Harmonic Drive SystemsHSYDF 69 Gross Margin % is 32.58% as of Mar. 2026, which is 7% below its 10-year median of 35.02. GuruFocus rates HSYDF with a GF Score™ of 69/100 and a GF Value™ of $23.38 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 3,003 Industrial Products companies, Harmonic Drive Systems ranks better than 59.51% on this metric.
HSYDF's Gross Margin % is ranked better than 59.51% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs HSYDF: 30.45
Harmonic Drive Systems had a gross margin of 32.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Harmonic Drive Systems was -5.50% per year.
Harmonic Drive Systems (OTCPK:HSYDF) 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
Harmonic Drive Systems had a gross margin of 32.58% 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.
Harmonic Drive Systems Gross Margin % Related Terms
Harmonic Drive Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Harmonic Drive Systems'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 Specialty Industrial Machinery subindustry, Harmonic Drive Systems'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.
Harmonic Drive Systems Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Harmonic Drive Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Harmonic Drive Systems'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.
Harmonic Drive Systems (HSYDF) has a Gross Margin % of 32.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Harmonic Drive Systems and its competitors. This is near median its historical median of 35.02. Over the past decade, Harmonic Drive Systems' Gross Margin % has ranged from 26.69 to 47.30. According to the industry distribution chart, Harmonic Drive Systems ranks #1216 out of 3003 companies in the Industrial Products industry, placing it in the top 40.5%.
Is Harmonic Drive Systems' Gross Margin % too high?
Harmonic Drive Systems' current Gross Margin % of 32.58% is near median its 10-year median of 35.02. Over the past 10 years, this metric has ranged from a low of 26.69 to a high of 47.30. The Industrial Products industry median Gross Margin % is 26.79. Harmonic Drive Systems' value of 32.58% is 21.6% above this industry median. Based on the distribution chart, Harmonic Drive Systems ranks #1216 out of 3003 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Harmonic Drive Systems has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harmonic Drive Systems' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Harmonic Drive Systems ranks #1216 out of 3003 companies for Gross Margin %. This puts Harmonic Drive Systems in the upper half of its industry. The industry median Gross Margin % is 26.79. Harmonic Drive Systems' value of 32.58% is 21.6% above this benchmark. Historically, Harmonic Drive Systems' own Gross Margin % has ranged from 26.69 to 47.30 over the past decade. While the company's 10-year median is 35.02 vs. the industry median of 26.79, Harmonic Drive Systems 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 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. Harmonic Drive Systems's current Gross Margin % of 32.58% is 21.6% 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 Harmonic Drive Systems 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. Harmonic Drive Systems's current Gross Margin % is 32.58%, which is near median its own 10-year median of 35.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harmonic Drive Systems stock overvalued right now?
Based on GuruFocus' analysis, Harmonic Drive Systems (HSYDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.38, compared to a current price of $48.38 — trading 106.9% above its estimated fair value. The current Gross Margin % is 32.58%, which is near median its 10-year median of 35.02 and 21.6% above the Industrial Products industry median of 26.79. Harmonic Drive Systems' overall GF Score™ is 69/100 with 10 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 Harmonic Drive Systems (HSYDF), the current Gross Margin % is 32.58% 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 Harmonic Drive Systems (HSYDF) Overvalued in 2026?
Based on GuruFocus' analysis, Harmonic Drive Systems stock appears to be overvalued.
The current stock price of $48.38 is trading 106.9% above its estimated GF Value™ of $23.38.
GuruFocus considers Harmonic Drive Systems to be Significantly Overvalued.
Key valuation signals for HSYDF:
Gross Margin %: 32.58% (near median its 10-year median of 35.02)
GF Value™: $23.38 vs. price of $48.38 (106.9% above fair value)
Industry Position: 21.6% above the Industrial Products median (#1216 of 3003)
No single metric tells the full story. See the HSYDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harmonic Drive Systems manufactures and sells high-precision reduction gears (harmonic reducers) under the Harmonic Drive brand as well as other mechatronics products, including rotary actuators, linear actuators, and AC servo motors. The company also provides planetary gear speed reducers under the AccuDrive and Harmonic Planetary brands. Its products are used in industrial robots, semiconductor production equipment, and other high-precision equipment. HDS was founded in 1970 and is headquartered in Tokyo, Japan.
69GF Score
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