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Okamoto Machine Tool WorksTSE:6125 -6.18%61 Gross Margin % is 25.39% as of Mar. 2026, which is 17% below its 10-year median of 30.45. GuruFocus rates TSE:6125 with a GF Score™ of 61/100 and a GF Value™ of 円3,504.13 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 2,996 Industrial Products companies, Okamoto Machine Tool Works ranks better than 50.23% on this metric.
Okamoto Machine Tool Works (TSE:6125) 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
Okamoto Machine Tool Works had a gross margin of 25.39% 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.
Okamoto Machine Tool Works Gross Margin % Related Terms
Okamoto Machine Tool Works 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.
TSE:6125 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Okamoto Machine Tool Works'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.
Okamoto Machine Tool Works Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Okamoto Machine Tool Works's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Okamoto Machine Tool Works'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.
Okamoto Machine Tool Works (TSE:6125) has a Gross Margin % of 25.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Okamoto Machine Tool Works and its competitors. This is 17% below median its historical median of 30.45. Over the past decade, Okamoto Machine Tool Works' Gross Margin % has ranged from 26.90 to 32.87. According to the industry distribution chart, Okamoto Machine Tool Works ranks #1491 out of 2996 companies in the Industrial Products industry, placing it in the top 49.8%.
Is Okamoto Machine Tool Works' Gross Margin % too high?
Okamoto Machine Tool Works' current Gross Margin % of 25.39% is 17% below median its 10-year median of 30.45. Over the past 10 years, this metric has ranged from a low of 26.90 to a high of 32.87. The Industrial Products industry median Gross Margin % is 26.82. Okamoto Machine Tool Works' value of 25.39% is 5.3% below this industry median. Based on the distribution chart, Okamoto Machine Tool Works ranks #1491 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Okamoto Machine Tool Works has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Okamoto Machine Tool Works' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Okamoto Machine Tool Works ranks #1491 out of 2996 companies for Gross Margin %. This puts Okamoto Machine Tool Works in the upper half of its industry. The industry median Gross Margin % is 26.82. Okamoto Machine Tool Works' value of 25.39% is 5.3% below this benchmark. Historically, Okamoto Machine Tool Works' own Gross Margin % has ranged from 26.90 to 32.87 over the past decade. While the company's 10-year median is 30.45 vs. the industry median of 26.82, Okamoto Machine Tool Works 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,996 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. Okamoto Machine Tool Works's current Gross Margin % of 25.39% is 5.3% 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 Okamoto Machine Tool Works and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Okamoto Machine Tool Works's current Gross Margin % is 25.39%, which is 17% below median its own 10-year median of 30.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Okamoto Machine Tool Works stock overvalued right now?
Based on GuruFocus' analysis, Okamoto Machine Tool Works (TSE:6125) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,504.13, compared to a current price of 円5,160.00 — trading 47.3% above its estimated fair value. The current Gross Margin % is 25.39%, which is 17% below median its 10-year median of 30.45 and 5.3% below the Industrial Products industry median of 26.82. Okamoto Machine Tool Works' overall GF Score™ is 61/100 with 12 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 Okamoto Machine Tool Works (TSE:6125), the current Gross Margin % is 25.39% 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 Okamoto Machine Tool Works (TSE:6125) Overvalued in 2026?
Based on GuruFocus' analysis, Okamoto Machine Tool Works stock appears to be overvalued.
The current stock price of 円5,160.00 is trading 47.3% above its estimated GF Value™ of 円3,504.13.
GuruFocus considers Okamoto Machine Tool Works to be Significantly Overvalued.
Key valuation signals for TSE:6125:
Gross Margin %: 25.39% (17% below median its 10-year median of 30.45)
GF Value™: 円3,504.13 vs. price of 円5,160.00 (47.3% above fair value)
Industry Position: 5.3% below the Industrial Products median (#1491 of 2996)
No single metric tells the full story. See the TSE:6125 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Okamoto Machine Tool Works Ltd is engaged in the manufacture and sale of various grinding machines and semiconductor-related manufacturing equipment. The company's reportable segments are the machine tool business and the semiconductor-related equipment business. The majority of its revenue is generated from the machine tools business, which mainly produces and sells grinding machines, precision gears, and castings. The semiconductor-related equipment business manufactures and sells polishing machines, grinding machines, and slicing machines.
61GF Score
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