Elecom CoELCMF 86 Gross Margin % is 38.79% as of Mar. 2026, which is 3% above its 10-year median of 37.83. GuruFocus rates ELCMF with a GF Score™ of 86/100 and a GF Value™ of $11.52. The stock has 3 warning signs investors should review. Among 2,454 Hardware companies, Elecom Co ranks better than 76.16% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Elecom Co's Gross Profit for the
three
months ended in Mar. 2026 was $90.1 Mil. Elecom Co's Revenue for the
three
months ended in Mar. 2026 was $232.3 Mil. Therefore, Elecom Co's Gross Margin % for the quarter that ended in Mar. 2026 was 38.79%.
The historical rank and industry rank for Elecom Co's Gross Margin % or its related term are showing as below:
ELCMF'
s Gross Margin % Range Over the Past 10 Years
Min: 33.86 Med: 37.83 Max: 39.63
Current: 39.63
During the past 13 years, the highestGross Margin % of Elecom Co was 39.63%. The lowest was 33.86%. And the median was 37.83%.
ELCMF's Gross Margin % is ranked better than 76.16% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs ELCMF: 39.63
Elecom Co had a gross margin of 38.79% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Elecom Co was 1.20% per year.
Elecom Co (OTCPK:ELCMF) 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
Elecom Co had a gross margin of 38.79% 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.
Elecom Co Gross Margin % Related Terms
Elecom Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Elecom 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.
ELCMF vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Elecom 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.
Elecom Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Elecom Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Elecom 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.
Elecom Co (ELCMF) has a Gross Margin % of 38.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Elecom Co and its competitors. This is near median its historical median of 37.83. Over the past decade, Elecom Co's Gross Margin % has ranged from 33.86 to 39.63. According to the industry distribution chart, Elecom Co ranks #585 out of 2454 companies in the Hardware industry, placing it in the top 23.8%.
Is Elecom Co's Gross Margin % too high?
Elecom Co's current Gross Margin % of 38.79% is near median its 10-year median of 37.83. Over the past 10 years, this metric has ranged from a low of 33.86 to a high of 39.63. The Hardware industry median Gross Margin % is 24.57. Elecom Co's value of 38.79% is 57.9% above this industry median. Based on the distribution chart, Elecom Co ranks #585 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Elecom Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Elecom Co's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Elecom Co ranks #585 out of 2454 companies for Gross Margin %. This places Elecom Co in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.57. Elecom Co's value of 38.79% is 57.9% above this benchmark. Historically, Elecom Co's own Gross Margin % has ranged from 33.86 to 39.63 over the past decade. While the company's 10-year median is 37.83 vs. the industry median of 24.57, Elecom Co has consistently been above 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 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. Elecom Co's current Gross Margin % of 38.79% is 57.9% above 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 Elecom Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elecom Co's current Gross Margin % is 38.79%, which is near median its own 10-year median of 37.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elecom Co stock overvalued right now?
Elecom Co (ELCMF) has a current Gross Margin % of 38.79%. The stock's GF Value™ is $11.52, compared to a current price of $10.15 — trading 11.9% below its estimated fair value. The current Gross Margin % is 38.79%, which is near median its 10-year median of 37.83 and 57.9% above the Hardware industry median of 24.57. Elecom Co's overall GF Score™ is 86/100 with 3 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 Elecom Co (ELCMF), the current Gross Margin % is 38.79% 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 Elecom Co (ELCMF) Overvalued in 2026?
Based on GuruFocus' analysis, Elecom Co stock appears to be undervalued.
The current stock price of $10.15 is trading 11.9% below its estimated GF Value™ of $11.52.
Key valuation signals for ELCMF:
Gross Margin %: 38.79% (near median its 10-year median of 37.83)
GF Value™: $11.52 vs. price of $10.15 (11.9% below fair value)
Industry Position: 57.9% above the Hardware median (#585 of 2454)
No single metric tells the full story. See the ELCMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elecom Co Ltd is a Japan-based company which is engaged in the development, manufacture and sale of personal computer- and digital-equipment-related products through its subsidiaries. Its products portfolio includes personal computers, smartphones, televisions, digital photo frames, batteries, weight scales, digital cameras, digital video cameras, electronic dictionaries, speakers, game machines, light-emitting diode (LED) lighting devices, and others. The company also supplies peripherals, I/O devices, and PC accessories, such as mouse pads, mice and keyboards.
86GF Score
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