HITO-Communications HoldingsTSE:4433 +0.12%64 Gross Margin % is 20.06% as of Feb. 2026, which is 2% below its 10-year median of 20.48. GuruFocus rates TSE:4433 with a GF Score™ of 64/100 and a GF Value™ of 円1,063.83 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,007 Business Services companies, HITO-Communications Holdings ranks worse than 76.96% 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
HITO-Communications Holdings had a gross margin of 20.06% for the quarter that ended in Feb. 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.
HITO-Communications Holdings Gross Margin % Related Terms
HITO-Communications Holdings Gross Margin % Historical Data
* 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.
TSE:4433 vs KFY, RHI, TNET: Gross Margin % Comparison
For the Staffing & Employment Services subindustry, HITO-Communications 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.
HITO-Communications Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, HITO-Communications Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HITO-Communications 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.
HITO-Communications Holdings (TSE:4433) has a Gross Margin % of 20.06% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HITO-Communications Holdings and its competitors. This is near median its historical median of 20.48. Over the past decade, HITO-Communications Holdings' Gross Margin % has ranged from 16.95 to 24.54. According to the industry distribution chart, HITO-Communications Holdings ranks #775 out of 1007 companies in the Business Services industry, placing it in the top 77%.
Is HITO-Communications Holdings' Gross Margin % too high?
HITO-Communications Holdings' current Gross Margin % of 20.06% is near median its 10-year median of 20.48. Over the past 10 years, this metric has ranged from a low of 16.95 to a high of 24.54. The Business Services industry median Gross Margin % is 34.50. HITO-Communications Holdings' value of 20.06% is 41.9% below this industry median. Based on the distribution chart, HITO-Communications Holdings ranks #775 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, HITO-Communications Holdings has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HITO-Communications Holdings' Gross Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, HITO-Communications Holdings ranks #775 out of 1007 companies for Gross Margin %. This places HITO-Communications Holdings in the lower half of its industry. The industry median Gross Margin % is 34.50. HITO-Communications Holdings' value of 20.06% is 41.9% below this benchmark. Historically, HITO-Communications Holdings' own Gross Margin % has ranged from 16.95 to 24.54 over the past decade. While the company's 10-year median is 20.48 vs. the industry median of 34.50, HITO-Communications Holdings 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 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. HITO-Communications Holdings's current Gross Margin % of 20.06% is 41.9% 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 HITO-Communications Holdings and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HITO-Communications Holdings's current Gross Margin % is 20.06%, which is near median its own 10-year median of 20.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HITO-Communications Holdings stock overvalued right now?
Based on GuruFocus' analysis, HITO-Communications Holdings (TSE:4433) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,063.83, compared to a current price of 円857.00 — trading 19.4% below its estimated fair value. The current Gross Margin % is 20.06%, which is near median its 10-year median of 20.48 and 41.9% below the Business Services industry median of 34.50. HITO-Communications Holdings' 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 HITO-Communications Holdings (TSE:4433), the current Gross Margin % is 20.06% 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 HITO-Communications Holdings (TSE:4433) Overvalued in 2026?
Based on GuruFocus' analysis, HITO-Communications Holdings stock appears to be undervalued.
The current stock price of 円857.00 is trading 19.4% below its estimated GF Value™ of 円1,063.83.
GuruFocus considers HITO-Communications Holdings to be Modestly Undervalued.
Key valuation signals for TSE:4433:
Gross Margin %: 20.06% (near median its 10-year median of 20.48)
GF Value™: 円1,063.83 vs. price of 円857.00 (19.4% below fair value)
Industry Position: 41.9% below the Business Services median (#775 of 1007)
No single metric tells the full story. See the TSE:4433 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HITO-Communications Holdings Inc is engaged in business outsourcing industry placement and pay the general worker dispatching undertaking. Its services include Sales Outsourcing, Sales Promotion, Staffing services, and Tourism Staffing services among others.
64GF Score
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