Kumagai Gumi CoKMGGF +0.87%79 Gross Margin % is 12.44% as of Mar. 2026, which is 18% above its 10-year median of 10.56. GuruFocus rates KMGGF with a GF Score™ of 79/100 and a GF Value™ of $8.45. The stock has 5 warning signs investors should review. Among 1,719 Construction companies, Kumagai Gumi Co ranks worse than 78.01% on this metric.
Kumagai Gumi Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for Kumagai Gumi Co's Gross Margin % or its related term are showing as below:
KMGGF'
s Gross Margin % Range Over the Past 10 Years
Min: 7.68 Med: 10.56 Max: 11.92
Current: 10.92
During the past 13 years, the highestGross Margin % of Kumagai Gumi Co was 11.92%. The lowest was 7.68%. And the median was 10.56%.
KMGGF's Gross Margin % is ranked worse than 78.01% of 1719
companies
in the Construction industry
Industry Median: 20.71
vs KMGGF: 10.92
Kumagai Gumi Co had a gross margin of 12.44% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kumagai Gumi Co was -2.10% per year.
Kumagai Gumi Co (OTCPK:KMGGF) 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
Kumagai Gumi Co had a gross margin of 12.44% for the quarter that ended in Mar. 2026 => No sustainable 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.
Kumagai Gumi Co Gross Margin % Related Terms
Kumagai Gumi Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Kumagai Gumi Co'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 Engineering & Construction subindustry, Kumagai Gumi Co'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.
Kumagai Gumi Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Kumagai Gumi Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kumagai Gumi Co'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.
Kumagai Gumi Co (KMGGF) has a Gross Margin % of 12.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kumagai Gumi Co and its competitors. This is 18% above median its historical median of 10.56. Over the past decade, Kumagai Gumi Co's Gross Margin % has ranged from 7.68 to 11.92. According to the industry distribution chart, Kumagai Gumi Co ranks #1341 out of 1719 companies in the Construction industry, placing it in the top 78%.
Is Kumagai Gumi Co's Gross Margin % too high?
Kumagai Gumi Co's current Gross Margin % of 12.44% is 18% above median its 10-year median of 10.56. Over the past 10 years, this metric has ranged from a low of 7.68 to a high of 11.92. The Construction industry median Gross Margin % is 20.71. Kumagai Gumi Co's value of 12.44% is 39.9% below this industry median. Based on the distribution chart, Kumagai Gumi Co ranks #1341 out of 1719 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Kumagai Gumi Co has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Kumagai Gumi Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Kumagai Gumi Co ranks #1341 out of 1719 companies for Gross Margin %. This places Kumagai Gumi Co in the lower half of its industry. The industry median Gross Margin % is 20.71. Kumagai Gumi Co's value of 12.44% is 39.9% below this benchmark. Historically, Kumagai Gumi Co's own Gross Margin % has ranged from 7.68 to 11.92 over the past decade. While the company's 10-year median is 10.56 vs. the industry median of 20.71, Kumagai Gumi Co 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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. Kumagai Gumi Co's current Gross Margin % of 12.44% is 39.9% 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 Kumagai Gumi Co and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumagai Gumi Co's current Gross Margin % is 12.44%, which is 18% above median its own 10-year median of 10.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumagai Gumi Co stock overvalued right now?
Kumagai Gumi Co (KMGGF) has a current Gross Margin % of 12.44%. The stock's GF Value™ is $8.45, compared to a current price of $8.70 — trading 3% above its estimated fair value. The current Gross Margin % is 12.44%, which is 18% above median its 10-year median of 10.56 and 39.9% below the Construction industry median of 20.71. Kumagai Gumi Co's overall GF Score™ is 79/100 with 5 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 Kumagai Gumi Co (KMGGF), the current Gross Margin % is 12.44% 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 Kumagai Gumi Co (KMGGF) Overvalued in 2026?
Based on GuruFocus' analysis, Kumagai Gumi Co stock appears to be overvalued.
The current stock price of $8.70 is trading 3% above its estimated GF Value™ of $8.45.
Key valuation signals for KMGGF:
Gross Margin %: 12.44% (18% above median its 10-year median of 10.56)
GF Value™: $8.45 vs. price of $8.70 (3% above fair value)
Industry Position: 39.9% below the Construction median (#1341 of 1719)
No single metric tells the full story. See the KMGGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kumagai Gumi Co Ltd is a Japanese company that provides services in construction and civil engineering. The company analyzes, designs, and supervises complex construction projects. It also offers engineering and technical services throughout the construction process. These projects include roads, railways, airports, water systems, and other public facilities. In addition, the company is engaged in manufacturing and selling construction materials and machinery. Construction activities account for the majority of revenue. The company generates additional revenue from developing residential and commercial complexes and either operating the building or acting as a broker and selling the real estate.
79GF Score
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