MERFTSE:3168 +1.08%51 Gross Margin % is 8.43% as of Feb. 2026, which is 168% above its 10-year median of 3.15. GuruFocus rates TSE:3168 with a GF Score™ of 51/100 and a GF Value™ of 円576.39 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 729 Metals & Mining companies, MERF ranks worse than 82.3% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. MERF's Gross Profit for the
six
months ended in Feb. 2026 was 円3,842 Mil. MERF's Revenue for the
six
months ended in Feb. 2026 was 円45,592 Mil. Therefore, MERF's Gross Margin % for the quarter that ended in Feb. 2026 was 8.43%.
Warning Sign:
MERF Inc gross margin has been in long-term decline. The average rate of decline per year is -11.9%.
The historical rank and industry rank for MERF's Gross Margin % or its related term are showing as below:
TSE:3168'
s Gross Margin % Range Over the Past 10 Years
Min: 1.18 Med: 3.15 Max: 7.37
Current: 6.2
During the past 13 years, the highestGross Margin % of MERF was 7.37%. The lowest was 1.18%. And the median was 3.15%.
TSE:3168's Gross Margin % is ranked worse than 82.3% of 729
companies
in the Metals & Mining industry
Industry Median: 26.15
vs TSE:3168: 6.20
MERF had a gross margin of 8.43% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for MERF was -11.90% per year.
MERF (TSE:3168) 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
MERF had a gross margin of 8.43% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
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.
MERF Gross Margin % Related Terms
MERF Gross Margin % Historical Data
* Premium members only.
The historical data trend for MERF'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 Other Industrial Metals & Mining subindustry, MERF'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.
MERF Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, MERF's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MERF'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.
MERF (TSE:3168) has a Gross Margin % of 8.43% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on MERF and its competitors. This is 168% above median its historical median of 3.15. Over the past decade, MERF's Gross Margin % has ranged from 1.18 to 7.37. According to the industry distribution chart, MERF ranks #600 out of 729 companies in the Metals & Mining industry, placing it in the top 82.3%.
Is MERF's Gross Margin % too high?
MERF's current Gross Margin % of 8.43% is 168% above median its 10-year median of 3.15. Over the past 10 years, this metric has ranged from a low of 1.18 to a high of 7.37. The Metals & Mining industry median Gross Margin % is 26.15. MERF's value of 8.43% is 67.8% below this industry median. Based on the distribution chart, MERF ranks #600 out of 729 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, MERF has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MERF's Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, MERF ranks #600 out of 729 companies for Gross Margin %. This places MERF in the lower half of its industry. The industry median Gross Margin % is 26.15. MERF's value of 8.43% is 67.8% below this benchmark. Historically, MERF's own Gross Margin % has ranged from 1.18 to 7.37 over the past decade. While the company's 10-year median is 3.15 vs. the industry median of 26.15, MERF 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.15, based on 729 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. MERF's current Gross Margin % of 8.43% is 67.8% 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 MERF and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MERF's current Gross Margin % is 8.43%, which is 168% above median its own 10-year median of 3.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MERF stock overvalued right now?
Based on GuruFocus' analysis, MERF (TSE:3168) is currently considered Significantly Overvalued. The stock's GF Value™ is 円576.39, compared to a current price of 円1,215.00 — trading 110.8% above its estimated fair value. The current Gross Margin % is 8.43%, which is 168% above median its 10-year median of 3.15 and 67.8% below the Metals & Mining industry median of 26.15. MERF's overall GF Score™ is 51/100 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 MERF (TSE:3168), the current Gross Margin % is 8.43% as of Feb. 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 MERF (TSE:3168) Overvalued in 2026?
Based on GuruFocus' analysis, MERF stock appears to be overvalued.
The current stock price of 円1,215.00 is trading 110.8% above its estimated GF Value™ of 円576.39.
GuruFocus considers MERF to be Significantly Overvalued.
Key valuation signals for TSE:3168:
Gross Margin %: 8.43% (168% above median its 10-year median of 3.15)
GF Value™: 円576.39 vs. price of 円1,215.00 (110.8% above fair value)
Industry Position: 67.8% below the Metals & Mining median (#600 of 729)
No single metric tells the full story. See the TSE:3168 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MERF Inc is engaged in recycling non-ferrous metals, focusing on copper and copper alloys. Its business activities are divided into two main segments: the Ingot Business, which involves the manufacturing of copper alloy ingots, and the Metal Recycling Raw Materials Business, which is engaged in metal recycling. It is also involved in the manufacturing and selling of art and craft products segment.
51GF Score
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