Mori-Gumi CoTSE:1853 +0.31%67 Gross Margin % is 12.89% as of Mar. 2026, which is 23% above its 10-year median of 10.49. GuruFocus rates TSE:1853 with a GF Score™ of 67/100 and a GF Value™ of 円329.44 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,721 Construction companies, Mori-Gumi Co ranks worse than 79.2% on this metric.
Mori-Gumi Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Mori-Gumi Co's Gross Margin % or its related term are showing as below:
TSE:1853'
s Gross Margin % Range Over the Past 10 Years
Min: 8.78 Med: 10.49 Max: 13.37
Current: 10.51
During the past 13 years, the highestGross Margin % of Mori-Gumi Co was 13.37%. The lowest was 8.78%. And the median was 10.49%.
TSE:1853's Gross Margin % is ranked worse than 79.2% of 1721
companies
in the Construction industry
Industry Median: 20.73
vs TSE:1853: 10.51
Mori-Gumi Co had a gross margin of 12.89% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Mori-Gumi Co was -3.10% per year.
Mori-Gumi Co (TSE:1853) 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
Mori-Gumi Co had a gross margin of 12.89% 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.
Mori-Gumi Co Gross Margin % Related Terms
Mori-Gumi Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Mori-Gumi 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:1853 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Mori-Gumi 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.
Mori-Gumi Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Mori-Gumi Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mori-Gumi 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.
Mori-Gumi Co (TSE:1853) has a Gross Margin % of 12.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mori-Gumi Co and its competitors. This is 23% above median its historical median of 10.49. Over the past decade, Mori-Gumi Co's Gross Margin % has ranged from 8.78 to 13.37. According to the industry distribution chart, Mori-Gumi Co ranks #1363 out of 1721 companies in the Construction industry, placing it in the top 79.2%.
Is Mori-Gumi Co's Gross Margin % too high?
Mori-Gumi Co's current Gross Margin % of 12.89% is 23% above median its 10-year median of 10.49. Over the past 10 years, this metric has ranged from a low of 8.78 to a high of 13.37. The Construction industry median Gross Margin % is 20.73. Mori-Gumi Co's value of 12.89% is 37.8% below this industry median. Based on the distribution chart, Mori-Gumi Co ranks #1363 out of 1721 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Mori-Gumi Co has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mori-Gumi Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Mori-Gumi Co ranks #1363 out of 1721 companies for Gross Margin %. This places Mori-Gumi Co in the lower half of its industry. The industry median Gross Margin % is 20.73. Mori-Gumi Co's value of 12.89% is 37.8% below this benchmark. Historically, Mori-Gumi Co's own Gross Margin % has ranged from 8.78 to 13.37 over the past decade. While the company's 10-year median is 10.49 vs. the industry median of 20.73, Mori-Gumi 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. Mori-Gumi Co's current Gross Margin % of 12.89% is 37.8% 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 Mori-Gumi 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. Mori-Gumi Co's current Gross Margin % is 12.89%, which is 23% above median its own 10-year median of 10.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mori-Gumi Co stock overvalued right now?
Based on GuruFocus' analysis, Mori-Gumi Co (TSE:1853) is currently considered Fairly Valued. The stock's GF Value™ is 円329.44, compared to a current price of 円326.00 — trading 1% below its estimated fair value. The current Gross Margin % is 12.89%, which is 23% above median its 10-year median of 10.49 and 37.8% below the Construction industry median of 20.73. Mori-Gumi Co's overall GF Score™ is 67/100 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 Mori-Gumi Co (TSE:1853), the current Gross Margin % is 12.89% 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 Mori-Gumi Co (TSE:1853) Overvalued in 2026?
Based on GuruFocus' analysis, Mori-Gumi Co stock appears to be undervalued.
The current stock price of 円326.00 is trading 1% below its estimated GF Value™ of 円329.44.
GuruFocus considers Mori-Gumi Co to be Fairly Valued.
Key valuation signals for TSE:1853:
Gross Margin %: 12.89% (23% above median its 10-year median of 10.49)
GF Value™: 円329.44 vs. price of 円326.00 (1% below fair value)
Industry Position: 37.8% below the Construction median (#1363 of 1721)
No single metric tells the full story. See the TSE:1853 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mori-Gumi Co Ltd operates in three divisions - Construction business, which is engaged in civil engineering, architecture, and other general construction work-related businesses; Crushed stone division, which is engaged in the manufacture and sale of crushed stone, crushed sand, etc., and brokerage of transactions.; and Real estate division is engaged in the development, purchase and sale, exchange, and rental of real estate, as well as the agency and brokerage of these businesses.
67GF Score
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