TOTOTOTDF -3.95%68 Gross Margin % is 35.39% as of Mar. 2026, which is 2% below its 10-year median of 36.11. GuruFocus rates TOTDF with a GF Score™ of 68/100 and a GF Value™ of $26.78 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,723 Construction companies, TOTO ranks better than 76.9% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. TOTO's Gross Profit for the
three
months ended in Mar. 2026 was $425 Mil. TOTO's Revenue for the
three
months ended in Mar. 2026 was $1,200 Mil. Therefore, TOTO's Gross Margin % for the quarter that ended in Mar. 2026 was 35.39%.
The historical rank and industry rank for TOTO's Gross Margin % or its related term are showing as below:
TOTDF'
s Gross Margin % Range Over the Past 10 Years
Min: 34.03 Med: 36.11 Max: 38.59
Current: 35.61
During the past 13 years, the highestGross Margin % of TOTO was 38.59%. The lowest was 34.03%. And the median was 36.11%.
TOTDF's Gross Margin % is ranked better than 76.9% of 1723
companies
in the Construction industry
Industry Median: 20.7
vs TOTDF: 35.61
TOTO had a gross margin of 35.39% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for TOTO was -0.80% per year.
TOTO (OTCPK:TOTDF) 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
TOTO had a gross margin of 35.39% 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.
TOTO Gross Margin % Related Terms
TOTO Gross Margin % Historical Data
* Premium members only.
The historical data trend for TOTO'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 Building Products & Equipment subindustry, TOTO'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.
TOTO Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, TOTO's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TOTO'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.
TOTO (TOTDF) has a Gross Margin % of 35.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TOTO and its competitors. This is near median its historical median of 36.11. Over the past decade, TOTO's Gross Margin % has ranged from 34.03 to 38.59. According to the industry distribution chart, TOTO ranks #398 out of 1723 companies in the Construction industry, placing it in the top 23.1%.
Is TOTO's Gross Margin % too high?
TOTO's current Gross Margin % of 35.39% is near median its 10-year median of 36.11. Over the past 10 years, this metric has ranged from a low of 34.03 to a high of 38.59. The Construction industry median Gross Margin % is 20.70. TOTO's value of 35.39% is 71% above this industry median. Based on the distribution chart, TOTO ranks #398 out of 1723 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, TOTO has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TOTO's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, TOTO ranks #398 out of 1723 companies for Gross Margin %. This places TOTO in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.70. TOTO's value of 35.39% is 71% above this benchmark. Historically, TOTO's own Gross Margin % has ranged from 34.03 to 38.59 over the past decade. While the company's 10-year median is 36.11 vs. the industry median of 20.70, TOTO 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 Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,723 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. TOTO's current Gross Margin % of 35.39% is 71% 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 TOTO and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TOTO's current Gross Margin % is 35.39%, which is near median its own 10-year median of 36.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOTO stock overvalued right now?
Based on GuruFocus' analysis, TOTO (TOTDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $26.78, compared to a current price of $56.28 — trading 110.2% above its estimated fair value. The current Gross Margin % is 35.39%, which is near median its 10-year median of 36.11 and 71% above the Construction industry median of 20.70. TOTO's overall GF Score™ is 68/100 with 7 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 TOTO (TOTDF), the current Gross Margin % is 35.39% 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 TOTO (TOTDF) Overvalued in 2026?
Based on GuruFocus' analysis, TOTO stock appears to be overvalued.
The current stock price of $56.28 is trading 110.2% above its estimated GF Value™ of $26.78.
GuruFocus considers TOTO to be Significantly Overvalued.
Key valuation signals for TOTDF:
Gross Margin %: 35.39% (near median its 10-year median of 36.11)
GF Value™: $26.78 vs. price of $56.28 (110.2% above fair value)
Industry Position: 71% above the Construction median (#398 of 1723)
No single metric tells the full story. See the TOTDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOTO Ltd manufactures and sells bathroom materials for maintenance, improvement, construction, and home improvement projects. The company's product portfolio includes toilets, urinals, sinks, plumbing accessories, bathtubs, unit bathrooms, faucets, drain fittings, marble counters, and electric water heaters, and others.. The firm organizes itself based on geography and operates through six business segments, which include the Japan Housing Equipment Business segment, the Mainland China Business segment, the Asia and Oceania Business segment, the Americas Business segment, the Europe Business segment, and the New field business - Ceramic business.. It generates the majority of its revenue from the Japan Housing Equipment Business segment.
68GF 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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