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TONE CoTSE:5967 +1.04%76 Gross Margin % is 39.97% as of Feb. 2026, which is 4% below its 10-year median of 41.62. GuruFocus rates TSE:5967 with a GF Score™ of 76/100 and a GF Value™ of 円610.90 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,997 Industrial Products companies, TONE Co ranks better than 80.28% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. TONE Co's Gross Profit for the
three
months ended in Feb. 2026 was 円718 Mil. TONE Co's Revenue for the
three
months ended in Feb. 2026 was 円1,797 Mil. Therefore, TONE Co's Gross Margin % for the quarter that ended in Feb. 2026 was 39.97%.
Warning Sign:
TONE Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for TONE Co's Gross Margin % or its related term are showing as below:
TSE:5967'
s Gross Margin % Range Over the Past 10 Years
Min: 39.03 Med: 41.62 Max: 48.57
Current: 41.59
During the past 13 years, the highestGross Margin % of TONE Co was 48.57%. The lowest was 39.03%. And the median was 41.62%.
TSE:5967's Gross Margin % is ranked better than 80.28% of 2997
companies
in the Industrial Products industry
Industry Median: 26.85
vs TSE:5967: 41.59
TONE Co had a gross margin of 39.97% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for TONE Co was -1.50% per year.
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
TONE Co had a gross margin of 39.97% for the quarter that ended in Feb. 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.
TONE Co Gross Margin % Related Terms
TONE Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for TONE 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:5967 vs SNA, RBC, SWK: Gross Margin % Comparison
For the Tools & Accessories subindustry, TONE 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.
TONE Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, TONE Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TONE 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.
TONE Co (TSE:5967) has a Gross Margin % of 39.97% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TONE Co and its competitors. This is near median its historical median of 41.62. Over the past decade, TONE Co's Gross Margin % has ranged from 39.03 to 48.57. According to the industry distribution chart, TONE Co ranks #591 out of 2997 companies in the Industrial Products industry, placing it in the top 19.7%.
Is TONE Co's Gross Margin % too high?
TONE Co's current Gross Margin % of 39.97% is near median its 10-year median of 41.62. Over the past 10 years, this metric has ranged from a low of 39.03 to a high of 48.57. The Industrial Products industry median Gross Margin % is 26.85. TONE Co's value of 39.97% is 48.9% above this industry median. Based on the distribution chart, TONE Co ranks #591 out of 2997 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, TONE Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TONE Co's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, TONE Co ranks #591 out of 2997 companies for Gross Margin %. This places TONE Co in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.85. TONE Co's value of 39.97% is 48.9% above this benchmark. Historically, TONE Co's own Gross Margin % has ranged from 39.03 to 48.57 over the past decade. While the company's 10-year median is 41.62 vs. the industry median of 26.85, TONE 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.85, based on 2,997 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. TONE Co's current Gross Margin % of 39.97% is 48.9% 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 TONE Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TONE Co's current Gross Margin % is 39.97%, which is near median its own 10-year median of 41.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TONE Co stock overvalued right now?
Based on GuruFocus' analysis, TONE Co (TSE:5967) is currently considered Modestly Undervalued. The stock's GF Value™ is 円610.90, compared to a current price of 円487.00 — trading 20.3% below its estimated fair value. The current Gross Margin % is 39.97%, which is near median its 10-year median of 41.62 and 48.9% above the Industrial Products industry median of 26.85. TONE Co's overall GF Score™ is 76/100 with 3 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 TONE Co (TSE:5967), the current Gross Margin % is 39.97% as of Feb. 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 TONE Co (TSE:5967) Overvalued in 2026?
Based on GuruFocus' analysis, TONE Co stock appears to be undervalued.
The current stock price of 円487.00 is trading 20.3% below its estimated GF Value™ of 円610.90.
GuruFocus considers TONE Co to be Modestly Undervalued.
Key valuation signals for TSE:5967:
Gross Margin %: 39.97% (near median its 10-year median of 41.62)
GF Value™: 円610.90 vs. price of 円487.00 (20.3% below fair value)
Industry Position: 48.9% above the Industrial Products median (#591 of 2997)
No single metric tells the full story. See the TSE:5967 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TONE Co Ltd is engaged in the manufacture of work tools for the professional automotive machine direction, and industrial construction and civil engineering development, manufacturing and sales of power tools and torque management devices.
76GF Score
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