Asahi Kogyosha CoTSE:1975 -4.12%66 Gross Margin % is 23.15% as of Mar. 2026, which is 89% above its 10-year median of 12.27. GuruFocus rates TSE:1975 with a GF Score™ of 66/100 and a GF Value™ of 円2,081.02 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,718 Construction companies, Asahi Kogyosha Co ranks worse than 50.47% on this metric.
The historical rank and industry rank for Asahi Kogyosha Co's Gross Margin % or its related term are showing as below:
TSE:1975'
s Gross Margin % Range Over the Past 10 Years
Min: 9.91 Med: 12.27 Max: 20.46
Current: 20.46
During the past 13 years, the highestGross Margin % of Asahi Kogyosha Co was 20.46%. The lowest was 9.91%. And the median was 12.27%.
TSE:1975's Gross Margin % is ranked worse than 50.47% of 1718
companies
in the Construction industry
Industry Median: 20.785
vs TSE:1975: 20.46
Asahi Kogyosha Co had a gross margin of 23.15% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Asahi Kogyosha Co was 11.20% per year.
Asahi Kogyosha Co (TSE:1975) 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
Asahi Kogyosha Co had a gross margin of 23.15% 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.
Asahi Kogyosha Co Gross Margin % Related Terms
Asahi Kogyosha Co Gross Margin % Historical Data
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The historical data trend for Asahi Kogyosha 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:1975 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Asahi Kogyosha 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.
Asahi Kogyosha Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Asahi Kogyosha Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Asahi Kogyosha 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.
Asahi Kogyosha Co (TSE:1975) has a Gross Margin % of 23.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Asahi Kogyosha Co and its competitors. This is 89% above median its historical median of 12.27. Over the past decade, Asahi Kogyosha Co's Gross Margin % has ranged from 9.91 to 20.46. According to the industry distribution chart, Asahi Kogyosha Co ranks #867 out of 1718 companies in the Construction industry, placing it in the top 50.5%.
Is Asahi Kogyosha Co's Gross Margin % too high?
Asahi Kogyosha Co's current Gross Margin % of 23.15% is 89% above median its 10-year median of 12.27. Over the past 10 years, this metric has ranged from a low of 9.91 to a high of 20.46. The Construction industry median Gross Margin % is 20.79. Asahi Kogyosha Co's value of 23.15% is 11.4% above this industry median. Based on the distribution chart, Asahi Kogyosha Co ranks #867 out of 1718 companies in the Construction industry, which is below the industry midpoint. Overall, Asahi Kogyosha Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asahi Kogyosha Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Asahi Kogyosha Co ranks #867 out of 1718 companies for Gross Margin %. This places Asahi Kogyosha Co in the lower half of its industry. The industry median Gross Margin % is 20.79. Asahi Kogyosha Co's value of 23.15% is 11.4% above this benchmark. Historically, Asahi Kogyosha Co's own Gross Margin % has ranged from 9.91 to 20.46 over the past decade. While the company's 10-year median is 12.27 vs. the industry median of 20.79, Asahi Kogyosha 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 a Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,718 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. Asahi Kogyosha Co's current Gross Margin % of 23.15% is 11.4% 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 Asahi Kogyosha Co and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asahi Kogyosha Co's current Gross Margin % is 23.15%, which is 89% above median its own 10-year median of 12.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asahi Kogyosha Co stock overvalued right now?
Based on GuruFocus' analysis, Asahi Kogyosha Co (TSE:1975) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,081.02, compared to a current price of 円4,300.00 — trading 106.6% above its estimated fair value. The current Gross Margin % is 23.15%, which is 89% above median its 10-year median of 12.27 and 11.4% above the Construction industry median of 20.79. Asahi Kogyosha Co's overall GF Score™ is 66/100 with 1 warning sign 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 Asahi Kogyosha Co (TSE:1975), the current Gross Margin % is 23.15% 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 Asahi Kogyosha Co (TSE:1975) Overvalued in 2026?
Based on GuruFocus' analysis, Asahi Kogyosha Co stock appears to be overvalued.
The current stock price of 円4,300.00 is trading 106.6% above its estimated GF Value™ of 円2,081.02.
GuruFocus considers Asahi Kogyosha Co to be Significantly Overvalued.
Key valuation signals for TSE:1975:
Gross Margin %: 23.15% (89% above median its 10-year median of 12.27)
GF Value™: 円2,081.02 vs. price of 円4,300.00 (106.6% above fair value)
Industry Position: 11.4% above the Construction median (#867 of 1718)
No single metric tells the full story. See the TSE:1975 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asahi Kogyosha Co Ltd is a Japan-based company. It mainly designs, supervises, and constructs air conditioning and sanitary equipment. Along with its subsidiaries, the company operates in the following reportable segments; Facility construction and Equipment manufacturing and sales. A majority of its revenue is derived from the facility construction business, which is involved in the planning, design, and construction of air conditioning, water supply, drainage, and sanitary facilities. The equipment manufacturing and sales business is engaged in the manufacturing and sale of environmental equipment for the semiconductor, FPD, and electronics industries and also manufactures air conditioning-related equipment in cooperation with construction companies.
66GF Score
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