Kato Works CoTSE:6390 +1.56%57 Gross Margin % is 9.79% as of Mar. 2026, which is 31% below its 10-year median of 14.20. GuruFocus rates TSE:6390 with a GF Score™ of 57/100 and a GF Value™ of 円1,345.19 (Fairly Valued). The stock has 5 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Kato Works Co ranks worse than 90.91% on this metric.
The historical rank and industry rank for Kato Works Co's Gross Margin % or its related term are showing as below:
TSE:6390'
s Gross Margin % Range Over the Past 10 Years
Min: 9.62 Med: 14.2 Max: 18.3
Current: 10.34
During the past 13 years, the highestGross Margin % of Kato Works Co was 18.30%. The lowest was 9.62%. And the median was 14.20%.
TSE:6390's Gross Margin % is ranked worse than 90.91% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.64
vs TSE:6390: 10.34
Kato Works Co had a gross margin of 9.79% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kato Works Co was 5.40% per year.
Kato Works Co (TSE:6390) 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
Kato Works Co had a gross margin of 9.79% 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.
Kato Works Co Gross Margin % Related Terms
Kato Works Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Kato Works 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:6390 vs CAT, DE, PCAR: Gross Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Kato Works 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.
Kato Works Co Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Kato Works Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kato Works 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.
Kato Works Co (TSE:6390) has a Gross Margin % of 9.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kato Works Co and its competitors. This is 31% below median its historical median of 14.20. Over the past decade, Kato Works Co's Gross Margin % has ranged from 9.62 to 18.30. According to the industry distribution chart, Kato Works Co ranks #190 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 90.9%.
Is Kato Works Co's Gross Margin % too high?
Kato Works Co's current Gross Margin % of 9.79% is 31% below median its 10-year median of 14.20. Over the past 10 years, this metric has ranged from a low of 9.62 to a high of 18.30. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.64. Kato Works Co's value of 9.79% is 61.8% below this industry median. Based on the distribution chart, Kato Works Co ranks #190 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Kato Works Co has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kato Works Co's Gross Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Kato Works Co ranks #190 out of 209 companies for Gross Margin %. This places Kato Works Co in the lower half of its industry. The industry median Gross Margin % is 25.64. Kato Works Co's value of 9.79% is 61.8% below this benchmark. Historically, Kato Works Co's own Gross Margin % has ranged from 9.62 to 18.30 over the past decade. While the company's 10-year median is 14.20 vs. the industry median of 25.64, Kato Works Co 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 a Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.64, based on 209 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. Kato Works Co's current Gross Margin % of 9.79% is 61.8% 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 Kato Works Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kato Works Co's current Gross Margin % is 9.79%, which is 31% below median its own 10-year median of 14.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kato Works Co stock overvalued right now?
Based on GuruFocus' analysis, Kato Works Co (TSE:6390) is currently considered Fairly Valued. The stock's GF Value™ is 円1,345.19, compared to a current price of 円1,305.00 — trading 3% below its estimated fair value. The current Gross Margin % is 9.79%, which is 31% below median its 10-year median of 14.20 and 61.8% below the Farm & Heavy Construction Machinery industry median of 25.64. Kato Works Co's overall GF Score™ is 57/100 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 Kato Works Co (TSE:6390), the current Gross Margin % is 9.79% 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 Kato Works Co (TSE:6390) Overvalued in 2026?
Based on GuruFocus' analysis, Kato Works Co stock appears to be undervalued.
The current stock price of 円1,305.00 is trading 3% below its estimated GF Value™ of 円1,345.19.
GuruFocus considers Kato Works Co to be Fairly Valued.
Key valuation signals for TSE:6390:
Gross Margin %: 9.79% (31% below median its 10-year median of 14.20)
GF Value™: 円1,345.19 vs. price of 円1,305.00 (3% below fair value)
Industry Position: 61.8% below the Farm & Heavy Construction Machinery median (#190 of 209)
No single metric tells the full story. See the TSE:6390 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kato Works Co Ltd is a Japan-based machinery manufacturer. The company is mainly engaged in the manufacturing and sales of machinery used for the lifting and construction industries. It offers various construction equipment, mobile cranes, and industrial equipment, including truck cranes, hydraulic excavators, rough terrain cranes, all-terrain cranes, crawler cranes, mini excavators, earth boring rigs, vacuum trucks, street sweepers, and snow sweepers. Kato also offers related spare parts and services. The group's reportable segments are Japan, which is its key revenue-generating market, China, Europe, and Others.
57GF Score
Get the complete analysis for TSE:6390
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:6390 has been successfully added to your 
