Shindengen Electric Manufacturing Co (TSE:6844) 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
Shindengen Electric Manufacturing Co had a gross margin of 14.49% 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.
Shindengen Electric Manufacturing Co Gross Margin % Related Terms
Shindengen Electric Manufacturing 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.
Shindengen Electric Manufacturing Co Gross Margin % Chart
For the Electronic Components subindustry, Shindengen Electric Manufacturing 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.
Shindengen Electric Manufacturing Co Gross Margin % vs Hardware Industry
* 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.
Shindengen Electric Manufacturing Co (TSE:6844) has a Gross Margin % of 14.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shindengen Electric Manufacturing Co and its competitors. This is 13% below median its historical median of 16.63. Over the past decade, Shindengen Electric Manufacturing Co's Gross Margin % has ranged from 13.56 to 21.20. According to the industry distribution chart, Shindengen Electric Manufacturing Co ranks #1777 out of 2453 companies in the Hardware industry, placing it in the top 72.4%.
Is Shindengen Electric Manufacturing Co's Gross Margin % too high?
Shindengen Electric Manufacturing Co's current Gross Margin % of 14.49% is 13% below median its 10-year median of 16.63. Over the past 10 years, this metric has ranged from a low of 13.56 to a high of 21.20. The Hardware industry median Gross Margin % is 24.52. Shindengen Electric Manufacturing Co's value of 14.49% is 40.9% below this industry median. Based on the distribution chart, Shindengen Electric Manufacturing Co ranks #1777 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, Shindengen Electric Manufacturing Co has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shindengen Electric Manufacturing Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Shindengen Electric Manufacturing Co ranks #1777 out of 2453 companies for Gross Margin %. This places Shindengen Electric Manufacturing Co in the lower half of its industry. The industry median Gross Margin % is 24.52. Shindengen Electric Manufacturing Co's value of 14.49% is 40.9% below this benchmark. Historically, Shindengen Electric Manufacturing Co's own Gross Margin % has ranged from 13.56 to 21.20 over the past decade. While the company's 10-year median is 16.63 vs. the industry median of 24.52, Shindengen Electric Manufacturing 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 24.52, 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. Shindengen Electric Manufacturing Co's current Gross Margin % of 14.49% is 40.9% 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 Shindengen Electric Manufacturing Co 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. Shindengen Electric Manufacturing Co's current Gross Margin % is 14.49%, which is 13% below median its own 10-year median of 16.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shindengen Electric Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Shindengen Electric Manufacturing Co (TSE:6844) is currently considered Modestly Overvalued. The stock's GF Value™ is 円3,351.27, compared to a current price of 円3,825.00 — trading 14.1% above its estimated fair value. The current Gross Margin % is 14.49%, which is 13% below median its 10-year median of 16.63 and 40.9% below the Hardware industry median of 24.52. Shindengen Electric Manufacturing Co's overall GF Score™ is 75/100 with 7 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 Shindengen Electric Manufacturing Co (TSE:6844), the current Gross Margin % is 14.49% 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 Shindengen Electric Manufacturing Co (TSE:6844) Overvalued in 2026?
Based on GuruFocus' analysis, Shindengen Electric Manufacturing Co stock appears to be overvalued.
The current stock price of 円3,825.00 is trading 14.1% above its estimated GF Value™ of 円3,351.27.
GuruFocus considers Shindengen Electric Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSE:6844:
Gross Margin %: 14.49% (13% below median its 10-year median of 16.63)
GF Value™: 円3,351.27 vs. price of 円3,825.00 (14.1% above fair value)
Industry Position: 40.9% below the Hardware median (#1777 of 2453)
No single metric tells the full story. See the TSE:6844 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shindengen Electric Manufacturing Co Business Description
Shindengen Electric Manufacturing Co Ltd is an electronics manufacturer that develops, manufactures and sells high-efficiency, low-noise semiconductors as well as car electronics and power system products. The company's business is organized into three reportable segments: Device business, Car Electronics business and Next Generation Energy business. It earns majority of the revenue from Car Electronics business. Shindengen has its operations in Japan, Indonesia, Asia, and other areas.
75GF Score
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