Taihei Machinery WorksTSE:6342 -0.61%81 Gross Margin % is 22.07% as of Mar. 2026, which is 11% below its 10-year median of 24.78. GuruFocus rates TSE:6342 with a GF Score™ of 81/100 and a GF Value™ of 円2,519.38 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 278 Forest Products companies, Taihei Machinery Works ranks better than 60.43% on this metric.
TSE:6342's Gross Margin % is ranked better than 60.43% of 278
companies
in the Forest Products industry
Industry Median: 18.975
vs TSE:6342: 24.86
Taihei Machinery Works had a gross margin of 22.07% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Taihei Machinery Works was 9.40% per year.
Taihei Machinery Works (TSE:6342) 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
Taihei Machinery Works had a gross margin of 22.07% 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.
Taihei Machinery Works Gross Margin % Related Terms
Taihei Machinery Works Gross Margin % Historical Data
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The historical data trend for Taihei Machinery Works'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:6342 vs SSD, UFPI, BCC: Gross Margin % Comparison
For the Lumber & Wood Production subindustry, Taihei Machinery 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.
Taihei Machinery Works Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Taihei Machinery Works's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Taihei Machinery 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.
Taihei Machinery Works (TSE:6342) has a Gross Margin % of 22.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Taihei Machinery Works and its competitors. This is 11% below median its historical median of 24.78. Over the past decade, Taihei Machinery Works' Gross Margin % has ranged from 17.99 to 28.66. According to the industry distribution chart, Taihei Machinery Works ranks #110 out of 278 companies in the Forest Products industry, placing it in the top 39.6%.
Is Taihei Machinery Works' Gross Margin % too high?
Taihei Machinery Works' current Gross Margin % of 22.07% is 11% below median its 10-year median of 24.78. Over the past 10 years, this metric has ranged from a low of 17.99 to a high of 28.66. The Forest Products industry median Gross Margin % is 18.98. Taihei Machinery Works' value of 22.07% is 16.3% above this industry median. Based on the distribution chart, Taihei Machinery Works ranks #110 out of 278 companies in the Forest Products industry, which is above the industry midpoint. Overall, Taihei Machinery Works has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taihei Machinery Works' Gross Margin % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, Taihei Machinery Works ranks #110 out of 278 companies for Gross Margin %. This puts Taihei Machinery Works in the upper half of its industry. The industry median Gross Margin % is 18.98. Taihei Machinery Works' value of 22.07% is 16.3% above this benchmark. Historically, Taihei Machinery Works' own Gross Margin % has ranged from 17.99 to 28.66 over the past decade. While the company's 10-year median is 24.78 vs. the industry median of 18.98, Taihei Machinery Works 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 a Forest Products company?
The median Gross Margin % among Forest Products companies is 18.98, based on 278 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. Taihei Machinery Works's current Gross Margin % of 22.07% is 16.3% 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 Taihei Machinery Works and its competitors. For the Forest Products industry, the median Gross Margin % is 18.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taihei Machinery Works's current Gross Margin % is 22.07%, which is 11% below median its own 10-year median of 24.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taihei Machinery Works stock overvalued right now?
Based on GuruFocus' analysis, Taihei Machinery Works (TSE:6342) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,519.38, compared to a current price of 円2,792.00 — trading 10.8% above its estimated fair value. The current Gross Margin % is 22.07%, which is 11% below median its 10-year median of 24.78 and 16.3% above the Forest Products industry median of 18.98. Taihei Machinery Works' overall GF Score™ is 81/100 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 Taihei Machinery Works (TSE:6342), the current Gross Margin % is 22.07% 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 Taihei Machinery Works (TSE:6342) Overvalued in 2026?
Based on GuruFocus' analysis, Taihei Machinery Works stock appears to be overvalued.
The current stock price of 円2,792.00 is trading 10.8% above its estimated GF Value™ of 円2,519.38.
GuruFocus considers Taihei Machinery Works to be Modestly Overvalued.
Key valuation signals for TSE:6342:
Gross Margin %: 22.07% (11% below median its 10-year median of 24.78)
GF Value™: 円2,519.38 vs. price of 円2,792.00 (10.8% above fair value)
Industry Position: 16.3% above the Forest Products median (#110 of 278)
No single metric tells the full story. See the TSE:6342 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taihei Machinery Works Ltd is engaged in the manufacturing and sale of plywood and woodworking machines. It offers plywood plant equipment, LVL production machines, knife grinding machines, chargers, reeling apparatus and dryers among others.
81GF 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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