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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Tokyo Energy & SystemsTSE:1945 -2.41%66 Gross Margin % is 21.79% as of Mar. 2026, which is 73% above its 10-year median of 12.63. GuruFocus rates TSE:1945 with a GF Score™ of 66/100 and a GF Value™ of 円1,226.62 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,725 Construction companies, Tokyo Energy & Systems ranks worse than 64% on this metric.
TSE:1945's Gross Margin % is ranked worse than 64% of 1725
companies
in the Construction industry
Industry Median: 20.7
vs TSE:1945: 15.29
Tokyo Energy & Systems had a gross margin of 21.79% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tokyo Energy & Systems was 2.20% per year.
Tokyo Energy & Systems (TSE:1945) 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
Tokyo Energy & Systems had a gross margin of 21.79% 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.
Tokyo Energy & Systems Gross Margin % Related Terms
Tokyo Energy & Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tokyo Energy & Systems'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:1945 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Tokyo Energy & Systems'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.
Tokyo Energy & Systems Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Tokyo Energy & Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tokyo Energy & Systems'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.
Tokyo Energy & Systems (TSE:1945) has a Gross Margin % of 21.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tokyo Energy & Systems and its competitors. This is 73% above median its historical median of 12.63. Over the past decade, Tokyo Energy & Systems' Gross Margin % has ranged from 11.76 to 15.29. According to the industry distribution chart, Tokyo Energy & Systems ranks #1104 out of 1725 companies in the Construction industry, placing it in the top 64%.
Is Tokyo Energy & Systems' Gross Margin % too high?
Tokyo Energy & Systems' current Gross Margin % of 21.79% is 73% above median its 10-year median of 12.63. Over the past 10 years, this metric has ranged from a low of 11.76 to a high of 15.29. The Construction industry median Gross Margin % is 20.70. Tokyo Energy & Systems' value of 21.79% is 5.3% above this industry median. Based on the distribution chart, Tokyo Energy & Systems ranks #1104 out of 1725 companies in the Construction industry, which is below the industry midpoint. Overall, Tokyo Energy & Systems has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokyo Energy & Systems' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Tokyo Energy & Systems ranks #1104 out of 1725 companies for Gross Margin %. This places Tokyo Energy & Systems in the lower half of its industry. The industry median Gross Margin % is 20.70. Tokyo Energy & Systems' value of 21.79% is 5.3% above this benchmark. Historically, Tokyo Energy & Systems' own Gross Margin % has ranged from 11.76 to 15.29 over the past decade. While the company's 10-year median is 12.63 vs. the industry median of 20.70, Tokyo Energy & Systems has consistently been above 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. Tokyo Energy & Systems's current Gross Margin % of 21.79% is 5.3% above 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 Tokyo Energy & Systems 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. Tokyo Energy & Systems's current Gross Margin % is 21.79%, which is 73% above median its own 10-year median of 12.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Energy & Systems stock overvalued right now?
Based on GuruFocus' analysis, Tokyo Energy & Systems (TSE:1945) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,226.62, compared to a current price of 円1,947.00 — trading 58.7% above its estimated fair value. The current Gross Margin % is 21.79%, which is 73% above median its 10-year median of 12.63 and 5.3% above the Construction industry median of 20.70. Tokyo Energy & Systems' overall GF Score™ is 66/100 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 Tokyo Energy & Systems (TSE:1945), the current Gross Margin % is 21.79% 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 Tokyo Energy & Systems (TSE:1945) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Energy & Systems stock appears to be overvalued.
The current stock price of 円1,947.00 is trading 58.7% above its estimated GF Value™ of 円1,226.62.
GuruFocus considers Tokyo Energy & Systems to be Significantly Overvalued.
Key valuation signals for TSE:1945:
Gross Margin %: 21.79% (73% above median its 10-year median of 12.63)
GF Value™: 円1,226.62 vs. price of 円1,947.00 (58.7% above fair value)
Industry Position: 5.3% above the Construction median (#1104 of 1725)
No single metric tells the full story. See the TSE:1945 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Energy & Systems Inc constructs and maintains electricity generation plants, substations, and other power-related equipment. It also provides equipment for and assist in the construction of solar power generation stations and work to promote other forms of renewable energy. It is also engaged in the construction of much of the electrical equipment used in buildings and factories, as well as telecommunication equipment, and provides a service that dispatches engineers. The company's reportable segment is Facility installation business.
66GF 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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