Daiwa Cycle CoTSE:5888 -1.32%18 Gross Margin % is 42.39% as of Jan. 2026, which is 3% below its 10-year median of 43.79. GuruFocus rates TSE:5888 with a GF Score™ of 18/100. Among 1,308 Vehicles & Parts companies, Daiwa Cycle Co ranks better than 89.76% on this metric.
The historical rank and industry rank for Daiwa Cycle Co's Gross Margin % or its related term are showing as below:
TSE:5888'
s Gross Margin % Range Over the Past 10 Years
Min: 42.95 Med: 43.79 Max: 44.37
Current: 43.45
During the past 5 years, the highestGross Margin % of Daiwa Cycle Co was 44.37%. The lowest was 42.95%. And the median was 43.79%.
TSE:5888's Gross Margin % is ranked better than 89.76% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 19.835
vs TSE:5888: 43.45
Daiwa Cycle Co had a gross margin of 42.39% for the quarter that ended in Jan. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Daiwa Cycle Co was 0.00% per year.
Daiwa Cycle Co (TSE:5888) 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
Daiwa Cycle Co had a gross margin of 42.39% for the quarter that ended in Jan. 2026 => Durable competitive advantage
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.
Daiwa Cycle Co Gross Margin % Related Terms
Daiwa Cycle Co Gross Margin % Historical Data
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The historical data trend for Daiwa Cycle 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.
TSE:5888 vs BC, PII, THO: Gross Margin % Comparison
For the Recreational Vehicles subindustry, Daiwa Cycle 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.
Daiwa Cycle Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daiwa Cycle Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Daiwa Cycle 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.
Daiwa Cycle Co (TSE:5888) has a Gross Margin % of 42.39% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Daiwa Cycle Co and its competitors. This is near median its historical median of 43.79. Over the past decade, Daiwa Cycle Co's Gross Margin % has ranged from 42.95 to 44.37. According to the industry distribution chart, Daiwa Cycle Co ranks #134 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 10.2%.
Is Daiwa Cycle Co's Gross Margin % too high?
Daiwa Cycle Co's current Gross Margin % of 42.39% is near median its 10-year median of 43.79. Over the past 10 years, this metric has ranged from a low of 42.95 to a high of 44.37. The Vehicles & Parts industry median Gross Margin % is 19.84. Daiwa Cycle Co's value of 42.39% is 113.7% above this industry median. Based on the distribution chart, Daiwa Cycle Co ranks #134 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Daiwa Cycle Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Daiwa Cycle Co's Gross Margin % compare to BC and PII?
According to the Vehicles & Parts industry distribution chart, Daiwa Cycle Co ranks #134 out of 1308 companies for Gross Margin %. This places Daiwa Cycle Co in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.84. Daiwa Cycle Co's value of 42.39% is 113.7% above this benchmark. Historically, Daiwa Cycle Co's own Gross Margin % has ranged from 42.95 to 44.37 over the past decade. While the company's 10-year median is 43.79 vs. the industry median of 19.84, Daiwa Cycle 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,308 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. Daiwa Cycle Co's current Gross Margin % of 42.39% is 113.7% 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 Daiwa Cycle Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiwa Cycle Co's current Gross Margin % is 42.39%, which is near median its own 10-year median of 43.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Cycle Co stock overvalued right now?
Daiwa Cycle Co (TSE:5888) has a current Gross Margin % of 42.39%. The current Gross Margin % is 42.39%, which is near median its 10-year median of 43.79 and 113.7% above the Vehicles & Parts industry median of 19.84. Daiwa Cycle Co's overall GF Score™ is 18/100. 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 Daiwa Cycle Co (TSE:5888), the current Gross Margin % is 42.39% as of Jan. 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.
Daiwa Cycle Co Ltd is a specialty retail company that operates a chain of bicycle stores. The Company is engaged in the Sales of bicycles, bicycle parts and accessories as well as the provision of bicycle maintenance and repair. The company distributes its products and services directly to consumers through its directly managed physical locations, franchise partnerships, and e-commerce platforms.
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