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Chugai Ro CoTSE:1964 +1.38%76 Gross Margin % is 26.98% as of Mar. 2026, which is 38% above its 10-year median of 19.62. GuruFocus rates TSE:1964 with a GF Score™ of 76/100 and a GF Value™ of 円4,091.06 (Fairly Valued). The stock has 2 warning signs investors should review. Among 3,002 Industrial Products companies, Chugai Ro Co ranks worse than 62.39% on this metric.
Chugai Ro Co (TSE:1964) 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
Chugai Ro Co had a gross margin of 26.98% 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.
Chugai Ro Co Gross Margin % Related Terms
Chugai Ro Co Gross Margin % Historical Data
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The historical data trend for Chugai Ro 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:1964 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Chugai Ro 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.
Chugai Ro Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Chugai Ro Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chugai Ro 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.
Chugai Ro Co (TSE:1964) has a Gross Margin % of 26.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chugai Ro Co and its competitors. This is 38% above median its historical median of 19.62. Over the past decade, Chugai Ro Co's Gross Margin % has ranged from 14.00 to 22.48. According to the industry distribution chart, Chugai Ro Co ranks #1873 out of 3002 companies in the Industrial Products industry, placing it in the top 62.4%.
Is Chugai Ro Co's Gross Margin % too high?
Chugai Ro Co's current Gross Margin % of 26.98% is 38% above median its 10-year median of 19.62. Over the past 10 years, this metric has ranged from a low of 14.00 to a high of 22.48. The Industrial Products industry median Gross Margin % is 26.88. Chugai Ro Co's value of 26.98% is 0.4% above this industry median. Based on the distribution chart, Chugai Ro Co ranks #1873 out of 3002 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Chugai Ro Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chugai Ro Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Chugai Ro Co ranks #1873 out of 3002 companies for Gross Margin %. This places Chugai Ro Co in the lower half of its industry. The industry median Gross Margin % is 26.88. Chugai Ro Co's value of 26.98% is 0.4% above this benchmark. Historically, Chugai Ro Co's own Gross Margin % has ranged from 14.00 to 22.48 over the past decade. While the company's 10-year median is 19.62 vs. the industry median of 26.88, Chugai Ro Co 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.88, based on 3,002 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. Chugai Ro Co's current Gross Margin % of 26.98% is 0.4% 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 Chugai Ro Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chugai Ro Co's current Gross Margin % is 26.98%, which is 38% above median its own 10-year median of 19.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chugai Ro Co stock overvalued right now?
Based on GuruFocus' analysis, Chugai Ro Co (TSE:1964) is currently considered Fairly Valued. The stock's GF Value™ is 円4,091.06, compared to a current price of 円4,050.00 — trading 1% below its estimated fair value. The current Gross Margin % is 26.98%, which is 38% above median its 10-year median of 19.62 and 0.4% above the Industrial Products industry median of 26.88. Chugai Ro Co's overall GF Score™ is 76/100 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 Chugai Ro Co (TSE:1964), the current Gross Margin % is 26.98% 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 Chugai Ro Co (TSE:1964) Overvalued in 2026?
Based on GuruFocus' analysis, Chugai Ro Co stock appears to be undervalued.
The current stock price of 円4,050.00 is trading 1% below its estimated GF Value™ of 円4,091.06.
GuruFocus considers Chugai Ro Co to be Fairly Valued.
Key valuation signals for TSE:1964:
Gross Margin %: 26.98% (38% above median its 10-year median of 19.62)
GF Value™: 円4,091.06 vs. price of 円4,050.00 (1% below fair value)
Industry Position: 0.4% above the Industrial Products median (#1873 of 3002)
No single metric tells the full story. See the TSE:1964 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chugai Ro Co Ltd is engaged in the development of technologies in the thermal technology field. The company operates through three segments namely Energy, Environmental preservation, and Information or communications. It offers various products including heat treatment furnaces for automobile machine parts, steel and nonferrous-metal heating furnaces, gas burner, film coating and drying equipment and environmental equipment and others.
76GF Score
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