Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Sumitomo Rubber IndustriesTSE:5110 +1.36%66 Gross Margin % is 30.99% as of Mar. 2026, which is 10% above its 10-year median of 28.18. GuruFocus rates TSE:5110 with a GF Score™ of 66/100 and a GF Value™ of 円1,437.03 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,309 Vehicles & Parts companies, Sumitomo Rubber Industries ranks better than 53.71% 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
Sumitomo Rubber Industries had a gross margin of 30.99% 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.
Sumitomo Rubber Industries Gross Margin % Related Terms
Sumitomo Rubber Industries 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.
For the Auto Parts subindustry, Sumitomo Rubber Industries'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.
Sumitomo Rubber Industries Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Rubber Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sumitomo Rubber Industries'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.
Sumitomo Rubber Industries (TSE:5110) has a Gross Margin % of 30.99% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sumitomo Rubber Industries and its competitors. This is 10% above median its historical median of 28.18. Over the past decade, Sumitomo Rubber Industries' Gross Margin % has ranged from 18.83 to 33.97. According to the industry distribution chart, Sumitomo Rubber Industries ranks #606 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 46.3%.
Is Sumitomo Rubber Industries' Gross Margin % too high?
Sumitomo Rubber Industries' current Gross Margin % of 30.99% is 10% above median its 10-year median of 28.18. Over the past 10 years, this metric has ranged from a low of 18.83 to a high of 33.97. The Vehicles & Parts industry median Gross Margin % is 19.88. Sumitomo Rubber Industries' value of 30.99% is 55.9% above this industry median. Based on the distribution chart, Sumitomo Rubber Industries ranks #606 out of 1309 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Sumitomo Rubber Industries has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Rubber Industries' Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Rubber Industries ranks #606 out of 1309 companies for Gross Margin %. This puts Sumitomo Rubber Industries in the upper half of its industry. The industry median Gross Margin % is 19.88. Sumitomo Rubber Industries' value of 30.99% is 55.9% above this benchmark. Historically, Sumitomo Rubber Industries' own Gross Margin % has ranged from 18.83 to 33.97 over the past decade. While the company's 10-year median is 28.18 vs. the industry median of 19.88, Sumitomo Rubber Industries 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.88, based on 1,309 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. Sumitomo Rubber Industries's current Gross Margin % of 30.99% is 55.9% 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 Sumitomo Rubber Industries and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Rubber Industries's current Gross Margin % is 30.99%, which is 10% above median its own 10-year median of 28.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Rubber Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Rubber Industries (TSE:5110) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,437.03, compared to a current price of 円2,271.00 — trading 58% above its estimated fair value. The current Gross Margin % is 30.99%, which is 10% above median its 10-year median of 28.18 and 55.9% above the Vehicles & Parts industry median of 19.88. Sumitomo Rubber Industries' overall GF Score™ is 66/100 with 7 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 Sumitomo Rubber Industries (TSE:5110), the current Gross Margin % is 30.99% 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 Sumitomo Rubber Industries (TSE:5110) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Rubber Industries stock appears to be overvalued.
The current stock price of 円2,271.00 is trading 58% above its estimated GF Value™ of 円1,437.03.
GuruFocus considers Sumitomo Rubber Industries to be Significantly Overvalued.
Key valuation signals for TSE:5110:
Gross Margin %: 30.99% (10% above median its 10-year median of 28.18)
GF Value™: 円1,437.03 vs. price of 円2,271.00 (58% above fair value)
Industry Position: 55.9% above the Vehicles & Parts median (#606 of 1309)
No single metric tells the full story. See the TSE:5110 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Rubber Industries Ltd makes and sells rubber tires, sports equipment, and other products in three segments based on product type. The tire segment, which generates the majority of revenue, sells rubber tires for automobiles and motorcycles under the Dunlop and Falken brand names. The sports segment sells golf, tennis, and fitness equipment under the Srixon, XXIO, Cleveland, and Dunlop brand names. The industrial and other products segment sells rubber parts for printers, artificial turf for sporting use, floor coating materials, portable ramps, gloves, tubes, and valves. The majority of revenue comes from Japan than any other region.
66GF Score
Get the complete analysis for TSE:5110
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:5110 has been successfully added to your 
