Hokuriku Electrical Construction Co (TSE:1930) 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
Hokuriku Electrical Construction Co had a gross margin of 20.62% for the quarter that ended in Mar. 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.
Hokuriku Electrical Construction Co Gross Margin % Related Terms
Hokuriku Electrical Construction Co Gross Margin % Historical Data
* 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.
Hokuriku Electrical Construction Co Gross Margin % Chart
TSE:1930 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Hokuriku Electrical Construction 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.
Hokuriku Electrical Construction Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Hokuriku Electrical Construction Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hokuriku Electrical Construction 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.
Hokuriku Electrical Construction Co (TSE:1930) has a Gross Margin % of 20.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hokuriku Electrical Construction Co and its competitors. This is 21% above median its historical median of 17.11. Over the past decade, Hokuriku Electrical Construction Co's Gross Margin % has ranged from 15.12 to 18.97. According to the industry distribution chart, Hokuriku Electrical Construction Co ranks #925 out of 1722 companies in the Construction industry, placing it in the top 53.7%.
Is Hokuriku Electrical Construction Co's Gross Margin % too high?
Hokuriku Electrical Construction Co's current Gross Margin % of 20.62% is 21% above median its 10-year median of 17.11. Over the past 10 years, this metric has ranged from a low of 15.12 to a high of 18.97. The Construction industry median Gross Margin % is 20.72. Hokuriku Electrical Construction Co's value of 20.62% is 0.5% below this industry median. Based on the distribution chart, Hokuriku Electrical Construction Co ranks #925 out of 1722 companies in the Construction industry, which is below the industry midpoint. Overall, Hokuriku Electrical Construction Co has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hokuriku Electrical Construction Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Hokuriku Electrical Construction Co ranks #925 out of 1722 companies for Gross Margin %. This places Hokuriku Electrical Construction Co in the lower half of its industry. The industry median Gross Margin % is 20.72. Hokuriku Electrical Construction Co's value of 20.62% is 0.5% below this benchmark. Historically, Hokuriku Electrical Construction Co's own Gross Margin % has ranged from 15.12 to 18.97 over the past decade. While the company's 10-year median is 17.11 vs. the industry median of 20.72, Hokuriku Electrical Construction 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 20.72, based on 1,722 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. Hokuriku Electrical Construction Co's current Gross Margin % of 20.62% is 0.5% 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 Hokuriku Electrical Construction Co and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hokuriku Electrical Construction Co's current Gross Margin % is 20.62%, which is 21% above median its own 10-year median of 17.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hokuriku Electrical Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Hokuriku Electrical Construction Co (TSE:1930) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,401.97, compared to a current price of 円1,632.00 — trading 16.4% above its estimated fair value. The current Gross Margin % is 20.62%, which is 21% above median its 10-year median of 17.11 and 0.5% below the Construction industry median of 20.72. Hokuriku Electrical Construction Co's overall GF Score™ is 75/100 with 2 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 Hokuriku Electrical Construction Co (TSE:1930), the current Gross Margin % is 20.62% 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 Hokuriku Electrical Construction Co (TSE:1930) Overvalued in 2026?
Based on GuruFocus' analysis, Hokuriku Electrical Construction Co stock appears to be overvalued.
The current stock price of 円1,632.00 is trading 16.4% above its estimated GF Value™ of 円1,401.97.
GuruFocus considers Hokuriku Electrical Construction Co to be Modestly Overvalued.
Key valuation signals for TSE:1930:
Gross Margin %: 20.62% (21% above median its 10-year median of 17.11)
GF Value™: 円1,401.97 vs. price of 円1,632.00 (16.4% above fair value)
Industry Position: 0.5% below the Construction median (#925 of 1722)
No single metric tells the full story. See the TSE:1930 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hokuriku Electrical Construction Co Business Description
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