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Morimatsu International Holdings Co (FRA:1S5) 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
Morimatsu International Holdings Co had a gross margin of 24.08% 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.
Morimatsu International Holdings Co Gross Margin % Related Terms
Morimatsu International Holdings Co Gross Margin % Historical Data
* 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.
Morimatsu International Holdings Co Gross Margin % Chart
FRA:1S5 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Morimatsu International Holdings 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.
Morimatsu International Holdings Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Morimatsu International Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Morimatsu International Holdings 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.
Morimatsu International Holdings Co (FRA:1S5) has a Gross Margin % of 24.08% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Morimatsu International Holdings Co and its competitors. This is 13% below median its historical median of 27.61. Over the past decade, Morimatsu International Holdings Co's Gross Margin % has ranged from 18.05 to 29.50. According to the industry distribution chart, Morimatsu International Holdings Co ranks #1550 out of 2996 companies in the Industrial Products industry, placing it in the top 51.7%.
Is Morimatsu International Holdings Co's Gross Margin % too high?
Morimatsu International Holdings Co's current Gross Margin % of 24.08% is 13% below median its 10-year median of 27.61. Over the past 10 years, this metric has ranged from a low of 18.05 to a high of 29.50. The Industrial Products industry median Gross Margin % is 26.79. Morimatsu International Holdings Co's value of 24.08% is 10.1% below this industry median. Based on the distribution chart, Morimatsu International Holdings Co ranks #1550 out of 2996 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Morimatsu International Holdings Co has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does Morimatsu International Holdings Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Morimatsu International Holdings Co ranks #1550 out of 2996 companies for Gross Margin %. This places Morimatsu International Holdings Co in the lower half of its industry. The industry median Gross Margin % is 26.79. Morimatsu International Holdings Co's value of 24.08% is 10.1% below this benchmark. Historically, Morimatsu International Holdings Co's own Gross Margin % has ranged from 18.05 to 29.50 over the past decade. While the company's 10-year median is 27.61 vs. the industry median of 26.79, Morimatsu International Holdings 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 2,996 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. Morimatsu International Holdings Co's current Gross Margin % of 24.08% is 10.1% 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 Morimatsu International Holdings Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morimatsu International Holdings Co's current Gross Margin % is 24.08%, which is 13% below median its own 10-year median of 27.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morimatsu International Holdings Co stock overvalued right now?
Morimatsu International Holdings Co (FRA:1S5) has a current Gross Margin % of 24.08%. The stock's GF Value™ is €0.68, compared to a current price of €0.74 — trading 8.8% above its estimated fair value. The current Gross Margin % is 24.08%, which is 13% below median its 10-year median of 27.61 and 10.1% below the Industrial Products industry median of 26.79. Morimatsu International Holdings Co's overall GF Score™ is 91/100 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 Morimatsu International Holdings Co (FRA:1S5), the current Gross Margin % is 24.08% 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 Morimatsu International Holdings Co (FRA:1S5) Overvalued in 2026?
Based on GuruFocus' analysis, Morimatsu International Holdings Co stock appears to be overvalued.
The current stock price of €0.74 is trading 8.8% above its estimated GF Value™ of €0.68.
Key valuation signals for FRA:1S5:
Gross Margin %: 24.08% (13% below median its 10-year median of 27.61)
GF Value™: €0.68 vs. price of €0.74 (8.8% above fair value)
Industry Position: 10.1% below the Industrial Products median (#1550 of 2996)
No single metric tells the full story. See the FRA:1S5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morimatsu International Holdings Co Ltd Groups principal activities are the design, manufacture, installation and operation and maintenance of core equipment, process system (such as process module) and total solutions mainly for chemical reactions, biological reactions and polymerization. The Group currently provides services to downstream industries/fields, including oil and gas refinery, family care, new chemical materials, pharmaceuticals, raw materials for power batteries and electronic chemicals, etc. The Group has determined that it only has one operating segment. The company has presence in Mainland China, North America, Asia (excluding mainland China), Europe, and Africa. The company generates majority of revenue from Asia.
91GF Score
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