Japan TobaccoJAPAF 78 Gross Margin % is 58.98% as of Mar. 2026, which is 3% above its 10-year median of 57.49. GuruFocus rates JAPAF with a GF Score™ of 78/100 and a GF Value™ of $33.10 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 47 Tobacco Products companies, Japan Tobacco ranks better than 76.6% on this metric.
The historical rank and industry rank for Japan Tobacco's Gross Margin % or its related term are showing as below:
JAPAF'
s Gross Margin % Range Over the Past 10 Years
Min: 54.88 Med: 57.49 Max: 60.57
Current: 56.47
During the past 13 years, the highestGross Margin % of Japan Tobacco was 60.57%. The lowest was 54.88%. And the median was 57.49%.
JAPAF's Gross Margin % is ranked better than 76.6% of 47
companies
in the Tobacco Products industry
Industry Median: 33.29
vs JAPAF: 56.47
Japan Tobacco had a gross margin of 58.98% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Japan Tobacco was -0.90% per year.
Japan Tobacco (OTCPK:JAPAF) 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
Japan Tobacco had a gross margin of 58.98% for the quarter that ended in Mar. 2026 => Durable 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.
Japan Tobacco Gross Margin % Related Terms
Japan Tobacco Gross Margin % Historical Data
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The historical data trend for Japan Tobacco'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 Tobacco subindustry, Japan Tobacco'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.
Japan Tobacco Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Tobacco'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.
Japan Tobacco (JAPAF) has a Gross Margin % of 58.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Tobacco and its competitors. This is near median its historical median of 57.49. Over the past decade, Japan Tobacco's Gross Margin % has ranged from 54.88 to 60.57. According to the industry distribution chart, Japan Tobacco ranks #11 out of 47 companies in the Tobacco Products industry, placing it in the top 23.4%.
Is Japan Tobacco's Gross Margin % too high?
Japan Tobacco's current Gross Margin % of 58.98% is near median its 10-year median of 57.49. Over the past 10 years, this metric has ranged from a low of 54.88 to a high of 60.57. The Tobacco Products industry median Gross Margin % is 33.29. Japan Tobacco's value of 58.98% is 77.2% above this industry median. Based on the distribution chart, Japan Tobacco ranks #11 out of 47 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Tobacco has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's Gross Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Japan Tobacco ranks #11 out of 47 companies for Gross Margin %. This places Japan Tobacco in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 33.29. Japan Tobacco's value of 58.98% is 77.2% above this benchmark. Historically, Japan Tobacco's own Gross Margin % has ranged from 54.88 to 60.57 over the past decade. While the company's 10-year median is 57.49 vs. the industry median of 33.29, Japan Tobacco 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 a Tobacco Products company?
The median Gross Margin % among Tobacco Products companies is 33.29, based on 47 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. Japan Tobacco's current Gross Margin % of 58.98% is 77.2% 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 Japan Tobacco and its competitors. For the Tobacco Products industry, the median Gross Margin % is 33.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Tobacco's current Gross Margin % is 58.98%, which is near median its own 10-year median of 57.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $33.10, compared to a current price of $37.74 — trading 14% above its estimated fair value. The current Gross Margin % is 58.98%, which is near median its 10-year median of 57.49 and 77.2% above the Tobacco Products industry median of 33.29. Japan Tobacco's overall GF Score™ is 78/100 with 7 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 Japan Tobacco (JAPAF), the current Gross Margin % is 58.98% 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 Japan Tobacco (JAPAF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued.
The current stock price of $37.74 is trading 14% above its estimated GF Value™ of $33.10.
GuruFocus considers Japan Tobacco to be Modestly Overvalued.
Key valuation signals for JAPAF:
Gross Margin %: 58.98% (near median its 10-year median of 57.49)
GF Value™: $33.10 vs. price of $37.74 (14% above fair value)
Industry Position: 77.2% above the Tobacco Products median (#11 of 47)
No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
78GF Score
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