The Japan Steel WorksJPSWY +0.95%82 Gross Margin % is 24.36% as of Mar. 2026, which is 7% above its 10-year median of 22.76. GuruFocus rates JPSWY with a GF Score™ of 82/100 and a GF Value™ of $20.38 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,996 Industrial Products companies, The Japan Steel Works ranks worse than 59.58% on this metric.
JPSWY's Gross Margin % is ranked worse than 59.58% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs JPSWY: 23.38
The Japan Steel Works had a gross margin of 24.36% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Japan Steel Works was 2.40% per year.
The Japan Steel Works (OTCPK:JPSWY) 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
The Japan Steel Works had a gross margin of 24.36% 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.
The Japan Steel Works Gross Margin % Related Terms
The Japan Steel Works Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Japan Steel Works'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, The Japan Steel Works'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.
The Japan Steel Works Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Japan Steel Works's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Japan Steel Works'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.
The Japan Steel Works (JPSWY) has a Gross Margin % of 24.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Japan Steel Works and its competitors. This is near median its historical median of 22.76. Over the past decade, The Japan Steel Works' Gross Margin % has ranged from 19.66 to 24.54. According to the industry distribution chart, The Japan Steel Works ranks #1785 out of 2996 companies in the Industrial Products industry, placing it in the top 59.6%.
Is The Japan Steel Works' Gross Margin % too high?
The Japan Steel Works' current Gross Margin % of 24.36% is near median its 10-year median of 22.76. Over the past 10 years, this metric has ranged from a low of 19.66 to a high of 24.54. The Industrial Products industry median Gross Margin % is 26.80. The Japan Steel Works' value of 24.36% is 9.1% below this industry median. Based on the distribution chart, The Japan Steel Works ranks #1785 out of 2996 companies in the Industrial Products industry, which is below the industry midpoint. Overall, The Japan Steel Works has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Japan Steel Works' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, The Japan Steel Works ranks #1785 out of 2996 companies for Gross Margin %. This places The Japan Steel Works in the lower half of its industry. The industry median Gross Margin % is 26.80. The Japan Steel Works' value of 24.36% is 9.1% below this benchmark. Historically, The Japan Steel Works' own Gross Margin % has ranged from 19.66 to 24.54 over the past decade. While the company's 10-year median is 22.76 vs. the industry median of 26.80, The Japan Steel Works 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. The Japan Steel Works's current Gross Margin % of 24.36% is 9.1% 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 The Japan Steel Works and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Japan Steel Works's current Gross Margin % is 24.36%, which is near median its own 10-year median of 22.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Japan Steel Works stock overvalued right now?
Based on GuruFocus' analysis, The Japan Steel Works (JPSWY) is currently considered Modestly Overvalued. The stock's GF Value™ is $20.38, compared to a current price of $24.55 — trading 20.5% above its estimated fair value. The current Gross Margin % is 24.36%, which is near median its 10-year median of 22.76 and 9.1% below the Industrial Products industry median of 26.80. The Japan Steel Works' overall GF Score™ is 82/100 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 The Japan Steel Works (JPSWY), the current Gross Margin % is 24.36% 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 The Japan Steel Works (JPSWY) Overvalued in 2026?
Based on GuruFocus' analysis, The Japan Steel Works stock appears to be overvalued.
The current stock price of $24.55 is trading 20.5% above its estimated GF Value™ of $20.38.
GuruFocus considers The Japan Steel Works to be Modestly Overvalued.
Key valuation signals for JPSWY:
Gross Margin %: 24.36% (near median its 10-year median of 22.76)
GF Value™: $20.38 vs. price of $24.55 (20.5% above fair value)
Industry Position: 9.1% below the Industrial Products median (#1785 of 2996)
No single metric tells the full story. See the JPSWY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Japan Steel Works Ltd provides industrial machinery as well as materials and engineering solutions in Japan and internationally. The company operates through two segments. The Industrial Machinery segment provides resin manufacturing and processing machinery, molding machines, defense-related equipment, and other industrial machinery. The Materials and Engineering segment covers raw material products and engineering operations. The Other segment includes the film deposition business, crystal business, and related activities. It generates the majority of its revenue from the Industrial machinery business segment.
82GF Score
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