Aiphone CoTSE:6718 +0.29%75 Gross Margin % is 42.71% as of Mar. 2026, which is 5% below its 10-year median of 44.96. GuruFocus rates TSE:6718 with a GF Score™ of 75/100 and a GF Value™ of 円2,924.90 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,450 Hardware companies, Aiphone Co ranks better than 79.35% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Aiphone Co's Gross Profit for the
three
months ended in Mar. 2026 was 円8,022 Mil. Aiphone Co's Revenue for the
three
months ended in Mar. 2026 was 円18,781 Mil. Therefore, Aiphone Co's Gross Margin % for the quarter that ended in Mar. 2026 was 42.71%.
Warning Sign:
Aiphone Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Aiphone Co's Gross Margin % or its related term are showing as below:
TSE:6718'
s Gross Margin % Range Over the Past 10 Years
Min: 42.09 Med: 44.96 Max: 46.09
Current: 42.09
During the past 13 years, the highestGross Margin % of Aiphone Co was 46.09%. The lowest was 42.09%. And the median was 44.96%.
TSE:6718's Gross Margin % is ranked better than 79.35% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs TSE:6718: 42.09
Aiphone Co had a gross margin of 42.71% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Aiphone Co was -1.60% per year.
Aiphone Co (TSE:6718) 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
Aiphone Co had a gross margin of 42.71% for the quarter that ended in Mar. 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.
Aiphone Co Gross Margin % Related Terms
Aiphone Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Aiphone 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:6718 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Aiphone 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.
Aiphone Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Aiphone Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aiphone 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.
Aiphone Co (TSE:6718) has a Gross Margin % of 42.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aiphone Co and its competitors. This is near median its historical median of 44.96. Over the past decade, Aiphone Co's Gross Margin % has ranged from 42.09 to 46.09. According to the industry distribution chart, Aiphone Co ranks #506 out of 2450 companies in the Hardware industry, placing it in the top 20.7%.
Is Aiphone Co's Gross Margin % too high?
Aiphone Co's current Gross Margin % of 42.71% is near median its 10-year median of 44.96. Over the past 10 years, this metric has ranged from a low of 42.09 to a high of 46.09. The Hardware industry median Gross Margin % is 24.53. Aiphone Co's value of 42.71% is 74.1% above this industry median. Based on the distribution chart, Aiphone Co ranks #506 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Aiphone Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aiphone Co's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Aiphone Co ranks #506 out of 2450 companies for Gross Margin %. This places Aiphone Co in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Aiphone Co's value of 42.71% is 74.1% above this benchmark. Historically, Aiphone Co's own Gross Margin % has ranged from 42.09 to 46.09 over the past decade. While the company's 10-year median is 44.96 vs. the industry median of 24.53, Aiphone Co 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 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. Aiphone Co's current Gross Margin % of 42.71% is 74.1% 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 Aiphone Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aiphone Co's current Gross Margin % is 42.71%, which is near median its own 10-year median of 44.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aiphone Co stock overvalued right now?
Based on GuruFocus' analysis, Aiphone Co (TSE:6718) is currently considered Fairly Valued. The stock's GF Value™ is 円2,924.90, compared to a current price of 円2,790.00 — trading 4.6% below its estimated fair value. The current Gross Margin % is 42.71%, which is near median its 10-year median of 44.96 and 74.1% above the Hardware industry median of 24.53. Aiphone Co's overall GF Score™ is 75/100 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 Aiphone Co (TSE:6718), the current Gross Margin % is 42.71% 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 Aiphone Co (TSE:6718) Overvalued in 2026?
Based on GuruFocus' analysis, Aiphone Co stock appears to be undervalued.
The current stock price of 円2,790.00 is trading 4.6% below its estimated GF Value™ of 円2,924.90.
GuruFocus considers Aiphone Co to be Fairly Valued.
Key valuation signals for TSE:6718:
Gross Margin %: 42.71% (near median its 10-year median of 44.96)
GF Value™: 円2,924.90 vs. price of 円2,790.00 (4.6% below fair value)
Industry Position: 74.1% above the Hardware median (#506 of 2450)
No single metric tells the full story. See the TSE:6718 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aiphone Co Ltd is a Japanese company engaged in manufacturing and selling communication and security systems. It operates in two business divisions including security business and care business. In the security business, it offers security systems for detached houses, apartment houses, schools, public facilities, and commercial facilities. Its products include TV (television) door phone, emergency caller, wireless paging system, interphone application, among others. In the care business, it manufactures products including nurse call for medical facilities, nurse call for welfare facilities, and multi-housing system for elderly people.
75GF Score
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