Toa (Electric Appliances)TSE:6809 -0.83%82 Gross Margin % is 40.78% as of Mar. 2026, which is 6% below its 10-year median of 43.41. GuruFocus rates TSE:6809 with a GF Score™ of 82/100 and a GF Value™ of 円1,277.03 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,007 Business Services companies, Toa (Electric Appliances) ranks better than 63.36% on this metric.
Toa (Electric Appliances) (TSE:6809) 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
Toa (Electric Appliances) had a gross margin of 40.78% 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.
Toa (Electric Appliances) Gross Margin % Related Terms
Toa (Electric Appliances) 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.
TSE:6809 vs ALLE, MSA, ADT: Gross Margin % Comparison
For the Security & Protection Services subindustry, Toa (Electric Appliances)'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.
Toa (Electric Appliances) Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Toa (Electric Appliances)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Toa (Electric Appliances)'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.
Toa (Electric Appliances) (TSE:6809) has a Gross Margin % of 40.78% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Toa (Electric Appliances) and its competitors. This is near median its historical median of 43.41. Over the past decade, Toa (Electric Appliances)'s Gross Margin % has ranged from 40.23 to 44.63. According to the industry distribution chart, Toa (Electric Appliances) ranks #369 out of 1007 companies in the Business Services industry, placing it in the top 36.6%.
Is Toa (Electric Appliances)'s Gross Margin % too high?
Toa (Electric Appliances)'s current Gross Margin % of 40.78% is near median its 10-year median of 43.41. Over the past 10 years, this metric has ranged from a low of 40.23 to a high of 44.63. The Business Services industry median Gross Margin % is 34.50. Toa (Electric Appliances)'s value of 40.78% is 18.2% above this industry median. Based on the distribution chart, Toa (Electric Appliances) ranks #369 out of 1007 companies in the Business Services industry, which is above the industry midpoint. Overall, Toa (Electric Appliances) has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toa (Electric Appliances)'s Gross Margin % compare to ALLE and MSA?
According to the Business Services industry distribution chart, Toa (Electric Appliances) ranks #369 out of 1007 companies for Gross Margin %. This puts Toa (Electric Appliances) in the upper half of its industry. The industry median Gross Margin % is 34.50. Toa (Electric Appliances)'s value of 40.78% is 18.2% above this benchmark. Historically, Toa (Electric Appliances)'s own Gross Margin % has ranged from 40.23 to 44.63 over the past decade. While the company's 10-year median is 43.41 vs. the industry median of 34.50, Toa (Electric Appliances) 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 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. Toa (Electric Appliances)'s current Gross Margin % of 40.78% is 18.2% 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 Toa (Electric Appliances) and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toa (Electric Appliances)'s current Gross Margin % is 40.78%, which is near median its own 10-year median of 43.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toa (Electric Appliances) stock overvalued right now?
Based on GuruFocus' analysis, Toa (Electric Appliances) (TSE:6809) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,277.03, compared to a current price of 円1,552.00 — trading 21.5% above its estimated fair value. The current Gross Margin % is 40.78%, which is near median its 10-year median of 43.41 and 18.2% above the Business Services industry median of 34.50. Toa (Electric Appliances)'s overall GF Score™ is 82/100 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 Toa (Electric Appliances) (TSE:6809), the current Gross Margin % is 40.78% 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 Toa (Electric Appliances) (TSE:6809) Overvalued in 2026?
Based on GuruFocus' analysis, Toa (Electric Appliances) stock appears to be overvalued.
The current stock price of 円1,552.00 is trading 21.5% above its estimated GF Value™ of 円1,277.03.
GuruFocus considers Toa (Electric Appliances) to be Modestly Overvalued.
Key valuation signals for TSE:6809:
Gross Margin %: 40.78% (near median its 10-year median of 43.41)
GF Value™: 円1,277.03 vs. price of 円1,552.00 (21.5% above fair value)
Industry Position: 18.2% above the Business Services median (#369 of 1007)
No single metric tells the full story. See the TSE:6809 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toa Corporation (Electric Appliances) is mainly engaged in the manufacture and sale of loudspeaker broadcasting and communication equipment. It operates in three business divisions including Acoustic equipment business, Security equipment business and other. Acoustic equipment business manufactures loudspeaker broadcasting equipment, Professional sound equipment, and communication equipment. Security equipment business manufactures video equipment. Other business segment includes Leasing of equipment and management hall. Its product offerings include microphone, amplifier, speaker, megaphone, professional sound system, digital mixing system, Intercom system, telephone application system, wireless microphone system, contact wireless system, among others.
82GF Score
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