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
Maruichi Steel Tube had a gross margin of 21.71% 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.
Maruichi Steel Tube Gross Margin % Related Terms
Maruichi Steel Tube Gross Margin % Historical Data
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The historical data trend for Maruichi Steel Tube'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 Steel subindustry, Maruichi Steel Tube'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.
Maruichi Steel Tube Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Maruichi Steel Tube's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Maruichi Steel Tube'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.
Maruichi Steel Tube (MCHIF) has a Gross Margin % of 21.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Maruichi Steel Tube and its competitors. This is 10% above median its historical median of 19.77. Over the past decade, Maruichi Steel Tube's Gross Margin % has ranged from 16.74 to 27.04. According to the industry distribution chart, Maruichi Steel Tube ranks #160 out of 597 companies in the Steel industry, placing it in the top 26.8%.
Is Maruichi Steel Tube's Gross Margin % too high?
Maruichi Steel Tube's current Gross Margin % of 21.71% is 10% above median its 10-year median of 19.77. Over the past 10 years, this metric has ranged from a low of 16.74 to a high of 27.04. The Steel industry median Gross Margin % is 12.60. Maruichi Steel Tube's value of 21.71% is 72.3% above this industry median. Based on the distribution chart, Maruichi Steel Tube ranks #160 out of 597 companies in the Steel industry, which is above the industry midpoint. Overall, Maruichi Steel Tube has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Maruichi Steel Tube's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Maruichi Steel Tube ranks #160 out of 597 companies for Gross Margin %. This puts Maruichi Steel Tube in the upper half of its industry. The industry median Gross Margin % is 12.60. Maruichi Steel Tube's value of 21.71% is 72.3% above this benchmark. Historically, Maruichi Steel Tube's own Gross Margin % has ranged from 16.74 to 27.04 over the past decade. While the company's 10-year median is 19.77 vs. the industry median of 12.60, Maruichi Steel Tube 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 597 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. Maruichi Steel Tube's current Gross Margin % of 21.71% is 72.3% 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 Maruichi Steel Tube and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Maruichi Steel Tube's current Gross Margin % is 21.71%, which is 10% above median its own 10-year median of 19.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Maruichi Steel Tube stock overvalued right now?
Maruichi Steel Tube (MCHIF) has a current Gross Margin % of 21.71%. The stock's GF Value™ is $5.19, compared to a current price of $7.31 — trading 40.8% above its estimated fair value. The current Gross Margin % is 21.71%, which is 10% above median its 10-year median of 19.77 and 72.3% above the Steel industry median of 12.60. Maruichi Steel Tube's overall GF Score™ is 81/100 with 4 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 Maruichi Steel Tube (MCHIF), the current Gross Margin % is 21.71% 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 Maruichi Steel Tube (MCHIF) Overvalued in 2026?
Based on GuruFocus' analysis, Maruichi Steel Tube stock appears to be overvalued.
The current stock price of $7.31 is trading 40.8% above its estimated GF Value™ of $5.19.
Key valuation signals for MCHIF:
Gross Margin %: 21.71% (10% above median its 10-year median of 19.77)
GF Value™: $5.19 vs. price of $7.31 (40.8% above fair value)
Industry Position: 72.3% above the Steel median (#160 of 597)
No single metric tells the full story. See the MCHIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Maruichi Steel Tube Ltd is a Japan-based company that manufactures and sells steel tubes and steel sheet coating. The company's product portfolio includes welded steel tubes, hot-dip galvanized steel sheet, lighting poles, and prepainted steel sheet. Its products are used in architecture, civil engineering, machinery, power generation plants, automobiles, motorcycles, medical equipment, fitness machines, office automation equipment, office and educational furniture, and others.
81GF Score
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