Hoden Seimitsu Kako Kenkyusho Co (TSE:6469) 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
Hoden Seimitsu Kako Kenkyusho Co had a gross margin of 24.41% for the quarter that ended in Feb. 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.
Hoden Seimitsu Kako Kenkyusho Co Gross Margin % Related Terms
Hoden Seimitsu Kako Kenkyusho Co 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.
Hoden Seimitsu Kako Kenkyusho Co Gross Margin % Chart
TSE:6469 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Hoden Seimitsu Kako Kenkyusho 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.
Hoden Seimitsu Kako Kenkyusho Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hoden Seimitsu Kako Kenkyusho Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hoden Seimitsu Kako Kenkyusho 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.
Hoden Seimitsu Kako Kenkyusho Co (TSE:6469) has a Gross Margin % of 24.41% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hoden Seimitsu Kako Kenkyusho Co and its competitors. This is 13% above median its historical median of 21.56. Over the past decade, Hoden Seimitsu Kako Kenkyusho Co's Gross Margin % has ranged from 14.90 to 25.37. According to the industry distribution chart, Hoden Seimitsu Kako Kenkyusho Co ranks #1608 out of 2993 companies in the Industrial Products industry, placing it in the top 53.7%.
Is Hoden Seimitsu Kako Kenkyusho Co's Gross Margin % too high?
Hoden Seimitsu Kako Kenkyusho Co's current Gross Margin % of 24.41% is 13% above median its 10-year median of 21.56. Over the past 10 years, this metric has ranged from a low of 14.90 to a high of 25.37. The Industrial Products industry median Gross Margin % is 26.83. Hoden Seimitsu Kako Kenkyusho Co's value of 24.41% is 9% below this industry median. Based on the distribution chart, Hoden Seimitsu Kako Kenkyusho Co ranks #1608 out of 2993 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Hoden Seimitsu Kako Kenkyusho Co has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hoden Seimitsu Kako Kenkyusho Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Hoden Seimitsu Kako Kenkyusho Co ranks #1608 out of 2993 companies for Gross Margin %. This places Hoden Seimitsu Kako Kenkyusho Co in the lower half of its industry. The industry median Gross Margin % is 26.83. Hoden Seimitsu Kako Kenkyusho Co's value of 24.41% is 9% below this benchmark. Historically, Hoden Seimitsu Kako Kenkyusho Co's own Gross Margin % has ranged from 14.90 to 25.37 over the past decade. While the company's 10-year median is 21.56 vs. the industry median of 26.83, Hoden Seimitsu Kako Kenkyusho 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.83, 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. Hoden Seimitsu Kako Kenkyusho Co's current Gross Margin % of 24.41% is 9% 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 Hoden Seimitsu Kako Kenkyusho Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoden Seimitsu Kako Kenkyusho Co's current Gross Margin % is 24.41%, which is 13% above median its own 10-year median of 21.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoden Seimitsu Kako Kenkyusho Co stock overvalued right now?
Based on GuruFocus' analysis, Hoden Seimitsu Kako Kenkyusho Co (TSE:6469) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,091.60, compared to a current price of 円3,235.00 — trading 196.4% above its estimated fair value. The current Gross Margin % is 24.41%, which is 13% above median its 10-year median of 21.56 and 9% below the Industrial Products industry median of 26.83. Hoden Seimitsu Kako Kenkyusho Co's overall GF Score™ is 55/100 with 2 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 Hoden Seimitsu Kako Kenkyusho Co (TSE:6469), the current Gross Margin % is 24.41% as of Feb. 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 Hoden Seimitsu Kako Kenkyusho Co (TSE:6469) Overvalued in 2026?
Based on GuruFocus' analysis, Hoden Seimitsu Kako Kenkyusho Co stock appears to be overvalued.
The current stock price of 円3,235.00 is trading 196.4% above its estimated GF Value™ of 円1,091.60.
GuruFocus considers Hoden Seimitsu Kako Kenkyusho Co to be Significantly Overvalued.
Key valuation signals for TSE:6469:
Gross Margin %: 24.41% (13% above median its 10-year median of 21.56)
GF Value™: 円1,091.60 vs. price of 円3,235.00 (196.4% above fair value)
Industry Position: 9% below the Industrial Products median (#1608 of 2993)
No single metric tells the full story. See the TSE:6469 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hoden Seimitsu Kako Kenkyusho Co Business Description
Hoden Seimitsu Kako Kenkyusho Co Ltd provides engineering design and manufacturing services. It also provides surface treatment services for automotive components, industrial gas turbine component parts, aircraft engines, and chrome-free paint. Its products include electrical discharge machining, dies molding, machinery and metal products. It also manufactures press composite processing system, digital servo press, and press parts.
55GF Score
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