Kawasaki Geological Engineering Co (TSE:4673) 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
Kawasaki Geological Engineering Co had a gross margin of 23.95% for the quarter that ended in Nov. 2025 => 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.
Kawasaki Geological Engineering Co Gross Margin % Related Terms
Kawasaki Geological Engineering Co 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.
Kawasaki Geological Engineering Co Gross Margin % Chart
TSE:4673 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Kawasaki Geological Engineering 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.
Kawasaki Geological Engineering Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Kawasaki Geological Engineering Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kawasaki Geological Engineering 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.
Kawasaki Geological Engineering Co (TSE:4673) has a Gross Margin % of 23.95% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kawasaki Geological Engineering Co and its competitors. This is 15% below median its historical median of 28.06. Over the past decade, Kawasaki Geological Engineering Co's Gross Margin % has ranged from 25.03 to 30.31. According to the industry distribution chart, Kawasaki Geological Engineering Co ranks #710 out of 1721 companies in the Construction industry, placing it in the top 41.3%.
Is Kawasaki Geological Engineering Co's Gross Margin % too high?
Kawasaki Geological Engineering Co's current Gross Margin % of 23.95% is 15% below median its 10-year median of 28.06. Over the past 10 years, this metric has ranged from a low of 25.03 to a high of 30.31. The Construction industry median Gross Margin % is 20.73. Kawasaki Geological Engineering Co's value of 23.95% is 15.5% above this industry median. Based on the distribution chart, Kawasaki Geological Engineering Co ranks #710 out of 1721 companies in the Construction industry, which is above the industry midpoint. Overall, Kawasaki Geological Engineering Co has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawasaki Geological Engineering Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Kawasaki Geological Engineering Co ranks #710 out of 1721 companies for Gross Margin %. This puts Kawasaki Geological Engineering Co in the upper half of its industry. The industry median Gross Margin % is 20.73. Kawasaki Geological Engineering Co's value of 23.95% is 15.5% above this benchmark. Historically, Kawasaki Geological Engineering Co's own Gross Margin % has ranged from 25.03 to 30.31 over the past decade. While the company's 10-year median is 28.06 vs. the industry median of 20.73, Kawasaki Geological Engineering Co 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 Construction company?
The median Gross Margin % among Construction companies is 20.73, based on 1,721 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. Kawasaki Geological Engineering Co's current Gross Margin % of 23.95% is 15.5% 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 Kawasaki Geological Engineering Co and its competitors. For the Construction industry, the median Gross Margin % is 20.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawasaki Geological Engineering Co's current Gross Margin % is 23.95%, which is 15% below median its own 10-year median of 28.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawasaki Geological Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Kawasaki Geological Engineering Co (TSE:4673) is currently considered Modestly Overvalued. The stock's GF Value™ is 円3,842.55, compared to a current price of 円5,010.00 — trading 30.4% above its estimated fair value. The current Gross Margin % is 23.95%, which is 15% below median its 10-year median of 28.06 and 15.5% above the Construction industry median of 20.73. Kawasaki Geological Engineering Co's overall GF Score™ is 67/100 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 Kawasaki Geological Engineering Co (TSE:4673), the current Gross Margin % is 23.95% as of Nov. 2025. 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 Kawasaki Geological Engineering Co (TSE:4673) Overvalued in 2026?
Based on GuruFocus' analysis, Kawasaki Geological Engineering Co stock appears to be overvalued.
The current stock price of 円5,010.00 is trading 30.4% above its estimated GF Value™ of 円3,842.55.
GuruFocus considers Kawasaki Geological Engineering Co to be Modestly Overvalued.
Key valuation signals for TSE:4673:
Gross Margin %: 23.95% (15% below median its 10-year median of 28.06)
GF Value™: 円3,842.55 vs. price of 円5,010.00 (30.4% above fair value)
Industry Position: 15.5% above the Construction median (#710 of 1721)
No single metric tells the full story. See the TSE:4673 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawasaki Geological Engineering Co Business Description
Kawasaki Geological Engineering Co Ltd is a Japan based independent consulting firm on geological engineering in Japan. It provides the geological analysis of the land. The company contributes to the development of infrastructures in governmental and private sectors, as well as in natural resources.
67GF Score
Get the complete analysis for TSE:4673
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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