Tokai HoldingsTSE:3167 -1.65%70 Gross Margin % is 39.46% as of Mar. 2026, which is 2% below its 10-year median of 40.10. GuruFocus rates TSE:3167 with a GF Score™ of 70/100 and a GF Value™ of 円1,034.56 (Fairly Valued). The stock has 6 warning signs investors should review. Among 513 Conglomerates companies, Tokai Holdings ranks better than 76.02% on this metric.
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
Tokai Holdings had a gross margin of 39.46% 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.
Tokai Holdings Gross Margin % Related Terms
Tokai Holdings Gross Margin % Historical Data
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The historical data trend for Tokai Holdings'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 Conglomerates subindustry, Tokai Holdings'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.
Tokai Holdings Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Tokai Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Holdings'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.
Tokai Holdings (TSE:3167) has a Gross Margin % of 39.46% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tokai Holdings and its competitors. This is near median its historical median of 40.10. Over the past decade, Tokai Holdings' Gross Margin % has ranged from 37.39 to 42.12. According to the industry distribution chart, Tokai Holdings ranks #123 out of 513 companies in the Conglomerates industry, placing it in the top 24%.
Is Tokai Holdings' Gross Margin % too high?
Tokai Holdings' current Gross Margin % of 39.46% is near median its 10-year median of 40.10. Over the past 10 years, this metric has ranged from a low of 37.39 to a high of 42.12. The Conglomerates industry median Gross Margin % is 25.96. Tokai Holdings' value of 39.46% is 52% above this industry median. Based on the distribution chart, Tokai Holdings ranks #123 out of 513 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Tokai Holdings has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tokai Holdings' Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Tokai Holdings ranks #123 out of 513 companies for Gross Margin %. This places Tokai Holdings in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.96. Tokai Holdings' value of 39.46% is 52% above this benchmark. Historically, Tokai Holdings' own Gross Margin % has ranged from 37.39 to 42.12 over the past decade. While the company's 10-year median is 40.10 vs. the industry median of 25.96, Tokai Holdings 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 513 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. Tokai Holdings's current Gross Margin % of 39.46% is 52% 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 Tokai Holdings and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Holdings's current Gross Margin % is 39.46%, which is near median its own 10-year median of 40.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tokai Holdings (TSE:3167) is currently considered Fairly Valued. The stock's GF Value™ is 円1,034.56, compared to a current price of 円1,130.00 — trading 9.2% above its estimated fair value. The current Gross Margin % is 39.46%, which is near median its 10-year median of 40.10 and 52% above the Conglomerates industry median of 25.96. Tokai Holdings' overall GF Score™ is 70/100 with 6 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 Tokai Holdings (TSE:3167), the current Gross Margin % is 39.46% 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 Tokai Holdings (TSE:3167) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Holdings stock appears to be overvalued.
The current stock price of 円1,130.00 is trading 9.2% above its estimated GF Value™ of 円1,034.56.
GuruFocus considers Tokai Holdings to be Fairly Valued.
Key valuation signals for TSE:3167:
Gross Margin %: 39.46% (near median its 10-year median of 40.10)
GF Value™: 円1,034.56 vs. price of 円1,130.00 (9.2% above fair value)
Industry Position: 52% above the Conglomerates median (#123 of 513)
No single metric tells the full story. See the TSE:3167 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Holdings Corp is engaged in miscellaneous business operations. The scope of its activities includes energy, residential real estate and cable television. The energy business relates to the sale of liquefied petroleum gas, liquefied natural gas, oil products, high-pressure gas such as oxygen and nitrogen. The real estate division is responsible for the construction and design of residential buildings and stores. The communication division is engaged in software development, information processing service, optical fiber leasing, data transmission, and the sale of asymmetric digital subscriber line.
70GF Score
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