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Correc Holdings Inc TSE:6578
Correc Holdings TSE:6578 +0.63% 72 Gross Margin % is 85.15% as of Feb. 2026, which is 6% below its 10-year median of 90.71. GuruFocus rates TSE:6578 with a GF Score™ of 72/100 and a GF Value™ of 円476.79 (Fairly Valued). The stock has 7 warning signs investors should review. Among 513 Conglomerates companies, Correc Holdings ranks better than 97.08% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Correc Holdings's Gross Profit for the six months ended in Feb. 2026 was 円2,872 Mil. Correc Holdings's Revenue for the six months ended in Feb. 2026 was 円3,373 Mil. Therefore, Correc Holdings's Gross Margin % for the quarter that ended in Feb. 2026 was 85.15%.
Warning Sign:
Correc Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -5.9%.
The historical rank and industry rank for Correc Holdings's Gross Margin % or its related term are showing as below:
During the past 11 years, the highest Gross Margin % of Correc Holdings was 98.83%. The lowest was 69.10%. And the median was 90.71%.
Correc Holdings had a gross margin of 85.15% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Correc Holdings was -5.90% per year.
Correc Holdings (TSE:6578) 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
Correc Holdings had a gross margin of 85.15% for the quarter that ended in Feb. 2026 => Durable 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.
The historical data trend for Correc Holdings'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.
| Correc Holdings Annual Data | |||||||||||||||||||||
| Trend | Feb17 | Feb18 | Feb19 | Feb20 | Feb21 | Feb22 | Feb23 | Feb24 | Feb25 | Feb26 | |||||||||||
| Gross Margin % | Get a 7-Day Free Trial |
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96.65 | 93.52 | 87.90 | 69.10 | 80.01 | |||||||||||||
| Correc Holdings Semi-Annual Data | |||||||||||||||||||
| Feb16 | Feb17 | Feb18 | Aug18 | Feb19 | Aug19 | Feb20 | Aug20 | Feb21 | Aug21 | Feb22 | Aug22 | Feb23 | Aug23 | Feb24 | Aug24 | Feb25 | Aug25 | Feb26 | |
| Gross Margin % | Get a 7-Day Free Trial |
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85.59 | 74.92 | 65.05 | 74.77 | 85.15 | ||
For the Conglomerates subindustry, Correc Holdings'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.
For the Conglomerates industry and Industrials sector, Correc Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Correc Holdings's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Correc Holdings's Gross Margin for the fiscal year that ended in Feb. 2026 is calculated as
| Gross Margin % (A: Feb. 2026 ) | = | Gross Profit (A: Feb. 2026 ) | / | Revenue (A: Feb. 2026 ) |
| = | 5348.7 | / | 6685.077 | |
| = | (Revenue - Cost of Goods Sold) | / | Revenue | |
| = | (6685.077 - 1336.423) | / | 6685.077 | |
| = | 80.01 % |
Correc Holdings's Gross Margin for the quarter that ended in Feb. 2026 is calculated as
| Gross Margin % (Q: Feb. 2026 ) | = | Gross Profit (Q: Feb. 2026 ) | / | Revenue (Q: Feb. 2026 ) |
| = | 2872.1 | / | 3372.872 | |
| = | (Revenue - Cost of Goods Sold) | / | Revenue | |
| = | (3372.872 - 500.802) | / | 3372.872 | |
| = | 85.15 % |
* 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.
Based on GuruFocus' analysis, Correc Holdings stock appears to be overvalued. The current stock price of 円480.00 is trading 0.7% above its estimated GF Value™ of 円476.79. GuruFocus considers Correc Holdings to be Fairly Valued.
Key valuation signals for TSE:6578:
No single metric tells the full story. See the TSE:6578 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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