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Foster Electric CoTSE:6794 -0.81%68 Gross Margin % is 16.86% as of Mar. 2026, which is 27% above its 10-year median of 13.25. GuruFocus rates TSE:6794 with a GF Score™ of 68/100 and a GF Value™ of 円1,588.96 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,453 Hardware companies, Foster Electric Co ranks worse than 66.98% on this metric.
The historical rank and industry rank for Foster Electric Co's Gross Margin % or its related term are showing as below:
TSE:6794'
s Gross Margin % Range Over the Past 10 Years
Min: 8.21 Med: 13.25 Max: 17.53
Current: 17.53
During the past 13 years, the highestGross Margin % of Foster Electric Co was 17.53%. The lowest was 8.21%. And the median was 13.25%.
TSE:6794's Gross Margin % is ranked worse than 66.98% of 2453
companies
in the Hardware industry
Industry Median: 24.49
vs TSE:6794: 17.53
Foster Electric Co had a gross margin of 16.86% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Foster Electric Co was 11.80% per year.
Foster Electric Co (TSE:6794) 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
Foster Electric Co had a gross margin of 16.86% 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.
Foster Electric Co Gross Margin % Related Terms
Foster Electric Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Foster Electric 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.
For the Consumer Electronics subindustry, Foster Electric 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.
Foster Electric Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Foster Electric Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Foster Electric 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.
Foster Electric Co (TSE:6794) has a Gross Margin % of 16.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Foster Electric Co and its competitors. This is 27% above median its historical median of 13.25. Over the past decade, Foster Electric Co's Gross Margin % has ranged from 8.21 to 17.53. According to the industry distribution chart, Foster Electric Co ranks #1643 out of 2453 companies in the Hardware industry, placing it in the top 67%.
Is Foster Electric Co's Gross Margin % too high?
Foster Electric Co's current Gross Margin % of 16.86% is 27% above median its 10-year median of 13.25. Over the past 10 years, this metric has ranged from a low of 8.21 to a high of 17.53. The Hardware industry median Gross Margin % is 24.49. Foster Electric Co's value of 16.86% is 31.2% below this industry median. Based on the distribution chart, Foster Electric Co ranks #1643 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, Foster Electric Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Foster Electric Co's Gross Margin % compare to AAPL?
According to the Hardware industry distribution chart, Foster Electric Co ranks #1643 out of 2453 companies for Gross Margin %. This places Foster Electric Co in the lower half of its industry. The industry median Gross Margin % is 24.49. Foster Electric Co's value of 16.86% is 31.2% below this benchmark. Historically, Foster Electric Co's own Gross Margin % has ranged from 8.21 to 17.53 over the past decade. While the company's 10-year median is 13.25 vs. the industry median of 24.49, Foster Electric 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.49, 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. Foster Electric Co's current Gross Margin % of 16.86% is 31.2% 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 Foster Electric Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Foster Electric Co's current Gross Margin % is 16.86%, which is 27% above median its own 10-year median of 13.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Foster Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Foster Electric Co (TSE:6794) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,588.96, compared to a current price of 円2,833.00 — trading 78.3% above its estimated fair value. The current Gross Margin % is 16.86%, which is 27% above median its 10-year median of 13.25 and 31.2% below the Hardware industry median of 24.49. Foster Electric Co's overall GF Score™ is 68/100 with 1 warning sign 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 Foster Electric Co (TSE:6794), the current Gross Margin % is 16.86% 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 Foster Electric Co (TSE:6794) Overvalued in 2026?
Based on GuruFocus' analysis, Foster Electric Co stock appears to be overvalued.
The current stock price of 円2,833.00 is trading 78.3% above its estimated GF Value™ of 円1,588.96.
GuruFocus considers Foster Electric Co to be Significantly Overvalued.
Key valuation signals for TSE:6794:
Gross Margin %: 16.86% (27% above median its 10-year median of 13.25)
GF Value™: 円1,588.96 vs. price of 円2,833.00 (78.3% above fair value)
Industry Position: 31.2% below the Hardware median (#1643 of 2453)
No single metric tells the full story. See the TSE:6794 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Foster Electric Co Ltd is a Japan-based company that conducts operation through four segments. The information and communication components and products segment produces and sells headsets and small speakers for mobile phones and commercial microphones, and this segment contributes around half of total revenue. The automotive components and products segment produces car speakers and car speaker systems. The acoustic components and products segment offers speakers and speaker systems for audio devices and TVs, amplifier built-in speakers, headphones, and others. The other segment offers Fostex brand products, micro acoustic components, and logistics services. The company has manufacturing bases in various countries, such as China, Vietnam, South Korea, Indonesia, and elsewhere.
68GF Score
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