Sato Foods CoTSE:2923 +0.94%73 Gross Margin % is 23.15% as of Apr. 2026, which is 29% below its 10-year median of 32.75. GuruFocus rates TSE:2923 with a GF Score™ of 73/100 and a GF Value™ of 円8,275.62 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,906 Consumer Packaged Goods companies, Sato Foods Co ranks worse than 50.37% on this metric.
Sato Foods Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.6%.
The historical rank and industry rank for Sato Foods Co's Gross Margin % or its related term are showing as below:
TSE:2923'
s Gross Margin % Range Over the Past 10 Years
Min: 24.74 Med: 32.75 Max: 40.56
Current: 26.21
During the past 13 years, the highestGross Margin % of Sato Foods Co was 40.56%. The lowest was 24.74%. And the median was 32.75%.
TSE:2923's Gross Margin % is ranked worse than 50.37% of 1906
companies
in the Consumer Packaged Goods industry
Industry Median: 26.355
vs TSE:2923: 26.21
Sato Foods Co had a gross margin of 23.15% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Sato Foods Co was -6.60% per year.
Sato Foods Co (TSE:2923) 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
Sato Foods Co had a gross margin of 23.15% for the quarter that ended in Apr. 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.
Sato Foods Co Gross Margin % Related Terms
Sato Foods Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sato Foods 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.
For the Packaged Foods subindustry, Sato Foods 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.
Sato Foods Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Sato Foods Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sato Foods 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.
Sato Foods Co (TSE:2923) has a Gross Margin % of 23.15% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sato Foods Co and its competitors. This is 29% below median its historical median of 32.75. Over the past decade, Sato Foods Co's Gross Margin % has ranged from 24.74 to 40.56. According to the industry distribution chart, Sato Foods Co ranks #960 out of 1906 companies in the Consumer Packaged Goods industry, placing it in the top 50.4%.
Is Sato Foods Co's Gross Margin % too high?
Sato Foods Co's current Gross Margin % of 23.15% is 29% below median its 10-year median of 32.75. Over the past 10 years, this metric has ranged from a low of 24.74 to a high of 40.56. The Consumer Packaged Goods industry median Gross Margin % is 26.36. Sato Foods Co's value of 23.15% is 12.2% below this industry median. Based on the distribution chart, Sato Foods Co ranks #960 out of 1906 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Sato Foods Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sato Foods Co's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Sato Foods Co ranks #960 out of 1906 companies for Gross Margin %. This places Sato Foods Co in the lower half of its industry. The industry median Gross Margin % is 26.36. Sato Foods Co's value of 23.15% is 12.2% below this benchmark. Historically, Sato Foods Co's own Gross Margin % has ranged from 24.74 to 40.56 over the past decade. While the company's 10-year median is 32.75 vs. the industry median of 26.36, Sato Foods 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.36, based on 1,906 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. Sato Foods Co's current Gross Margin % of 23.15% is 12.2% 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 Sato Foods Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sato Foods Co's current Gross Margin % is 23.15%, which is 29% below median its own 10-year median of 32.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sato Foods Co stock overvalued right now?
Based on GuruFocus' analysis, Sato Foods Co (TSE:2923) is currently considered Fairly Valued. The stock's GF Value™ is 円8,275.62, compared to a current price of 円8,600.00 — trading 3.9% above its estimated fair value. The current Gross Margin % is 23.15%, which is 29% below median its 10-year median of 32.75 and 12.2% below the Consumer Packaged Goods industry median of 26.36. Sato Foods Co's overall GF Score™ is 73/100 with 5 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 Sato Foods Co (TSE:2923), the current Gross Margin % is 23.15% as of Apr. 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 Sato Foods Co (TSE:2923) Overvalued in 2026?
Based on GuruFocus' analysis, Sato Foods Co stock appears to be overvalued.
The current stock price of 円8,600.00 is trading 3.9% above its estimated GF Value™ of 円8,275.62.
GuruFocus considers Sato Foods Co to be Fairly Valued.
Key valuation signals for TSE:2923:
Gross Margin %: 23.15% (29% below median its 10-year median of 32.75)
GF Value™: 円8,275.62 vs. price of 円8,600.00 (3.9% above fair value)
Industry Position: 12.2% below the Consumer Packaged Goods median (#960 of 1906)
No single metric tells the full story. See the TSE:2923 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sato Foods Co Ltd is engaged in the production and sales of packed mochi and packed cooked rice in Japan. Its packaged rice cakes include Sato sliced rice-cake crisp and slit, Round rice-cake single pack and Sato Kagami Mochi. Its packed rice products include Sato rice, low-protein rice and others.
73GF Score
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