Asaka Riken CoTSE:5724 +5.76%49 Gross Margin % is 36.84% as of Mar. 2026, which is 70% above its 10-year median of 21.64. GuruFocus rates TSE:5724 with a GF Score™ of 49/100 and a GF Value™ of 円1,266.02 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 727 Metals & Mining companies, Asaka Riken Co ranks better than 58.87% on this metric.
The historical rank and industry rank for Asaka Riken Co's Gross Margin % or its related term are showing as below:
TSE:5724'
s Gross Margin % Range Over the Past 10 Years
Min: 15.76 Med: 21.64 Max: 35
Current: 35
During the past 13 years, the highestGross Margin % of Asaka Riken Co was 35.00%. The lowest was 15.76%. And the median was 21.64%.
TSE:5724's Gross Margin % is ranked better than 58.87% of 727
companies
in the Metals & Mining industry
Industry Median: 26.2
vs TSE:5724: 35.00
Asaka Riken Co had a gross margin of 36.84% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Asaka Riken Co was 9.10% per year.
Asaka Riken Co (TSE:5724) 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
Asaka Riken Co had a gross margin of 36.84% 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.
Asaka Riken Co Gross Margin % Related Terms
Asaka Riken Co Gross Margin % Historical Data
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The historical data trend for Asaka Riken 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.
Asaka Riken Co Gross Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Asaka Riken 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.
Asaka Riken Co Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Asaka Riken Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Asaka Riken 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.
Asaka Riken Co (TSE:5724) has a Gross Margin % of 36.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Asaka Riken Co and its competitors. This is 70% above median its historical median of 21.64. Over the past decade, Asaka Riken Co's Gross Margin % has ranged from 15.76 to 35.00. According to the industry distribution chart, Asaka Riken Co ranks #299 out of 727 companies in the Metals & Mining industry, placing it in the top 41.1%.
Is Asaka Riken Co's Gross Margin % too high?
Asaka Riken Co's current Gross Margin % of 36.84% is 70% above median its 10-year median of 21.64. Over the past 10 years, this metric has ranged from a low of 15.76 to a high of 35.00. The Metals & Mining industry median Gross Margin % is 26.20. Asaka Riken Co's value of 36.84% is 40.6% above this industry median. Based on the distribution chart, Asaka Riken Co ranks #299 out of 727 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Asaka Riken Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asaka Riken Co's Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Asaka Riken Co ranks #299 out of 727 companies for Gross Margin %. This puts Asaka Riken Co in the upper half of its industry. The industry median Gross Margin % is 26.20. Asaka Riken Co's value of 36.84% is 40.6% above this benchmark. Historically, Asaka Riken Co's own Gross Margin % has ranged from 15.76 to 35.00 over the past decade. While the company's 10-year median is 21.64 vs. the industry median of 26.20, Asaka Riken 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.20, based on 727 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. Asaka Riken Co's current Gross Margin % of 36.84% is 40.6% 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 Asaka Riken Co and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asaka Riken Co's current Gross Margin % is 36.84%, which is 70% above median its own 10-year median of 21.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asaka Riken Co stock overvalued right now?
Based on GuruFocus' analysis, Asaka Riken Co (TSE:5724) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,266.02, compared to a current price of 円2,681.00 — trading 111.8% above its estimated fair value. The current Gross Margin % is 36.84%, which is 70% above median its 10-year median of 21.64 and 40.6% above the Metals & Mining industry median of 26.20. Asaka Riken Co's overall GF Score™ is 49/100 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 Asaka Riken Co (TSE:5724), the current Gross Margin % is 36.84% 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 Asaka Riken Co (TSE:5724) Overvalued in 2026?
Based on GuruFocus' analysis, Asaka Riken Co stock appears to be overvalued.
The current stock price of 円2,681.00 is trading 111.8% above its estimated GF Value™ of 円1,266.02.
GuruFocus considers Asaka Riken Co to be Significantly Overvalued.
Key valuation signals for TSE:5724:
Gross Margin %: 36.84% (70% above median its 10-year median of 21.64)
GF Value™: 円1,266.02 vs. price of 円2,681.00 (111.8% above fair value)
Industry Position: 40.6% above the Metals & Mining median (#299 of 727)
No single metric tells the full story. See the TSE:5724 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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