AzbilTSE:6845 -0.41%88 Gross Margin % is 47.17% as of Mar. 2026, which is 17% above its 10-year median of 40.24. GuruFocus rates TSE:6845 with a GF Score™ of 88/100 and a GF Value™ of 円1,304.02 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,996 Industrial Products companies, Azbil ranks better than 86.68% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Azbil's Gross Profit for the
three
months ended in Mar. 2026 was 円42,863 Mil. Azbil's Revenue for the
three
months ended in Mar. 2026 was 円90,875 Mil. Therefore, Azbil's Gross Margin % for the quarter that ended in Mar. 2026 was 47.17%.
The historical rank and industry rank for Azbil's Gross Margin % or its related term are showing as below:
TSE:6845'
s Gross Margin % Range Over the Past 10 Years
Min: 35.91 Med: 40.24 Max: 46.69
Current: 46.69
During the past 13 years, the highestGross Margin % of Azbil was 46.69%. The lowest was 35.91%. And the median was 40.24%.
TSE:6845's Gross Margin % is ranked better than 86.68% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs TSE:6845: 46.69
Azbil had a gross margin of 47.17% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Azbil was 2.80% per year.
Azbil (TSE:6845) 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
Azbil had a gross margin of 47.17% 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.
Azbil Gross Margin % Related Terms
Azbil Gross Margin % Historical Data
* Premium members only.
The historical data trend for Azbil'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:6845 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Azbil'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.
Azbil Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Azbil's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Azbil'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.
Azbil (TSE:6845) has a Gross Margin % of 47.17% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Azbil and its competitors. This is 17% above median its historical median of 40.24. Over the past decade, Azbil's Gross Margin % has ranged from 35.91 to 46.69. According to the industry distribution chart, Azbil ranks #399 out of 2996 companies in the Industrial Products industry, placing it in the top 13.3%.
Is Azbil's Gross Margin % too high?
Azbil's current Gross Margin % of 47.17% is 17% above median its 10-year median of 40.24. Over the past 10 years, this metric has ranged from a low of 35.91 to a high of 46.69. The Industrial Products industry median Gross Margin % is 26.80. Azbil's value of 47.17% is 76% above this industry median. Based on the distribution chart, Azbil ranks #399 out of 2996 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Azbil has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Azbil's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Azbil ranks #399 out of 2996 companies for Gross Margin %. This places Azbil in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.80. Azbil's value of 47.17% is 76% above this benchmark. Historically, Azbil's own Gross Margin % has ranged from 35.91 to 46.69 over the past decade. While the company's 10-year median is 40.24 vs. the industry median of 26.80, Azbil 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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. Azbil's current Gross Margin % of 47.17% is 76% 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 Azbil and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azbil's current Gross Margin % is 47.17%, which is 17% above median its own 10-year median of 40.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azbil stock overvalued right now?
Based on GuruFocus' analysis, Azbil (TSE:6845) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,304.02, compared to a current price of 円1,712.50 — trading 31.3% above its estimated fair value. The current Gross Margin % is 47.17%, which is 17% above median its 10-year median of 40.24 and 76% above the Industrial Products industry median of 26.80. Azbil's overall GF Score™ is 88/100 with 5 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 Azbil (TSE:6845), the current Gross Margin % is 47.17% 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 Azbil (TSE:6845) Overvalued in 2026?
Based on GuruFocus' analysis, Azbil stock appears to be overvalued.
The current stock price of 円1,712.50 is trading 31.3% above its estimated GF Value™ of 円1,304.02.
GuruFocus considers Azbil to be Significantly Overvalued.
Key valuation signals for TSE:6845:
Gross Margin %: 47.17% (17% above median its 10-year median of 40.24)
GF Value™: 円1,304.02 vs. price of 円1,712.50 (31.3% above fair value)
Industry Position: 76% above the Industrial Products median (#399 of 2996)
No single metric tells the full story. See the TSE:6845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Azbil Corp is a Japan-based company engaged in the automation business. The company operates through three reportable segments: Building Automation Business, Advanced Automation Business, and Life Automation Business. The Building Automation Business provides products, engineering, and services such as automatic air conditioning control and security systems for commercial buildings and production facilities. The Advanced Automation Business offers control systems, switches, and sensors, along with engineering and maintenance services for factories and plants. The Life Automation Business manufactures and sells meters, measuring instruments, and residential air conditioning systems for home builders. It generates the majority of its revenue from the Building Automation Business segment.
88GF Score
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