Kyowa Leather Cloth CoTSE:3553 71 Gross Margin % is 16.71% as of Mar. 2026, which is 8% below its 10-year median of 18.25. GuruFocus rates TSE:3553 with a GF Score™ of 71/100 and a GF Value™ of 円840.39 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,560 Chemicals companies, Kyowa Leather Cloth Co ranks worse than 68.4% on this metric.
TSE:3553's Gross Margin % is ranked worse than 68.4% of 1560
companies
in the Chemicals industry
Industry Median: 23.36
vs TSE:3553: 16.49
Kyowa Leather Cloth Co had a gross margin of 16.71% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kyowa Leather Cloth Co was -1.10% per year.
Kyowa Leather Cloth Co (TSE:3553) 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
Kyowa Leather Cloth Co had a gross margin of 16.71% for the quarter that ended in Mar. 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.
Kyowa Leather Cloth Co Gross Margin % Related Terms
Kyowa Leather Cloth Co Gross Margin % Historical Data
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The historical data trend for Kyowa Leather Cloth 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 Chemicals subindustry, Kyowa Leather Cloth 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.
Kyowa Leather Cloth Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kyowa Leather Cloth Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kyowa Leather Cloth 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.
Kyowa Leather Cloth Co (TSE:3553) has a Gross Margin % of 16.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kyowa Leather Cloth Co and its competitors. This is near median its historical median of 18.25. Over the past decade, Kyowa Leather Cloth Co's Gross Margin % has ranged from 15.89 to 20.87. According to the industry distribution chart, Kyowa Leather Cloth Co ranks #1067 out of 1560 companies in the Chemicals industry, placing it in the top 68.4%.
Is Kyowa Leather Cloth Co's Gross Margin % too high?
Kyowa Leather Cloth Co's current Gross Margin % of 16.71% is near median its 10-year median of 18.25. Over the past 10 years, this metric has ranged from a low of 15.89 to a high of 20.87. The Chemicals industry median Gross Margin % is 23.36. Kyowa Leather Cloth Co's value of 16.71% is 28.5% below this industry median. Based on the distribution chart, Kyowa Leather Cloth Co ranks #1067 out of 1560 companies in the Chemicals industry, which is below the industry midpoint. Overall, Kyowa Leather Cloth Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kyowa Leather Cloth Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Kyowa Leather Cloth Co ranks #1067 out of 1560 companies for Gross Margin %. This places Kyowa Leather Cloth Co in the lower half of its industry. The industry median Gross Margin % is 23.36. Kyowa Leather Cloth Co's value of 16.71% is 28.5% below this benchmark. Historically, Kyowa Leather Cloth Co's own Gross Margin % has ranged from 15.89 to 20.87 over the past decade. While the company's 10-year median is 18.25 vs. the industry median of 23.36, Kyowa Leather Cloth 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 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. Kyowa Leather Cloth Co's current Gross Margin % of 16.71% is 28.5% 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 Kyowa Leather Cloth Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kyowa Leather Cloth Co's current Gross Margin % is 16.71%, which is near median its own 10-year median of 18.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kyowa Leather Cloth Co stock overvalued right now?
Based on GuruFocus' analysis, Kyowa Leather Cloth Co (TSE:3553) is currently considered Fairly Valued. The stock's GF Value™ is 円840.39, compared to a current price of 円865.00 — trading 2.9% above its estimated fair value. The current Gross Margin % is 16.71%, which is near median its 10-year median of 18.25 and 28.5% below the Chemicals industry median of 23.36. Kyowa Leather Cloth Co's overall GF Score™ is 71/100 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 Kyowa Leather Cloth Co (TSE:3553), the current Gross Margin % is 16.71% 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 Kyowa Leather Cloth Co (TSE:3553) Overvalued in 2026?
Based on GuruFocus' analysis, Kyowa Leather Cloth Co stock appears to be overvalued.
The current stock price of 円865.00 is trading 2.9% above its estimated GF Value™ of 円840.39.
GuruFocus considers Kyowa Leather Cloth Co to be Fairly Valued.
Key valuation signals for TSE:3553:
Gross Margin %: 16.71% (near median its 10-year median of 18.25)
GF Value™: 円840.39 vs. price of 円865.00 (2.9% above fair value)
Industry Position: 28.5% below the Chemicals median (#1067 of 1560)
No single metric tells the full story. See the TSE:3553 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kyowa Leather Cloth Co Ltd is a Japan-based chemical manufacturer. The company is mainly engaged in the manufacturing, processing, and sales of various synthetic resin products. It operates in Automotive, Housing and Fashion and lifestyle business divisions. Kyowa offers synthetic leather cover materials for automotive interiors, decorative products like wall covering paper or film, wood paneling for furniture, interior doors and walls, steel laminated decorative film, polyvinyl chloride (PVC) products consisting of handbags, shoes, and accessories.
71GF Score
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