Toho Holdings CoFRA:TON 26 Gross Margin % is 8.35% as of Mar. 2026, which is 1% below its 10-year median of 8.40. GuruFocus rates FRA:TON with a GF Score™ of 26/100 and a GF Value™ of €25.56 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 116 Medical Distribution companies, Toho Holdings Co ranks worse than 83.62% on this metric.
Toho Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Toho Holdings Co's Gross Margin % or its related term are showing as below:
FRA:TON'
s Gross Margin % Range Over the Past 10 Years
Min: 7.88 Med: 8.4 Max: 9.41
Current: 7.88
During the past 13 years, the highestGross Margin % of Toho Holdings Co was 9.41%. The lowest was 7.88%. And the median was 8.40%.
FRA:TON's Gross Margin % is ranked worse than 83.62% of 116
companies
in the Medical Distribution industry
Industry Median: 14.9
vs FRA:TON: 7.88
Toho Holdings Co had a gross margin of 8.35% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Toho Holdings Co was -1.20% per year.
Toho Holdings Co (FRA:TON) 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
Toho Holdings Co had a gross margin of 8.35% 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.
Toho Holdings Co Gross Margin % Related Terms
Toho Holdings Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Toho Holdings 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.
FRA:TON vs MCK, CAH, COR: Gross Margin % Comparison
For the Medical Distribution subindustry, Toho 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.
Toho Holdings Co Gross Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Toho Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Toho 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.
Toho Holdings Co (FRA:TON) has a Gross Margin % of 8.35% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Toho Holdings Co and its competitors. This is near median its historical median of 8.40. Over the past decade, Toho Holdings Co's Gross Margin % has ranged from 7.88 to 9.41. According to the industry distribution chart, Toho Holdings Co ranks #97 out of 116 companies in the Medical Distribution industry, placing it in the top 83.6%.
Is Toho Holdings Co's Gross Margin % too high?
Toho Holdings Co's current Gross Margin % of 8.35% is near median its 10-year median of 8.40. Over the past 10 years, this metric has ranged from a low of 7.88 to a high of 9.41. The Medical Distribution industry median Gross Margin % is 14.90. Toho Holdings Co's value of 8.35% is 44% below this industry median. Based on the distribution chart, Toho Holdings Co ranks #97 out of 116 companies in the Medical Distribution industry, which is in the bottom quartile relative to peers. Overall, Toho Holdings Co has a GF Score™ of 26/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Toho Holdings Co's Gross Margin % compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Toho Holdings Co ranks #97 out of 116 companies for Gross Margin %. This places Toho Holdings Co in the lower half of its industry. The industry median Gross Margin % is 14.90. Toho Holdings Co's value of 8.35% is 44% below this benchmark. Historically, Toho Holdings Co's own Gross Margin % has ranged from 7.88 to 9.41 over the past decade. While the company's 10-year median is 8.40 vs. the industry median of 14.90, Toho 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 a Medical Distribution company?
The median Gross Margin % among Medical Distribution companies is 14.90, based on 116 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. Toho Holdings Co's current Gross Margin % of 8.35% is 44% 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 Toho Holdings Co and its competitors. For the Medical Distribution industry, the median Gross Margin % is 14.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toho Holdings Co's current Gross Margin % is 8.35%, which is near median its own 10-year median of 8.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toho Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Toho Holdings Co (FRA:TON) is currently considered Modestly Undervalued. The stock's GF Value™ is €25.56, compared to a current price of €21.40 — trading 16.3% below its estimated fair value. The current Gross Margin % is 8.35%, which is near median its 10-year median of 8.40 and 44% below the Medical Distribution industry median of 14.90. Toho Holdings Co's overall GF Score™ is 26/100 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 Toho Holdings Co (FRA:TON), the current Gross Margin % is 8.35% 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 Toho Holdings Co (FRA:TON) Overvalued in 2026?
Based on GuruFocus' analysis, Toho Holdings Co stock appears to be undervalued.
The current stock price of €21.40 is trading 16.3% below its estimated GF Value™ of €25.56.
GuruFocus considers Toho Holdings Co to be Modestly Undervalued.
Key valuation signals for FRA:TON:
Gross Margin %: 8.35% (near median its 10-year median of 8.40)
GF Value™: €25.56 vs. price of €21.40 (16.3% below fair value)
Industry Position: 44% below the Medical Distribution median (#97 of 116)
No single metric tells the full story. See the FRA:TON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toho Holdings Co Ltd is a specialty and generic drug manufacturing company. The company's business includes pharmaceutical wholesaling and pharmacy dispensing. It also maintains a site-management organization business that assists a variety of medical establishments, ranging from large medical institutions to private clinics, with a wide range of clinical trials under contract. The company supports medical institutions suitable for respective trials to improve the quality and speed of clinical trials. It generates additional revenue through software sales to medical institutions.
26GF Score
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