Howa MachineryTSE:6203 +4.21%61 Gross Margin % is 18.37% as of Mar. 2026, which is 2% above its 10-year median of 18.01. GuruFocus rates TSE:6203 with a GF Score™ of 61/100 and a GF Value™ of 円1,025.89 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,993 Industrial Products companies, Howa Machinery ranks worse than 74.17% on this metric.
Howa Machinery Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for Howa Machinery's Gross Margin % or its related term are showing as below:
TSE:6203'
s Gross Margin % Range Over the Past 10 Years
Min: 14.57 Med: 18.01 Max: 20.09
Current: 17.57
During the past 13 years, the highestGross Margin % of Howa Machinery was 20.09%. The lowest was 14.57%. And the median was 18.01%.
TSE:6203's Gross Margin % is ranked worse than 74.17% of 2993
companies
in the Industrial Products industry
Industry Median: 26.81
vs TSE:6203: 17.57
Howa Machinery had a gross margin of 18.37% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Howa Machinery was -2.30% per year.
Howa Machinery (TSE:6203) 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
Howa Machinery had a gross margin of 18.37% for the quarter that ended in Mar. 2026 => No sustainable 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.
Howa Machinery Gross Margin % Related Terms
Howa Machinery Gross Margin % Historical Data
* Premium members only.
The historical data trend for Howa Machinery'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:6203 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Howa Machinery'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.
Howa Machinery Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Howa Machinery's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Howa Machinery'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.
Howa Machinery (TSE:6203) has a Gross Margin % of 18.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Howa Machinery and its competitors. This is near median its historical median of 18.01. Over the past decade, Howa Machinery's Gross Margin % has ranged from 14.57 to 20.09. According to the industry distribution chart, Howa Machinery ranks #2220 out of 2993 companies in the Industrial Products industry, placing it in the top 74.2%.
Is Howa Machinery's Gross Margin % too high?
Howa Machinery's current Gross Margin % of 18.37% is near median its 10-year median of 18.01. Over the past 10 years, this metric has ranged from a low of 14.57 to a high of 20.09. The Industrial Products industry median Gross Margin % is 26.81. Howa Machinery's value of 18.37% is 31.5% below this industry median. Based on the distribution chart, Howa Machinery ranks #2220 out of 2993 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Howa Machinery has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howa Machinery's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Howa Machinery ranks #2220 out of 2993 companies for Gross Margin %. This places Howa Machinery in the lower half of its industry. The industry median Gross Margin % is 26.81. Howa Machinery's value of 18.37% is 31.5% below this benchmark. Historically, Howa Machinery's own Gross Margin % has ranged from 14.57 to 20.09 over the past decade. While the company's 10-year median is 18.01 vs. the industry median of 26.81, Howa Machinery 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 26.81, based on 2,993 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. Howa Machinery's current Gross Margin % of 18.37% is 31.5% 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 Howa Machinery and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howa Machinery's current Gross Margin % is 18.37%, which is near median its own 10-year median of 18.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howa Machinery stock overvalued right now?
Based on GuruFocus' analysis, Howa Machinery (TSE:6203) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,025.89, compared to a current price of 円1,635.00 — trading 59.4% above its estimated fair value. The current Gross Margin % is 18.37%, which is near median its 10-year median of 18.01 and 31.5% below the Industrial Products industry median of 26.81. Howa Machinery's overall GF Score™ is 61/100 with 6 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 Howa Machinery (TSE:6203), the current Gross Margin % is 18.37% 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 Howa Machinery (TSE:6203) Overvalued in 2026?
Based on GuruFocus' analysis, Howa Machinery stock appears to be overvalued.
The current stock price of 円1,635.00 is trading 59.4% above its estimated GF Value™ of 円1,025.89.
GuruFocus considers Howa Machinery to be Significantly Overvalued.
Key valuation signals for TSE:6203:
Gross Margin %: 18.37% (near median its 10-year median of 18.01)
GF Value™: 円1,025.89 vs. price of 円1,635.00 (59.4% above fair value)
Industry Position: 31.5% below the Industrial Products median (#2220 of 2993)
No single metric tells the full story. See the TSE:6203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Howa Machinery Ltd engages in the manufacture and sale of machine tools, pneumatic and hydraulic equipment, electronic machines, firearms, construction materials and construction machinery.
61GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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