Mitsubishi Heavy IndustriesMHVIY +1.54%59 Gross Margin % is 21.97% as of Mar. 2026, which is 19% above its 10-year median of 18.47. GuruFocus rates MHVIY with a GF Score™ of 59/100 and a GF Value™ of $7.33 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,997 Industrial Products companies, Mitsubishi Heavy Industries ranks worse than 64.2% on this metric.
Mitsubishi Heavy Industries (OTCPK:MHVIY) 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
Mitsubishi Heavy Industries had a gross margin of 21.97% 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.
Mitsubishi Heavy Industries Gross Margin % Related Terms
Mitsubishi Heavy Industries Gross Margin % Historical Data
* 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, Mitsubishi Heavy Industries'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.
Mitsubishi Heavy Industries Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Mitsubishi Heavy Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mitsubishi Heavy Industries'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.
Mitsubishi Heavy Industries (MHVIY) has a Gross Margin % of 21.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mitsubishi Heavy Industries and its competitors. This is 19% above median its historical median of 18.47. Over the past decade, Mitsubishi Heavy Industries' Gross Margin % has ranged from 15.77 to 21.77. According to the industry distribution chart, Mitsubishi Heavy Industries ranks #1924 out of 2997 companies in the Industrial Products industry, placing it in the top 64.2%.
Is Mitsubishi Heavy Industries' Gross Margin % too high?
Mitsubishi Heavy Industries' current Gross Margin % of 21.97% is 19% above median its 10-year median of 18.47. Over the past 10 years, this metric has ranged from a low of 15.77 to a high of 21.77. The Industrial Products industry median Gross Margin % is 26.81. Mitsubishi Heavy Industries' value of 21.97% is 18.1% below this industry median. Based on the distribution chart, Mitsubishi Heavy Industries ranks #1924 out of 2997 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Mitsubishi Heavy Industries has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mitsubishi Heavy Industries' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Mitsubishi Heavy Industries ranks #1924 out of 2997 companies for Gross Margin %. This places Mitsubishi Heavy Industries in the lower half of its industry. The industry median Gross Margin % is 26.81. Mitsubishi Heavy Industries' value of 21.97% is 18.1% below this benchmark. Historically, Mitsubishi Heavy Industries' own Gross Margin % has ranged from 15.77 to 21.77 over the past decade. While the company's 10-year median is 18.47 vs. the industry median of 26.81, Mitsubishi Heavy Industries 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 26.81, based on 2,997 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. Mitsubishi Heavy Industries's current Gross Margin % of 21.97% is 18.1% 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 Mitsubishi Heavy Industries and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mitsubishi Heavy Industries's current Gross Margin % is 21.97%, which is 19% above median its own 10-year median of 18.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitsubishi Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Mitsubishi Heavy Industries (MHVIY) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.33, compared to a current price of $11.23 — trading 53.2% above its estimated fair value. The current Gross Margin % is 21.97%, which is 19% above median its 10-year median of 18.47 and 18.1% below the Industrial Products industry median of 26.81. Mitsubishi Heavy Industries' overall GF Score™ is 59/100 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 Mitsubishi Heavy Industries (MHVIY), the current Gross Margin % is 21.97% 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 Mitsubishi Heavy Industries (MHVIY) Overvalued in 2026?
Based on GuruFocus' analysis, Mitsubishi Heavy Industries stock appears to be overvalued.
The current stock price of $11.23 is trading 53.2% above its estimated GF Value™ of $7.33.
GuruFocus considers Mitsubishi Heavy Industries to be Significantly Overvalued.
Key valuation signals for MHVIY:
Gross Margin %: 21.97% (19% above median its 10-year median of 18.47)
GF Value™: $7.33 vs. price of $11.23 (53.2% above fair value)
Industry Position: 18.1% below the Industrial Products median (#1924 of 2997)
No single metric tells the full story. See the MHVIY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitsubishi Heavy Industries is a diversified industrial and engineering group that was founded in 1884 and reorganized in 1950. It operates across four segments: energy systems; plants and infrastructure; logistics, thermal and drive systems; and aircraft, defense and space. MHI is a global leader in large gas turbines and energy services, and a key domestic supplier of aerospace and defense systems. Its end markets include energy infrastructure, industrial equipment, transport, and defense, with a growing focus on decarbonization technologies such as hydrogen- and ammonia-capable turbines. The company employs about 77,000 people globally.
59GF Score
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