Santec HoldingsTSE:6777 -2.97%87 Gross Margin % is 58.54% as of Mar. 2026, which is 12% above its 10-year median of 52.07. GuruFocus rates TSE:6777 with a GF Score™ of 87/100 and a GF Value™ of 円9,184.81 (Significantly Overvalued). Among 2,453 Hardware companies, Santec Holdings ranks better than 92.05% on this metric.
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
Santec Holdings had a gross margin of 58.54% 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.
Santec Holdings Gross Margin % Related Terms
Santec Holdings Gross Margin % Historical Data
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The historical data trend for Santec 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.
TSE:6777 vs COHR, KEYS, GRMN: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Santec 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.
Santec Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Santec Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Santec Holdings'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.
Santec Holdings (TSE:6777) has a Gross Margin % of 58.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Santec Holdings and its competitors. This is 12% above median its historical median of 52.07. Over the past decade, Santec Holdings' Gross Margin % has ranged from 47.81 to 58.35. According to the industry distribution chart, Santec Holdings ranks #195 out of 2453 companies in the Hardware industry, placing it in the top 7.9%.
Is Santec Holdings' Gross Margin % too high?
Santec Holdings' current Gross Margin % of 58.54% is 12% above median its 10-year median of 52.07. Over the past 10 years, this metric has ranged from a low of 47.81 to a high of 58.35. The Hardware industry median Gross Margin % is 24.52. Santec Holdings' value of 58.54% is 138.7% above this industry median. Based on the distribution chart, Santec Holdings ranks #195 out of 2453 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Santec Holdings has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Santec Holdings' Gross Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Santec Holdings ranks #195 out of 2453 companies for Gross Margin %. This places Santec Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.52. Santec Holdings' value of 58.54% is 138.7% above this benchmark. Historically, Santec Holdings' own Gross Margin % has ranged from 47.81 to 58.35 over the past decade. While the company's 10-year median is 52.07 vs. the industry median of 24.52, Santec Holdings 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 24.52, based on 2,453 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. Santec Holdings's current Gross Margin % of 58.54% is 138.7% 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 Santec Holdings and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Santec Holdings's current Gross Margin % is 58.54%, which is 12% above median its own 10-year median of 52.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Santec Holdings stock overvalued right now?
Based on GuruFocus' analysis, Santec Holdings (TSE:6777) is currently considered Significantly Overvalued. The stock's GF Value™ is 円9,184.81, compared to a current price of 円25,800.00 — trading 180.9% above its estimated fair value. The current Gross Margin % is 58.54%, which is 12% above median its 10-year median of 52.07 and 138.7% above the Hardware industry median of 24.52. Santec Holdings' overall GF Score™ is 87/100. 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 Santec Holdings (TSE:6777), the current Gross Margin % is 58.54% 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 Santec Holdings (TSE:6777) Overvalued in 2026?
Based on GuruFocus' analysis, Santec Holdings stock appears to be overvalued.
The current stock price of 円25,800.00 is trading 180.9% above its estimated GF Value™ of 円9,184.81.
GuruFocus considers Santec Holdings to be Significantly Overvalued.
Key valuation signals for TSE:6777:
Gross Margin %: 58.54% (12% above median its 10-year median of 52.07)
GF Value™: 円9,184.81 vs. price of 円25,800.00 (180.9% above fair value)
Industry Position: 138.7% above the Hardware median (#195 of 2453)
No single metric tells the full story. See the TSE:6777 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Santec Holdings Corp develops, manufactures and sells optical parts and optical measuring instruments. It operates in three segments namely the optical parts segment, the optical measuring instruments segment & the system solution segments. The company's product has application in White Papers, Optical Communication, Medical Imaging, Opto-electronics, Optical Instruments and AV Cable.
87GF Score
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