Tokai Electronics CoNGO:8071 +1.18%69 Gross Margin % is 15.73% as of Mar. 2026, which is 27% above its 10-year median of 12.34. GuruFocus rates NGO:8071 with a GF Score™ of 69/100 and a GF Value™ of 円2,263.65 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,454 Hardware companies, Tokai Electronics Co ranks worse than 70.62% on this metric.
The historical rank and industry rank for Tokai Electronics Co's Gross Margin % or its related term are showing as below:
NGO:8071'
s Gross Margin % Range Over the Past 10 Years
Min: 10.75 Med: 12.34 Max: 16.11
Current: 16.11
During the past 13 years, the highestGross Margin % of Tokai Electronics Co was 16.11%. The lowest was 10.75%. And the median was 12.34%.
NGO:8071's Gross Margin % is ranked worse than 70.62% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs NGO:8071: 16.11
Tokai Electronics Co had a gross margin of 15.73% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tokai Electronics Co was -0.70% per year.
Tokai Electronics Co (NGO:8071) 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
Tokai Electronics Co had a gross margin of 15.73% 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.
Tokai Electronics Co Gross Margin % Related Terms
Tokai Electronics Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tokai Electronics 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 Electronic Components subindustry, Tokai Electronics 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.
Tokai Electronics Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Tokai Electronics Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Electronics 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.
Tokai Electronics Co (NGO:8071) has a Gross Margin % of 15.73% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tokai Electronics Co and its competitors. This is 27% above median its historical median of 12.34. Over the past decade, Tokai Electronics Co's Gross Margin % has ranged from 10.75 to 16.11. According to the industry distribution chart, Tokai Electronics Co ranks #1733 out of 2454 companies in the Hardware industry, placing it in the top 70.6%.
Is Tokai Electronics Co's Gross Margin % too high?
Tokai Electronics Co's current Gross Margin % of 15.73% is 27% above median its 10-year median of 12.34. Over the past 10 years, this metric has ranged from a low of 10.75 to a high of 16.11. The Hardware industry median Gross Margin % is 24.57. Tokai Electronics Co's value of 15.73% is 36% below this industry median. Based on the distribution chart, Tokai Electronics Co ranks #1733 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, Tokai Electronics Co has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Electronics Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Tokai Electronics Co ranks #1733 out of 2454 companies for Gross Margin %. This places Tokai Electronics Co in the lower half of its industry. The industry median Gross Margin % is 24.57. Tokai Electronics Co's value of 15.73% is 36% below this benchmark. Historically, Tokai Electronics Co's own Gross Margin % has ranged from 10.75 to 16.11 over the past decade. While the company's 10-year median is 12.34 vs. the industry median of 24.57, Tokai Electronics 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 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. Tokai Electronics Co's current Gross Margin % of 15.73% is 36% 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 Tokai Electronics Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Electronics Co's current Gross Margin % is 15.73%, which is 27% above median its own 10-year median of 12.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Tokai Electronics Co (NGO:8071) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,263.65, compared to a current price of 円2,840.00 — trading 25.5% above its estimated fair value. The current Gross Margin % is 15.73%, which is 27% above median its 10-year median of 12.34 and 36% below the Hardware industry median of 24.57. Tokai Electronics Co's overall GF Score™ is 69/100 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 Tokai Electronics Co (NGO:8071), the current Gross Margin % is 15.73% 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 Tokai Electronics Co (NGO:8071) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Electronics Co stock appears to be overvalued.
The current stock price of 円2,840.00 is trading 25.5% above its estimated GF Value™ of 円2,263.65.
GuruFocus considers Tokai Electronics Co to be Modestly Overvalued.
Key valuation signals for NGO:8071:
Gross Margin %: 15.73% (27% above median its 10-year median of 12.34)
GF Value™: 円2,263.65 vs. price of 円2,840.00 (25.5% above fair value)
Industry Position: 36% below the Hardware median (#1733 of 2454)
No single metric tells the full story. See the NGO:8071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Electronics Co Ltd is engaged in the development, sales, import, and export of electronic devices, semiconductor devices, computer and microcomputer applied systems, and software.
69GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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