Japan EngineKDCLF 60 Gross Margin % is 34.95% as of Mar. 2026, which is 60% above its 10-year median of 21.84. GuruFocus rates KDCLF with a GF Score™ of 60/100 and a GF Value™ of $34.01 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 3,003 Industrial Products companies, Japan Engine ranks better than 65.23% on this metric.
The historical rank and industry rank for Japan Engine's Gross Margin % or its related term are showing as below:
KDCLF'
s Gross Margin % Range Over the Past 10 Years
Min: 7 Med: 21.84 Max: 32.81
Current: 32.81
During the past 13 years, the highestGross Margin % of Japan Engine was 32.81%. The lowest was 7.00%. And the median was 21.84%.
KDCLF's Gross Margin % is ranked better than 65.23% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs KDCLF: 32.81
Japan Engine had a gross margin of 34.95% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Japan Engine was 9.90% per year.
Japan Engine (OTCPK:KDCLF) 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 Engine had a gross margin of 34.95% 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.
Japan Engine Gross Margin % Related Terms
Japan Engine Gross Margin % Historical Data
* Premium members only.
The historical data trend for Japan Engine'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, Japan Engine'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 Engine Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Japan Engine's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Engine'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 Engine (KDCLF) has a Gross Margin % of 34.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Engine and its competitors. This is 60% above median its historical median of 21.84. Over the past decade, Japan Engine's Gross Margin % has ranged from 7.00 to 32.81. According to the industry distribution chart, Japan Engine ranks #1044 out of 3003 companies in the Industrial Products industry, placing it in the top 34.8%.
Is Japan Engine's Gross Margin % too high?
Japan Engine's current Gross Margin % of 34.95% is 60% above median its 10-year median of 21.84. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 32.81. The Industrial Products industry median Gross Margin % is 26.79. Japan Engine's value of 34.95% is 30.5% above this industry median. Based on the distribution chart, Japan Engine ranks #1044 out of 3003 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Japan Engine has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Engine's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Japan Engine ranks #1044 out of 3003 companies for Gross Margin %. This puts Japan Engine in the upper half of its industry. The industry median Gross Margin % is 26.79. Japan Engine's value of 34.95% is 30.5% above this benchmark. Historically, Japan Engine's own Gross Margin % has ranged from 7.00 to 32.81 over the past decade. While the company's 10-year median is 21.84 vs. the industry median of 26.79, Japan Engine 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. Japan Engine's current Gross Margin % of 34.95% is 30.5% 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 Engine 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. Japan Engine's current Gross Margin % is 34.95%, which is 60% above median its own 10-year median of 21.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Engine stock overvalued right now?
Based on GuruFocus' analysis, Japan Engine (KDCLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $34.01, compared to a current price of $50.45 — trading 48.3% above its estimated fair value. The current Gross Margin % is 34.95%, which is 60% above median its 10-year median of 21.84 and 30.5% above the Industrial Products industry median of 26.79. Japan Engine's overall GF Score™ is 60/100 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 Japan Engine (KDCLF), the current Gross Margin % is 34.95% 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 Engine (KDCLF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Engine stock appears to be overvalued.
The current stock price of $50.45 is trading 48.3% above its estimated GF Value™ of $34.01.
GuruFocus considers Japan Engine to be Significantly Overvalued.
Key valuation signals for KDCLF:
Gross Margin %: 34.95% (60% above median its 10-year median of 21.84)
GF Value™: $34.01 vs. price of $50.45 (48.3% above fair value)
Industry Position: 30.5% above the Industrial Products median (#1044 of 3003)
No single metric tells the full story. See the KDCLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Engine Corp is a Japanese company engaged in the production and sale of various types of UE diesel engines. It also manufactures machinery and equipment related to marine, factory automation and energy saving. The organization has a business presence in Japan and other countries.
60GF Score
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