Tensho Electric Industries Co (TSE:6776) 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
Tensho Electric Industries Co had a gross margin of 18.94% 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.
Tensho Electric Industries Co Gross Margin % Related Terms
Tensho Electric Industries 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.
Tensho Electric Industries Co Gross Margin % Chart
For the Auto Parts subindustry, Tensho Electric Industries 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.
Tensho Electric Industries Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tensho Electric Industries Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tensho Electric Industries 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.
Tensho Electric Industries Co (TSE:6776) has a Gross Margin % of 18.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tensho Electric Industries Co and its competitors. This is near median its historical median of 17.57. Over the past decade, Tensho Electric Industries Co's Gross Margin % has ranged from 14.75 to 22.38. According to the industry distribution chart, Tensho Electric Industries Co ranks #737 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 56.3%.
Is Tensho Electric Industries Co's Gross Margin % too high?
Tensho Electric Industries Co's current Gross Margin % of 18.94% is near median its 10-year median of 17.57. Over the past 10 years, this metric has ranged from a low of 14.75 to a high of 22.38. The Vehicles & Parts industry median Gross Margin % is 19.84. Tensho Electric Industries Co's value of 18.94% is 4.5% below this industry median. Based on the distribution chart, Tensho Electric Industries Co ranks #737 out of 1308 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Tensho Electric Industries Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tensho Electric Industries Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Tensho Electric Industries Co ranks #737 out of 1308 companies for Gross Margin %. This places Tensho Electric Industries Co in the lower half of its industry. The industry median Gross Margin % is 19.84. Tensho Electric Industries Co's value of 18.94% is 4.5% below this benchmark. Historically, Tensho Electric Industries Co's own Gross Margin % has ranged from 14.75 to 22.38 over the past decade. While the company's 10-year median is 17.57 vs. the industry median of 19.84, Tensho Electric Industries 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,308 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. Tensho Electric Industries Co's current Gross Margin % of 18.94% is 4.5% 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 Tensho Electric Industries Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tensho Electric Industries Co's current Gross Margin % is 18.94%, which is near median its own 10-year median of 17.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tensho Electric Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Tensho Electric Industries Co (TSE:6776) is currently considered Fairly Valued. The stock's GF Value™ is 円246.39, compared to a current price of 円272.00 — trading 10.4% above its estimated fair value. The current Gross Margin % is 18.94%, which is near median its 10-year median of 17.57 and 4.5% below the Vehicles & Parts industry median of 19.84. Tensho Electric Industries Co's overall GF Score™ is 73/100 with 4 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 Tensho Electric Industries Co (TSE:6776), the current Gross Margin % is 18.94% 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 Tensho Electric Industries Co (TSE:6776) Overvalued in 2026?
Based on GuruFocus' analysis, Tensho Electric Industries Co stock appears to be overvalued.
The current stock price of 円272.00 is trading 10.4% above its estimated GF Value™ of 円246.39.
GuruFocus considers Tensho Electric Industries Co to be Fairly Valued.
Key valuation signals for TSE:6776:
Gross Margin %: 18.94% (near median its 10-year median of 17.57)
GF Value™: 円246.39 vs. price of 円272.00 (10.4% above fair value)
Industry Position: 4.5% below the Vehicles & Parts median (#737 of 1308)
No single metric tells the full story. See the TSE:6776 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tensho Electric Industries Co Business Description
Tensho Electric Industries Co Ltd is engaged in designing, manufacturing, and selling of plastic products and molds. Its products include automobile plastic parts, lighting, office equipment, OA equipment, infectious medical waste containers, conductive printed circuit board storage racks, liquid crystal TVs, logistics industry materials, returnable containers.
73GF Score
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