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Union Tool CoTSE:6278 -8.63%79 Gross Margin % is 36.97% as of Dec. 2025, which is 1% above its 10-year median of 36.45. GuruFocus rates TSE:6278 with a GF Score™ of 79/100 and a GF Value™ of 円7,748.96 (Significantly Overvalued). Among 2,996 Industrial Products companies, Union Tool Co ranks better than 79.14% on this metric.
The historical rank and industry rank for Union Tool Co's Gross Margin % or its related term are showing as below:
TSE:6278'
s Gross Margin % Range Over the Past 10 Years
Min: 32.01 Med: 36.45 Max: 40.37
Current: 40.37
During the past 13 years, the highestGross Margin % of Union Tool Co was 40.37%. The lowest was 32.01%. And the median was 36.45%.
TSE:6278's Gross Margin % is ranked better than 79.14% of 2996
companies
in the Industrial Products industry
Industry Median: 26.82
vs TSE:6278: 40.37
Union Tool Co had a gross margin of 36.97% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Union Tool Co was 3.50% per year.
Union Tool Co (TSE:6278) 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
Union Tool Co had a gross margin of 36.97% for the quarter that ended in Dec. 2025 => 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.
Union Tool Co Gross Margin % Related Terms
Union Tool Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Union Tool 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:6278 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Union Tool 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.
Union Tool Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Union Tool Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Union Tool 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.
Union Tool Co (TSE:6278) has a Gross Margin % of 36.97% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Union Tool Co and its competitors. This is near median its historical median of 36.45. Over the past decade, Union Tool Co's Gross Margin % has ranged from 32.01 to 40.37. According to the industry distribution chart, Union Tool Co ranks #625 out of 2996 companies in the Industrial Products industry, placing it in the top 20.9%.
Is Union Tool Co's Gross Margin % too high?
Union Tool Co's current Gross Margin % of 36.97% is near median its 10-year median of 36.45. Over the past 10 years, this metric has ranged from a low of 32.01 to a high of 40.37. The Industrial Products industry median Gross Margin % is 26.82. Union Tool Co's value of 36.97% is 37.8% above this industry median. Based on the distribution chart, Union Tool Co ranks #625 out of 2996 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Union Tool Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Union Tool Co's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Union Tool Co ranks #625 out of 2996 companies for Gross Margin %. This places Union Tool Co in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.82. Union Tool Co's value of 36.97% is 37.8% above this benchmark. Historically, Union Tool Co's own Gross Margin % has ranged from 32.01 to 40.37 over the past decade. While the company's 10-year median is 36.45 vs. the industry median of 26.82, Union Tool 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 26.82, 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. Union Tool Co's current Gross Margin % of 36.97% is 37.8% 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 Union Tool Co 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. Union Tool Co's current Gross Margin % is 36.97%, which is near median its own 10-year median of 36.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union Tool Co stock overvalued right now?
Based on GuruFocus' analysis, Union Tool Co (TSE:6278) is currently considered Significantly Overvalued. The stock's GF Value™ is 円7,748.96, compared to a current price of 円17,250.00 — trading 122.6% above its estimated fair value. The current Gross Margin % is 36.97%, which is near median its 10-year median of 36.45 and 37.8% above the Industrial Products industry median of 26.82. Union Tool Co's overall GF Score™ is 79/100. 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 Union Tool Co (TSE:6278), the current Gross Margin % is 36.97% as of Dec. 2025. 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 Union Tool Co (TSE:6278) Overvalued in 2026?
Based on GuruFocus' analysis, Union Tool Co stock appears to be overvalued.
The current stock price of 円17,250.00 is trading 122.6% above its estimated GF Value™ of 円7,748.96.
GuruFocus considers Union Tool Co to be Significantly Overvalued.
Key valuation signals for TSE:6278:
Gross Margin %: 36.97% (near median its 10-year median of 36.45)
GF Value™: 円7,748.96 vs. price of 円17,250.00 (122.6% above fair value)
Industry Position: 37.8% above the Industrial Products median (#625 of 2996)
No single metric tells the full story. See the TSE:6278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Union Tool Co is a designer and manufacturer of industrial cutting tools to a broad sector of the global industry. The company's key product includes carbide drill used in the manufacture of Printed Circuit Boards, found in all modern electronics. It also manufactures precision machinery including linear motion guides, diesinking end-mills, and digital measuring equipment for industrial use. The company has operations in Japan, Asia, North America and Europe.
79GF Score
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