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Sumitomo Heavy IndustriesTSE:6302 +0.35%76 Gross Margin % is 26.17% as of Mar. 2026, which is 12% above its 10-year median of 23.28. GuruFocus rates TSE:6302 with a GF Score™ of 76/100 and a GF Value™ of 円3,672.98 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,998 Industrial Products companies, Sumitomo Heavy Industries ranks worse than 55.14% on this metric.
Sumitomo Heavy Industries (TSE:6302) 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
Sumitomo Heavy Industries had a gross margin of 26.17% 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.
Sumitomo Heavy Industries Gross Margin % Related Terms
Sumitomo Heavy Industries 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:6302 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Sumitomo Heavy Industries'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.
Sumitomo Heavy Industries Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sumitomo Heavy Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sumitomo Heavy Industries'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.
Sumitomo Heavy Industries (TSE:6302) has a Gross Margin % of 26.17% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sumitomo Heavy Industries and its competitors. This is 12% above median its historical median of 23.28. Over the past decade, Sumitomo Heavy Industries' Gross Margin % has ranged from 21.84 to 24.75. According to the industry distribution chart, Sumitomo Heavy Industries ranks #1653 out of 2998 companies in the Industrial Products industry, placing it in the top 55.1%.
Is Sumitomo Heavy Industries' Gross Margin % too high?
Sumitomo Heavy Industries' current Gross Margin % of 26.17% is 12% above median its 10-year median of 23.28. Over the past 10 years, this metric has ranged from a low of 21.84 to a high of 24.75. The Industrial Products industry median Gross Margin % is 26.84. Sumitomo Heavy Industries' value of 26.17% is 2.5% below this industry median. Based on the distribution chart, Sumitomo Heavy Industries ranks #1653 out of 2998 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Sumitomo Heavy Industries has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Heavy Industries' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Sumitomo Heavy Industries ranks #1653 out of 2998 companies for Gross Margin %. This places Sumitomo Heavy Industries in the lower half of its industry. The industry median Gross Margin % is 26.84. Sumitomo Heavy Industries' value of 26.17% is 2.5% below this benchmark. Historically, Sumitomo Heavy Industries' own Gross Margin % has ranged from 21.84 to 24.75 over the past decade. While the company's 10-year median is 23.28 vs. the industry median of 26.84, Sumitomo Heavy Industries 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 26.84, based on 2,998 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. Sumitomo Heavy Industries's current Gross Margin % of 26.17% is 2.5% 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 Sumitomo Heavy Industries and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Heavy Industries's current Gross Margin % is 26.17%, which is 12% above median its own 10-year median of 23.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Heavy Industries (TSE:6302) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,672.98, compared to a current price of 円5,130.00 — trading 39.7% above its estimated fair value. The current Gross Margin % is 26.17%, which is 12% above median its 10-year median of 23.28 and 2.5% below the Industrial Products industry median of 26.84. Sumitomo Heavy Industries' overall GF Score™ is 76/100 with 5 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 Sumitomo Heavy Industries (TSE:6302), the current Gross Margin % is 26.17% 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 Sumitomo Heavy Industries (TSE:6302) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Heavy Industries stock appears to be overvalued.
The current stock price of 円5,130.00 is trading 39.7% above its estimated GF Value™ of 円3,672.98.
GuruFocus considers Sumitomo Heavy Industries to be Significantly Overvalued.
Key valuation signals for TSE:6302:
Gross Margin %: 26.17% (12% above median its 10-year median of 23.28)
GF Value™: 円3,672.98 vs. price of 円5,130.00 (39.7% above fair value)
Industry Position: 2.5% below the Industrial Products median (#1653 of 2998)
No single metric tells the full story. See the TSE:6302 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Heavy Industries Ltd manufactures and sells mechanical components. The company operates through four segments. The Energy & Lifelines segment covers power generation equipment, boilers, turbines, pumps, water treatment systems, ships, and food machinery. Industrial Machinery includes plastic and film processing machinery, cryogenic refrigerators, semiconductor equipment, accelerators, medical devices, forging presses, machine tools, and defense equipment. Logistics & Construction handles excavators, cranes, road machinery, logistics systems, and parking systems. Mechatronics provides gear reducers, motors, inverters, laser processing systems, and control devices, while Others include real estate and software.
76GF Score
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