above median its historical median of 14.38. Over the past decade, Denso's Gross Margin % has ranged from 6.48 to 16.73. According to the industry distribution chart, Denso ranks #876 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 66.7%.
Is Denso's Gross Margin % too high?
Denso's current Gross Margin % of 16.59% is 15% above median its 10-year median of 14.38. Over the past 10 years, this metric has ranged from a low of 6.48 to a high of 16.73. The Vehicles & Parts industry median Gross Margin % is 19.84. Denso's value of 16.59% is 16.4% below this industry median. Based on the distribution chart, Denso ranks #876 out of 1313 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Denso has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Denso's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Denso ranks #876 out of 1313 companies for Gross Margin %. This places Denso in the lower half of its industry. The industry median Gross Margin % is 19.84. Denso's value of 16.59% is 16.4% below this benchmark. Historically, Denso's own Gross Margin % has ranged from 6.48 to 16.73 over the past decade. While the company's 10-year median is 14.38 vs. the industry median of 19.84, Denso 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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. Denso's current Gross Margin % of 16.59% is 16.4% 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 Denso and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denso's current Gross Margin % is 16.59%, which is 15% above median its own 10-year median of 14.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denso stock overvalued right now?
Based on GuruFocus' analysis, Denso (DNZOF) is currently considered Fairly Valued. The stock's GF Value™ is $11.70, compared to a current price of $10.73 — trading 8.3% below its estimated fair value. The current Gross Margin % is 16.59%, which is 15% above median its 10-year median of 14.38 and 16.4% below the Vehicles & Parts industry median of 19.84. Denso's overall GF Score™ is 73/100 with 5 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 Denso (DNZOF), the current Gross Margin % is 16.59% 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 Denso (DNZOF) Overvalued in 2026?
Based on GuruFocus' analysis, Denso stock appears to be undervalued.
The current stock price of $10.73 is trading 8.3% below its estimated GF Value™ of $11.70.
GuruFocus considers Denso to be Fairly Valued.
Key valuation signals for DNZOF:
Gross Margin %: 16.59% (15% above median its 10-year median of 14.38)
GF Value™: $11.70 vs. price of $10.73 (8.3% below fair value)
Industry Position: 16.4% below the Vehicles & Parts median (#876 of 1313)
No single metric tells the full story. See the DNZOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denso was founded on Dec. 16, 1949, as Nippondenso, and is now a leading global manufacturer of automotive components, ranging from thermal and powertrain control systems to electronic and electrification solutions, headquartered in Kariya, Aichi Prefecture, Japan, and a core member of the Toyota Group.
73GF Score
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