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Kitano ConstructionTSE:1866 -1.33%65 Gross Margin % is 14.61% as of Mar. 2026, which is 19% above its 10-year median of 12.30. GuruFocus rates TSE:1866 with a GF Score™ of 65/100 and a GF Value™ of 円878.18 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,725 Construction companies, Kitano Construction ranks worse than 65.28% on this metric.
The historical rank and industry rank for Kitano Construction's Gross Margin % or its related term are showing as below:
TSE:1866'
s Gross Margin % Range Over the Past 10 Years
Min: 9.65 Med: 12.3 Max: 14.84
Current: 14.84
During the past 13 years, the highestGross Margin % of Kitano Construction was 14.84%. The lowest was 9.65%. And the median was 12.30%.
TSE:1866's Gross Margin % is ranked worse than 65.28% of 1725
companies
in the Construction industry
Industry Median: 20.7
vs TSE:1866: 14.84
Kitano Construction had a gross margin of 14.61% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kitano Construction was 7.60% per year.
Kitano Construction (TSE:1866) 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
Kitano Construction had a gross margin of 14.61% 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.
Kitano Construction Gross Margin % Related Terms
Kitano Construction Gross Margin % Historical Data
* Premium members only.
The historical data trend for Kitano Construction'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:1866 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Kitano Construction'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.
Kitano Construction Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Kitano Construction's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kitano Construction'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.
Kitano Construction (TSE:1866) has a Gross Margin % of 14.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kitano Construction and its competitors. This is 19% above median its historical median of 12.30. Over the past decade, Kitano Construction's Gross Margin % has ranged from 9.65 to 14.84. According to the industry distribution chart, Kitano Construction ranks #1126 out of 1725 companies in the Construction industry, placing it in the top 65.3%.
Is Kitano Construction's Gross Margin % too high?
Kitano Construction's current Gross Margin % of 14.61% is 19% above median its 10-year median of 12.30. Over the past 10 years, this metric has ranged from a low of 9.65 to a high of 14.84. The Construction industry median Gross Margin % is 20.70. Kitano Construction's value of 14.61% is 29.4% below this industry median. Based on the distribution chart, Kitano Construction ranks #1126 out of 1725 companies in the Construction industry, which is below the industry midpoint. Overall, Kitano Construction has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kitano Construction's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Kitano Construction ranks #1126 out of 1725 companies for Gross Margin %. This places Kitano Construction in the lower half of its industry. The industry median Gross Margin % is 20.70. Kitano Construction's value of 14.61% is 29.4% below this benchmark. Historically, Kitano Construction's own Gross Margin % has ranged from 9.65 to 14.84 over the past decade. While the company's 10-year median is 12.30 vs. the industry median of 20.70, Kitano Construction 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 20.70, based on 1,725 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. Kitano Construction's current Gross Margin % of 14.61% is 29.4% 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 Kitano Construction 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. Kitano Construction's current Gross Margin % is 14.61%, which is 19% above median its own 10-year median of 12.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kitano Construction stock overvalued right now?
Based on GuruFocus' analysis, Kitano Construction (TSE:1866) is currently considered Modestly Overvalued. The stock's GF Value™ is 円878.18, compared to a current price of 円1,110.00 — trading 26.4% above its estimated fair value. The current Gross Margin % is 14.61%, which is 19% above median its 10-year median of 12.30 and 29.4% below the Construction industry median of 20.70. Kitano Construction's overall GF Score™ is 65/100 with 4 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 Kitano Construction (TSE:1866), the current Gross Margin % is 14.61% 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 Kitano Construction (TSE:1866) Overvalued in 2026?
Based on GuruFocus' analysis, Kitano Construction stock appears to be overvalued.
The current stock price of 円1,110.00 is trading 26.4% above its estimated GF Value™ of 円878.18.
GuruFocus considers Kitano Construction to be Modestly Overvalued.
Key valuation signals for TSE:1866:
Gross Margin %: 14.61% (19% above median its 10-year median of 12.30)
GF Value™: 円878.18 vs. price of 円1,110.00 (26.4% above fair value)
Industry Position: 29.4% below the Construction median (#1126 of 1725)
No single metric tells the full story. See the TSE:1866 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kitano Construction Corp provides real estate services in Japan. Its business activities include planning, designing, construction management and consulting of construction work and development of urban, regional and resort projects.
65GF 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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