ITO ENITONF 74 Gross Margin % is 35.33% as of Oct. 2025, which is 25% below its 10-year median of 47.15. GuruFocus rates ITONF with a GF Score™ of 74/100 and a GF Value™ of $88.43. The stock has 1 warning sign investors should review. Among 115 Beverages - Non-Alcoholic companies, ITO EN ranks worse than 61.74% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. ITO EN's Gross Profit for the
three
months ended in Oct. 2025 was $307 Mil. ITO EN's Revenue for the
three
months ended in Oct. 2025 was $870 Mil. Therefore, ITO EN's Gross Margin % for the quarter that ended in Oct. 2025 was 35.33%.
Warning Sign:
ITO EN Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.2%.
The historical rank and industry rank for ITO EN's Gross Margin % or its related term are showing as below:
ITONF'
s Gross Margin % Range Over the Past 10 Years
Min: 36.43 Med: 47.15 Max: 48.18
Current: 36.43
During the past 13 years, the highestGross Margin % of ITO EN was 48.18%. The lowest was 36.43%. And the median was 47.15%.
ITONF's Gross Margin % is ranked worse than 61.74% of 115
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 38.43
vs ITONF: 36.43
ITO EN had a gross margin of 35.33% for the quarter that ended in Oct. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for ITO EN was -5.20% per year.
ITO EN (OTCPK:ITONF) 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
ITO EN had a gross margin of 35.33% for the quarter that ended in Oct. 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.
ITO EN Gross Margin % Related Terms
ITO EN Gross Margin % Historical Data
* Premium members only.
The historical data trend for ITO EN'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 Beverages - Non-Alcoholic subindustry, ITO EN'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.
ITO EN Gross Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, ITO EN's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ITO EN'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.
ITO EN (ITONF) has a Gross Margin % of 35.33% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ITO EN and its competitors. This is 25% below median its historical median of 47.15. Over the past decade, ITO EN's Gross Margin % has ranged from 36.43 to 48.18. According to the industry distribution chart, ITO EN ranks #71 out of 115 companies in the Beverages - Non-Alcoholic industry, placing it in the top 61.7%.
Is ITO EN's Gross Margin % too high?
ITO EN's current Gross Margin % of 35.33% is 25% below median its 10-year median of 47.15. Over the past 10 years, this metric has ranged from a low of 36.43 to a high of 48.18. The Beverages - Non-Alcoholic industry median Gross Margin % is 38.43. ITO EN's value of 35.33% is 8.1% below this industry median. Based on the distribution chart, ITO EN ranks #71 out of 115 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, ITO EN has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does ITO EN's Gross Margin % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, ITO EN ranks #71 out of 115 companies for Gross Margin %. This places ITO EN in the lower half of its industry. The industry median Gross Margin % is 38.43. ITO EN's value of 35.33% is 8.1% below this benchmark. Historically, ITO EN's own Gross Margin % has ranged from 36.43 to 48.18 over the past decade. While the company's 10-year median is 47.15 vs. the industry median of 38.43, ITO EN 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 Beverages - Non-Alcoholic company?
The median Gross Margin % among Beverages - Non-Alcoholic companies is 38.43, based on 115 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. ITO EN's current Gross Margin % of 35.33% is 8.1% 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 ITO EN and its competitors. For the Beverages - Non-Alcoholic industry, the median Gross Margin % is 38.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITO EN's current Gross Margin % is 35.33%, which is 25% below median its own 10-year median of 47.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITO EN stock overvalued right now?
ITO EN (ITONF) has a current Gross Margin % of 35.33%. The stock's GF Value™ is $88.43, compared to a current price of $61.41 — trading 30.6% below its estimated fair value. The current Gross Margin % is 35.33%, which is 25% below median its 10-year median of 47.15 and 8.1% below the Beverages - Non-Alcoholic industry median of 38.43. ITO EN's overall GF Score™ is 74/100 with 1 warning sign 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 ITO EN (ITONF), the current Gross Margin % is 35.33% as of Oct. 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 ITO EN (ITONF) Overvalued in 2026?
Based on GuruFocus' analysis, ITO EN stock appears to be undervalued.
The current stock price of $61.41 is trading 30.6% below its estimated GF Value™ of $88.43.
Key valuation signals for ITONF:
Gross Margin %: 35.33% (25% below median its 10-year median of 47.15)
GF Value™: $88.43 vs. price of $61.41 (30.6% below fair value)
Industry Position: 8.1% below the Beverages - Non-Alcoholic median (#71 of 115)
No single metric tells the full story. See the ITONF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITO EN Ltd makes beverages and other tea and nutritional products that it sells in Japan. Ito En primarily sells green tea products, including ready-to-drink beverages, tea bags, and other tea leaf products, under its Oi Ocha brand. Other beverages the company sells include black tea, Chinese tea, coffee, vegetable beverages, fruit beverages, mineral water, and functional beverages. The Leaf- and Drink-Related business segment makes up roughly 90% of the company's total revenue. Most remaining revenue is generated from Ito En's restaurant business, which operates hundreds of Tully's coffee shops in Japan.
74GF Score
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