Hirakawa HewtechTSE:5821 -3.85%71 Gross Margin % is 25.57% as of Mar. 2026, which is 6% above its 10-year median of 24.19. GuruFocus rates TSE:5821 with a GF Score™ of 71/100 and a GF Value™ of 円1,790.51 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 514 Conglomerates companies, Hirakawa Hewtech ranks worse than 50.58% 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
Hirakawa Hewtech had a gross margin of 25.57% 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.
Hirakawa Hewtech Gross Margin % Related Terms
Hirakawa Hewtech Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hirakawa Hewtech'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 Conglomerates subindustry, Hirakawa Hewtech'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.
Hirakawa Hewtech Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hirakawa Hewtech's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hirakawa Hewtech'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.
Hirakawa Hewtech (TSE:5821) has a Gross Margin % of 25.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hirakawa Hewtech and its competitors. This is near median its historical median of 24.19. Over the past decade, Hirakawa Hewtech's Gross Margin % has ranged from 21.59 to 25.98. According to the industry distribution chart, Hirakawa Hewtech ranks #260 out of 514 companies in the Conglomerates industry, placing it in the top 50.6%.
Is Hirakawa Hewtech's Gross Margin % too high?
Hirakawa Hewtech's current Gross Margin % of 25.57% is near median its 10-year median of 24.19. Over the past 10 years, this metric has ranged from a low of 21.59 to a high of 25.98. The Conglomerates industry median Gross Margin % is 25.97. Hirakawa Hewtech's value of 25.57% is 1.5% below this industry median. Based on the distribution chart, Hirakawa Hewtech ranks #260 out of 514 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Hirakawa Hewtech has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hirakawa Hewtech's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hirakawa Hewtech ranks #260 out of 514 companies for Gross Margin %. This places Hirakawa Hewtech in the lower half of its industry. The industry median Gross Margin % is 25.97. Hirakawa Hewtech's value of 25.57% is 1.5% below this benchmark. Historically, Hirakawa Hewtech's own Gross Margin % has ranged from 21.59 to 25.98 over the past decade. While the company's 10-year median is 24.19 vs. the industry median of 25.97, Hirakawa Hewtech 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.97, based on 514 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. Hirakawa Hewtech's current Gross Margin % of 25.57% is 1.5% 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 Hirakawa Hewtech and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hirakawa Hewtech's current Gross Margin % is 25.57%, which is near median its own 10-year median of 24.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hirakawa Hewtech stock overvalued right now?
Based on GuruFocus' analysis, Hirakawa Hewtech (TSE:5821) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,790.51, compared to a current price of 円3,370.00 — trading 88.2% above its estimated fair value. The current Gross Margin % is 25.57%, which is near median its 10-year median of 24.19 and 1.5% below the Conglomerates industry median of 25.97. Hirakawa Hewtech's overall GF Score™ is 71/100 with 1 warning sign 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 Hirakawa Hewtech (TSE:5821), the current Gross Margin % is 25.57% 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 Hirakawa Hewtech (TSE:5821) Overvalued in 2026?
Based on GuruFocus' analysis, Hirakawa Hewtech stock appears to be overvalued.
The current stock price of 円3,370.00 is trading 88.2% above its estimated GF Value™ of 円1,790.51.
GuruFocus considers Hirakawa Hewtech to be Significantly Overvalued.
Key valuation signals for TSE:5821:
Gross Margin %: 25.57% (near median its 10-year median of 24.19)
GF Value™: 円1,790.51 vs. price of 円3,370.00 (88.2% above fair value)
Industry Position: 1.5% below the Conglomerates median (#260 of 514)
No single metric tells the full story. See the TSE:5821 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hirakawa Hewtech Corp is a Japan-based company. It is mainly engaged in the manufacture and sale of electric wires, cables, electrical equipment, and medical equipment. The company is also engaged in the design, construction, supervision and contracting of electrical work and telecommunications construction. Electrical products offered by the company include micro coaxial cable, interface cable, broadcast cable, and high-frequency coaxial cable. Medical equipment offerings include industry tube and medical tube. Hirakawa Hewtech is also engaged in real estate management and leasing.
71GF Score
Get the complete analysis for TSE:5821
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:5821 has been successfully added to your 
