TomoegawaTSE:3878 +0.77%64 Gross Margin % is 22.43% as of Mar. 2026, which is 13% above its 10-year median of 19.82. GuruFocus rates TSE:3878 with a GF Score™ of 64/100 and a GF Value™ of 円818.95 (Fairly Valued). The stock has 4 warning signs investors should review. Among 279 Forest Products companies, Tomoegawa ranks better than 58.42% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Tomoegawa's Gross Profit for the
six
months ended in Mar. 2026 was 円4,125 Mil. Tomoegawa's Revenue for the
six
months ended in Mar. 2026 was 円18,391 Mil. Therefore, Tomoegawa's Gross Margin % for the quarter that ended in Mar. 2026 was 22.43%.
The historical rank and industry rank for Tomoegawa's Gross Margin % or its related term are showing as below:
TSE:3878'
s Gross Margin % Range Over the Past 10 Years
Min: 16.21 Med: 19.82 Max: 23.61
Current: 23.61
During the past 13 years, the highestGross Margin % of Tomoegawa was 23.61%. The lowest was 16.21%. And the median was 19.82%.
TSE:3878's Gross Margin % is ranked better than 58.42% of 279
companies
in the Forest Products industry
Industry Median: 19.05
vs TSE:3878: 23.61
Tomoegawa had a gross margin of 22.43% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tomoegawa was 6.60% per year.
Tomoegawa (TSE:3878) 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
Tomoegawa had a gross margin of 22.43% 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.
Tomoegawa Gross Margin % Related Terms
Tomoegawa Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tomoegawa'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 Paper & Paper Products subindustry, Tomoegawa'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.
Tomoegawa Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Tomoegawa's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tomoegawa'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.
Tomoegawa (TSE:3878) has a Gross Margin % of 22.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tomoegawa and its competitors. This is 13% above median its historical median of 19.82. Over the past decade, Tomoegawa's Gross Margin % has ranged from 16.21 to 23.61. According to the industry distribution chart, Tomoegawa ranks #116 out of 279 companies in the Forest Products industry, placing it in the top 41.6%.
Is Tomoegawa's Gross Margin % too high?
Tomoegawa's current Gross Margin % of 22.43% is 13% above median its 10-year median of 19.82. Over the past 10 years, this metric has ranged from a low of 16.21 to a high of 23.61. The Forest Products industry median Gross Margin % is 19.05. Tomoegawa's value of 22.43% is 17.7% above this industry median. Based on the distribution chart, Tomoegawa ranks #116 out of 279 companies in the Forest Products industry, which is above the industry midpoint. Overall, Tomoegawa has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tomoegawa's Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Tomoegawa ranks #116 out of 279 companies for Gross Margin %. This puts Tomoegawa in the upper half of its industry. The industry median Gross Margin % is 19.05. Tomoegawa's value of 22.43% is 17.7% above this benchmark. Historically, Tomoegawa's own Gross Margin % has ranged from 16.21 to 23.61 over the past decade. While the company's 10-year median is 19.82 vs. the industry median of 19.05, Tomoegawa 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 19.05, based on 279 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. Tomoegawa's current Gross Margin % of 22.43% is 17.7% 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 Tomoegawa and its competitors. For the Forest Products industry, the median Gross Margin % is 19.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tomoegawa's current Gross Margin % is 22.43%, which is 13% above median its own 10-year median of 19.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tomoegawa stock overvalued right now?
Based on GuruFocus' analysis, Tomoegawa (TSE:3878) is currently considered Fairly Valued. The stock's GF Value™ is 円818.95, compared to a current price of 円787.00 — trading 3.9% below its estimated fair value. The current Gross Margin % is 22.43%, which is 13% above median its 10-year median of 19.82 and 17.7% above the Forest Products industry median of 19.05. Tomoegawa's overall GF Score™ is 64/100 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 Tomoegawa (TSE:3878), the current Gross Margin % is 22.43% 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 Tomoegawa (TSE:3878) Overvalued in 2026?
Based on GuruFocus' analysis, Tomoegawa stock appears to be undervalued.
The current stock price of 円787.00 is trading 3.9% below its estimated GF Value™ of 円818.95.
GuruFocus considers Tomoegawa to be Fairly Valued.
Key valuation signals for TSE:3878:
Gross Margin %: 22.43% (13% above median its 10-year median of 19.82)
GF Value™: 円818.95 vs. price of 円787.00 (3.9% below fair value)
Industry Position: 17.7% above the Forest Products median (#116 of 279)
No single metric tells the full story. See the TSE:3878 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tomoegawa Corp manufactures, processes, and sells electronics parts, display parts, fine particles, functional sheets, and specialty paper products. It offers clear hard coat films for screen protection of mobile devices; adhesive tapes for circuit boards; and lids for hermetic seal package, as well as electrostatic chuck for LSI and LCD manufacturing process. The company also provides display component materials; and display film products. It offers fine particle materials, such as magnetic toners, non-magnetic toners, full color toners; information printing materials comprising inkjet; and special fiber sheets, including stainless fiber sheets, fluorine fiber sheets. Further, it provides ultra-lightweight printing papers; and insulating papers, conductive papers, absorbing papers.
64GF Score
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