SatoSATOF 83 Gross Margin % is 40.44% as of Mar. 2026, which is 3% below its 10-year median of 41.58. GuruFocus rates SATOF with a GF Score™ of 83/100 and a GF Value™ of $14.78. The stock has 3 warning signs investors should review. Among 3,003 Industrial Products companies, Sato ranks better than 78.45% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Sato's Gross Profit for the
three
months ended in Mar. 2026 was $106 Mil. Sato's Revenue for the
three
months ended in Mar. 2026 was $263 Mil. Therefore, Sato's Gross Margin % for the quarter that ended in Mar. 2026 was 40.44%.
The historical rank and industry rank for Sato's Gross Margin % or its related term are showing as below:
SATOF'
s Gross Margin % Range Over the Past 10 Years
Min: 39.69 Med: 41.58 Max: 43.62
Current: 39.97
During the past 13 years, the highestGross Margin % of Sato was 43.62%. The lowest was 39.69%. And the median was 41.58%.
SATOF's Gross Margin % is ranked better than 78.45% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs SATOF: 39.97
Sato had a gross margin of 40.44% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sato was -0.50% per year.
Sato (OTCPK:SATOF) 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
Sato had a gross margin of 40.44% for the quarter that ended in Mar. 2026 => Durable 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.
Sato Gross Margin % Related Terms
Sato Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sato'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 Business Equipment & Supplies subindustry, Sato'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.
Sato Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sato's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sato'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.
Sato (SATOF) has a Gross Margin % of 40.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sato and its competitors. This is near median its historical median of 41.58. Over the past decade, Sato's Gross Margin % has ranged from 39.69 to 43.62. According to the industry distribution chart, Sato ranks #647 out of 3003 companies in the Industrial Products industry, placing it in the top 21.5%.
Is Sato's Gross Margin % too high?
Sato's current Gross Margin % of 40.44% is near median its 10-year median of 41.58. Over the past 10 years, this metric has ranged from a low of 39.69 to a high of 43.62. The Industrial Products industry median Gross Margin % is 26.79. Sato's value of 40.44% is 51% above this industry median. Based on the distribution chart, Sato ranks #647 out of 3003 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Sato has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Sato's Gross Margin % compare to competitors?
According to the Industrial Products industry distribution chart, Sato ranks #647 out of 3003 companies for Gross Margin %. This places Sato in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.79. Sato's value of 40.44% is 51% above this benchmark. Historically, Sato's own Gross Margin % has ranged from 39.69 to 43.62 over the past decade. While the company's 10-year median is 41.58 vs. the industry median of 26.79, Sato 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. Sato's current Gross Margin % of 40.44% is 51% 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 Sato 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. Sato's current Gross Margin % is 40.44%, which is near median its own 10-year median of 41.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sato stock overvalued right now?
Sato (SATOF) has a current Gross Margin % of 40.44%. The stock's GF Value™ is $14.78, compared to a current price of $14.33 — trading 3% below its estimated fair value. The current Gross Margin % is 40.44%, which is near median its 10-year median of 41.58 and 51% above the Industrial Products industry median of 26.79. Sato's overall GF Score™ is 83/100 with 3 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 Sato (SATOF), the current Gross Margin % is 40.44% 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 Sato (SATOF) Overvalued in 2026?
Based on GuruFocus' analysis, Sato stock appears to be undervalued.
The current stock price of $14.33 is trading 3% below its estimated GF Value™ of $14.78.
Key valuation signals for SATOF:
Gross Margin %: 40.44% (near median its 10-year median of 41.58)
GF Value™: $14.78 vs. price of $14.33 (3% below fair value)
Industry Position: 51% above the Industrial Products median (#647 of 3003)
No single metric tells the full story. See the SATOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sato Corp is specializing in automatic identification (auto-ID) solutions. It designs and manufactures different products including label and RFID printers, print and apply machines, software, labels, tags, and hand labelers. These products are integrated into solutions featuring peripherals like barcode and RFID readers, aimed at streamlining workflows and enabling data capture and visualization. The company's offerings cater to various industries, providing enhanced productivity, safety, reassurance, and sustainability.
83GF Score
Get the complete analysis for SATOF
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SATOF has been successfully added to your 
