Hikari Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.8%.
The historical rank and industry rank for Hikari Holdings Co's Gross Margin % or its related term are showing as below:
TSE:1445'
s Gross Margin % Range Over the Past 10 Years
Min: 20.45 Med: 26.62 Max: 35.82
Current: 20.78
During the past 10 years, the highestGross Margin % of Hikari Holdings Co was 35.82%. The lowest was 20.45%. And the median was 26.62%.
TSE:1445's Gross Margin % is not ranked
in the Conglomerates industry.
Industry Median: 25.96
vs TSE:1445: 20.78
Hikari Holdings Co had a gross margin of 22.64% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hikari Holdings Co was -5.80% per year.
Hikari Holdings Co (TSE:1445) 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
Hikari Holdings Co had a gross margin of 22.64% for the quarter that ended in Feb. 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.
Hikari Holdings Co Gross Margin % Related Terms
Hikari Holdings Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hikari Holdings 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 Conglomerates subindustry, Hikari Holdings 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.
Hikari Holdings Co Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hikari Holdings 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.
Hikari Holdings Co (TSE:1445) has a Gross Margin % of 22.64% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hikari Holdings Co and its competitors. This is 15% below median its historical median of 26.62. Over the past decade, Hikari Holdings Co's Gross Margin % has ranged from 20.45 to 35.82.
Is Hikari Holdings Co's Gross Margin % too high?
Hikari Holdings Co's current Gross Margin % of 22.64% is 15% below median its 10-year median of 26.62. Over the past 10 years, this metric has ranged from a low of 20.45 to a high of 35.82. The Conglomerates industry median Gross Margin % is 25.96. Hikari Holdings Co's value of 22.64% is 12.8% below this industry median. Overall, Hikari Holdings Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Hikari Holdings Co's Gross Margin % compare to HON and MMM?
Hikari Holdings Co's Gross Margin % of 22.64% can be compared against companies in the Conglomerates industry. The industry median Gross Margin % is 25.96. Hikari Holdings Co's value of 22.64% is 12.8% below this benchmark. Historically, Hikari Holdings Co's own Gross Margin % has ranged from 20.45 to 35.82 over the past decade. While the company's 10-year median is 26.62 vs. the industry median of 25.96, Hikari Holdings 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 513 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. Hikari Holdings Co's current Gross Margin % of 22.64% is 12.8% 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 Hikari Holdings Co and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Holdings Co's current Gross Margin % is 22.64%, which is 15% below median its own 10-year median of 26.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Holdings Co stock overvalued right now?
Hikari Holdings Co (TSE:1445) has a current Gross Margin % of 22.64%. The stock's GF Value™ is 円4,506.62, compared to a current price of 円2,900.00 — trading 35.7% below its estimated fair value. The current Gross Margin % is 22.64%, which is 15% below median its 10-year median of 26.62 and 12.8% below the Conglomerates industry median of 25.96. Hikari Holdings Co's overall GF Score™ is 16/100 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 Hikari Holdings Co (TSE:1445), the current Gross Margin % is 22.64% as of Feb. 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 Hikari Holdings Co (TSE:1445) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Holdings Co stock appears to be undervalued.
The current stock price of 円2,900.00 is trading 35.7% below its estimated GF Value™ of 円4,506.62.
Key valuation signals for TSE:1445:
Gross Margin %: 22.64% (15% below median its 10-year median of 26.62)
GF Value™: 円4,506.62 vs. price of 円2,900.00 (35.7% below fair value)
Industry Position: 12.8% below the Conglomerates median
No single metric tells the full story. See the TSE:1445 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Holdings Co Ltd is engaged in construction-related businesses with five reportable segments: Tile and Stone Processing and Sales Business, General Building Materials Business, Telecommunications Construction Business, Civil Engineering Work Business, and General Renovation Construction Business. The company provides a wide range of services, including processing and sales of interior and exterior materials, construction work using tiles and stone, telecommunications system design and supervision, public works projects like sewerage and road improvements, and comprehensive renovation work such as tile renovation and ultra-high pressure cleaning. It generates the majority of its revenue from the General Building Materials Business segment.
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