Neo Home Co (TSE:172A) Gross Margin %: 18.22% (As of Jan. 2026) — 13% Below Median


TSE:172A Neo Home Co Ltd TSE:172A
22 GF Score
Price 円2,234.00
! 5 Warning Signs
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What is Neo Home Co Gross Margin %?

Neo Home Co TSE:172A 22 Gross Margin % is 18.22% as of Jan. 2026, which is 13% below its 10-year median of 20.92. GuruFocus rates TSE:172A with a GF Score™ of 22/100. The stock has 5 warning signs investors should review.

Gross Margin % is calculated as gross profit divided by its revenue. Neo Home Co's Gross Profit for the six months ended in Jan. 2026 was 円234 Mil. Neo Home Co's Revenue for the six months ended in Jan. 2026 was 円1,284 Mil. Therefore, Neo Home Co's Gross Margin % for the quarter that ended in Jan. 2026 was 18.22%.


The historical rank and industry rank for Neo Home Co's Gross Margin % or its related term are showing as below:

TSE:172A' s Gross Margin % Range Over the Past 10 Years
Min: 18.11   Med: 20.92   Max: 21.72
Current: 18.11


During the past 4 years, the highest Gross Margin % of Neo Home Co was 21.72%. The lowest was 18.11%. And the median was 20.92%.

TSE:172A's Gross Margin % is not ranked
in the Real Estate industry.
Industry Median: 36.97 vs TSE:172A: 18.11

Neo Home Co had a gross margin of 18.22% for the quarter that ended in Jan. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Neo Home Co was 0.00% per year.


Neo Home Co  (TSE:172A) 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

Neo Home Co had a gross margin of 18.22% for the quarter that ended in Jan. 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.


Neo Home Co Gross Margin % Related Terms


Neo Home Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Neo Home 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.

Neo Home Co Gross Margin % Chart

Neo Home Co Annual Data
Trend Jul22 Jul23 Jul24 Jul25
Gross Margin %
20.66 21.72 21.17 18.45

Neo Home Co Semi-Annual Data
Jul22 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
Gross Margin % Get a 7-Day Free Trial 21.52 20.91 19.19 17.98 18.22

TSE:172A vs : Gross Margin % Comparison

For the Real Estate - Development subindustry, Neo Home 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.


Neo Home Co Gross Margin % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Neo Home Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Neo Home Co's Gross Margin % falls into.


TSE:172A
22GF Score
Neo Home Co Ltd TSE:172A
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Neo Home Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Neo Home Co's Gross Margin for the fiscal year that ended in Jul. 2025 is calculated as

Gross Margin % (A: Jul. 2025 )=Gross Profit (A: Jul. 2025 ) / Revenue (A: Jul. 2025 )
=303.1 / 1643.222
=(Revenue - Cost of Goods Sold) / Revenue
=(1643.222 - 1340.127) / 1643.222
=18.45 %

Neo Home Co's Gross Margin for the quarter that ended in Jan. 2026 is calculated as


Gross Margin % (Q: Jan. 2026 )=Gross Profit (Q: Jan. 2026 ) / Revenue (Q: Jan. 2026 )
=233.9 / 1283.871
=(Revenue - Cost of Goods Sold) / Revenue
=(1283.871 - 1050.01) / 1283.871
=18.22 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 18.22% mean?
Neo Home Co (TSE:172A) has a Gross Margin % of 18.22% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Neo Home Co and its competitors. This is 13% below median its historical median of 20.92. Over the past decade, Neo Home Co's Gross Margin % has ranged from 18.11 to 21.72.
Is Neo Home Co's Gross Margin % too high?
Neo Home Co's current Gross Margin % of 18.22% is 13% below median its 10-year median of 20.92. Over the past 10 years, this metric has ranged from a low of 18.11 to a high of 21.72. The Real Estate industry median Gross Margin % is 36.97. Neo Home Co's value of 18.22% is 50.7% below this industry median. Overall, Neo Home Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Neo Home Co's Gross Margin % compare to ?
Neo Home Co's Gross Margin % of 18.22% can be compared against companies in the Real Estate industry. The industry median Gross Margin % is 36.97. Neo Home Co's value of 18.22% is 50.7% below this benchmark. Historically, Neo Home Co's own Gross Margin % has ranged from 18.11 to 21.72 over the past decade. While the company's 10-year median is 20.92 vs. the industry median of 36.97, Neo Home 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.97, based on 1,641 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. Neo Home Co's current Gross Margin % of 18.22% is 50.7% 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 Neo Home Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neo Home Co's current Gross Margin % is 18.22%, which is 13% below median its own 10-year median of 20.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neo Home Co stock overvalued right now?
Neo Home Co (TSE:172A) has a current Gross Margin % of 18.22%. The current Gross Margin % is 18.22%, which is 13% below median its 10-year median of 20.92 and 50.7% below the Real Estate industry median of 36.97. Neo Home Co's overall GF Score™ is 22/100 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 Neo Home Co (TSE:172A), the current Gross Margin % is 18.22% as of Jan. 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.

Neo Home Co Business Description

Comparable Companies
Address 5-5-10 Tamukae, Kumamoto Minami-ku, Kumamoto, JPN, 862-0962
Neo Home Co Ltd is engaged in designing and selling single-family (detached) homes, mainly planned ones.
22GF Score

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円2,234.00
Price