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Japan Electronic MaterialsTSE:6855 -1.67%78 Gross Margin % is 44.31% as of Mar. 2026, which is 36% above its 10-year median of 32.48. GuruFocus rates TSE:6855 with a GF Score™ of 78/100 and a GF Value™ of 円3,404.82 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,010 Semiconductors companies, Japan Electronic Materials ranks better than 74.85% on this metric.
Japan Electronic Materials (TSE:6855) 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
Japan Electronic Materials had a gross margin of 44.31% 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.
Japan Electronic Materials Gross Margin % Related Terms
Japan Electronic Materials 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:6855 vs AMAT, LRCX, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Japan Electronic Materials'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.
Japan Electronic Materials Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Japan Electronic Materials's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Electronic Materials'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.
Japan Electronic Materials (TSE:6855) has a Gross Margin % of 44.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Electronic Materials and its competitors. This is 36% above median its historical median of 32.48. Over the past decade, Japan Electronic Materials' Gross Margin % has ranged from 25.53 to 43.87. According to the industry distribution chart, Japan Electronic Materials ranks #254 out of 1010 companies in the Semiconductors industry, placing it in the top 25.1%.
Is Japan Electronic Materials' Gross Margin % too high?
Japan Electronic Materials' current Gross Margin % of 44.31% is 36% above median its 10-year median of 32.48. Over the past 10 years, this metric has ranged from a low of 25.53 to a high of 43.87. The Semiconductors industry median Gross Margin % is 29.61. Japan Electronic Materials' value of 44.31% is 49.6% above this industry median. Based on the distribution chart, Japan Electronic Materials ranks #254 out of 1010 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Japan Electronic Materials has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Electronic Materials' Gross Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Japan Electronic Materials ranks #254 out of 1010 companies for Gross Margin %. This puts Japan Electronic Materials in the upper half of its industry. The industry median Gross Margin % is 29.61. Japan Electronic Materials' value of 44.31% is 49.6% above this benchmark. Historically, Japan Electronic Materials' own Gross Margin % has ranged from 25.53 to 43.87 over the past decade. While the company's 10-year median is 32.48 vs. the industry median of 29.61, Japan Electronic Materials 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,010 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. Japan Electronic Materials's current Gross Margin % of 44.31% is 49.6% 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 Japan Electronic Materials and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Electronic Materials's current Gross Margin % is 44.31%, which is 36% above median its own 10-year median of 32.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Electronic Materials stock overvalued right now?
Based on GuruFocus' analysis, Japan Electronic Materials (TSE:6855) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,404.82, compared to a current price of 円7,080.00 — trading 107.9% above its estimated fair value. The current Gross Margin % is 44.31%, which is 36% above median its 10-year median of 32.48 and 49.6% above the Semiconductors industry median of 29.61. Japan Electronic Materials' overall GF Score™ is 78/100 with 2 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 Japan Electronic Materials (TSE:6855), the current Gross Margin % is 44.31% 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 Japan Electronic Materials (TSE:6855) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Electronic Materials stock appears to be overvalued.
The current stock price of 円7,080.00 is trading 107.9% above its estimated GF Value™ of 円3,404.82.
GuruFocus considers Japan Electronic Materials to be Significantly Overvalued.
Key valuation signals for TSE:6855:
Gross Margin %: 44.31% (36% above median its 10-year median of 32.48)
GF Value™: 円3,404.82 vs. price of 円7,080.00 (107.9% above fair value)
Industry Position: 49.6% above the Semiconductors median (#254 of 1010)
No single metric tells the full story. See the TSE:6855 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Electronic Materials Corp is engaged in the development, manufacture, and sale of semiconductor testing components and electron tube components in Japan. Its product portfolio comprises heaters and cathodes for receiving tubes and CRTs, filaments for fluorescent display tubes, directly heated cathodes, and probe cards, among others. The group's business segments are Semiconductor inspection parts related business, which derives maximum revenue, and Electron tube parts related business.
78GF Score
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