Watanabeto CoTSE:1807 +0.27%62 Gross Margin % is 13.35% as of Mar. 2026, which is 35% above its 10-year median of 9.91. GuruFocus rates TSE:1807 with a GF Score™ of 62/100 and a GF Value™ of 円1,438.24 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,721 Construction companies, Watanabeto Co ranks worse than 79.37% on this metric.
Watanabe Sato Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.7%.
The historical rank and industry rank for Watanabeto Co's Gross Margin % or its related term are showing as below:
TSE:1807'
s Gross Margin % Range Over the Past 10 Years
Min: 7.98 Med: 9.91 Max: 12.17
Current: 10.47
During the past 13 years, the highestGross Margin % of Watanabeto Co was 12.17%. The lowest was 7.98%. And the median was 9.91%.
TSE:1807's Gross Margin % is ranked worse than 79.37% of 1721
companies
in the Construction industry
Industry Median: 20.73
vs TSE:1807: 10.47
Watanabeto Co had a gross margin of 13.35% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Watanabeto Co was -3.70% per year.
Watanabeto Co (TSE:1807) 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
Watanabeto Co had a gross margin of 13.35% 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.
Watanabeto Co Gross Margin % Related Terms
Watanabeto Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Watanabeto 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.
TSE:1807 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Watanabeto 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.
Watanabeto Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Watanabeto Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Watanabeto 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.
Watanabeto Co (TSE:1807) has a Gross Margin % of 13.35% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Watanabeto Co and its competitors. This is 35% above median its historical median of 9.91. Over the past decade, Watanabeto Co's Gross Margin % has ranged from 7.98 to 12.17. According to the industry distribution chart, Watanabeto Co ranks #1366 out of 1721 companies in the Construction industry, placing it in the top 79.4%.
Is Watanabeto Co's Gross Margin % too high?
Watanabeto Co's current Gross Margin % of 13.35% is 35% above median its 10-year median of 9.91. Over the past 10 years, this metric has ranged from a low of 7.98 to a high of 12.17. The Construction industry median Gross Margin % is 20.73. Watanabeto Co's value of 13.35% is 35.6% below this industry median. Based on the distribution chart, Watanabeto Co ranks #1366 out of 1721 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Watanabeto Co has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watanabeto Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Watanabeto Co ranks #1366 out of 1721 companies for Gross Margin %. This places Watanabeto Co in the lower half of its industry. The industry median Gross Margin % is 20.73. Watanabeto Co's value of 13.35% is 35.6% below this benchmark. Historically, Watanabeto Co's own Gross Margin % has ranged from 7.98 to 12.17 over the past decade. While the company's 10-year median is 9.91 vs. the industry median of 20.73, Watanabeto 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 Construction company?
The median Gross Margin % among Construction companies is 20.73, based on 1,721 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. Watanabeto Co's current Gross Margin % of 13.35% is 35.6% 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 Watanabeto Co and its competitors. For the Construction industry, the median Gross Margin % is 20.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watanabeto Co's current Gross Margin % is 13.35%, which is 35% above median its own 10-year median of 9.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watanabeto Co stock overvalued right now?
Based on GuruFocus' analysis, Watanabeto Co (TSE:1807) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,438.24, compared to a current price of 円1,830.00 — trading 27.2% above its estimated fair value. The current Gross Margin % is 13.35%, which is 35% above median its 10-year median of 9.91 and 35.6% below the Construction industry median of 20.73. Watanabeto Co's overall GF Score™ is 62/100 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 Watanabeto Co (TSE:1807), the current Gross Margin % is 13.35% 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 Watanabeto Co (TSE:1807) Overvalued in 2026?
Based on GuruFocus' analysis, Watanabeto Co stock appears to be overvalued.
The current stock price of 円1,830.00 is trading 27.2% above its estimated GF Value™ of 円1,438.24.
GuruFocus considers Watanabeto Co to be Modestly Overvalued.
Key valuation signals for TSE:1807:
Gross Margin %: 13.35% (35% above median its 10-year median of 9.91)
GF Value™: 円1,438.24 vs. price of 円1,830.00 (27.2% above fair value)
Industry Position: 35.6% below the Construction median (#1366 of 1721)
No single metric tells the full story. See the TSE:1807 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watanabe Sato Co Ltd manufactures and distributes construction materials. It is also engaged in the design, manufacturing, rental, and distribution of construction machines and tools and treatment of industrial wastes. It also designs, manufacture, rent and sale machinery and equipment for construction work.
62GF Score
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