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
Hankyu Hanshin Holdings had a gross margin of 9.04% 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.
Hankyu Hanshin Holdings Gross Margin % Related Terms
Hankyu Hanshin Holdings 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.
For the Conglomerates subindustry, Hankyu Hanshin Holdings'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.
Hankyu Hanshin Holdings Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hankyu Hanshin Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hankyu Hanshin Holdings'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.
Hankyu Hanshin Holdings (FRA:HKY) has a Gross Margin % of 9.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hankyu Hanshin Holdings and its competitors. This is 35% below median its historical median of 13.87. Over the past decade, Hankyu Hanshin Holdings' Gross Margin % has ranged from 4.70 to 18.12. According to the industry distribution chart, Hankyu Hanshin Holdings ranks #408 out of 511 companies in the Conglomerates industry, placing it in the top 79.8%.
Is Hankyu Hanshin Holdings' Gross Margin % too high?
Hankyu Hanshin Holdings' current Gross Margin % of 9.04% is 35% below median its 10-year median of 13.87. Over the past 10 years, this metric has ranged from a low of 4.70 to a high of 18.12. The Conglomerates industry median Gross Margin % is 25.96. Hankyu Hanshin Holdings' value of 9.04% is 65.2% below this industry median. Based on the distribution chart, Hankyu Hanshin Holdings ranks #408 out of 511 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Hankyu Hanshin Holdings has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Hankyu Hanshin Holdings' Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hankyu Hanshin Holdings ranks #408 out of 511 companies for Gross Margin %. This places Hankyu Hanshin Holdings in the lower half of its industry. The industry median Gross Margin % is 25.96. Hankyu Hanshin Holdings' value of 9.04% is 65.2% below this benchmark. Historically, Hankyu Hanshin Holdings' own Gross Margin % has ranged from 4.70 to 18.12 over the past decade. While the company's 10-year median is 13.87 vs. the industry median of 25.96, Hankyu Hanshin Holdings 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 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. Hankyu Hanshin Holdings's current Gross Margin % of 9.04% is 65.2% 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 Hankyu Hanshin Holdings and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hankyu Hanshin Holdings's current Gross Margin % is 9.04%, which is 35% below median its own 10-year median of 13.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hankyu Hanshin Holdings stock overvalued right now?
Hankyu Hanshin Holdings (FRA:HKY) has a current Gross Margin % of 9.04%. The stock's GF Value™ is €26.10, compared to a current price of €22.60 — trading 13.4% below its estimated fair value. The current Gross Margin % is 9.04%, which is 35% below median its 10-year median of 13.87 and 65.2% below the Conglomerates industry median of 25.96. Hankyu Hanshin Holdings' overall GF Score™ is 76/100 with 2 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 Hankyu Hanshin Holdings (FRA:HKY), the current Gross Margin % is 9.04% 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 Hankyu Hanshin Holdings (FRA:HKY) Overvalued in 2026?
Based on GuruFocus' analysis, Hankyu Hanshin Holdings stock appears to be undervalued.
The current stock price of €22.60 is trading 13.4% below its estimated GF Value™ of €26.10.
Key valuation signals for FRA:HKY:
Gross Margin %: 9.04% (35% below median its 10-year median of 13.87)
GF Value™: €26.10 vs. price of €22.60 (13.4% below fair value)
Industry Position: 65.2% below the Conglomerates median (#408 of 511)
No single metric tells the full story. See the FRA:HKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hankyu Hanshin Holdings Inc is a Japanese conglomerate with diverse operations spanning transportation, real estate, entertainment, and related businesses. Its operating segments include Entertainment, Information and Communication, International Transportation, Real Estate, Travel, Urban Transportation, and Others. It generates the majority of its revenue from the Real Estate segment, which involves leasing business, condominium sales business, etc., and hotel business.
76GF 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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