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ESPECTSE:6859 -2.45%90 Gross Margin % is 33.83% as of Mar. 2026, which is 2% below its 10-year median of 34.69. GuruFocus rates TSE:6859 with a GF Score™ of 90/100 and a GF Value™ of 円3,177.58 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,455 Hardware companies, ESPEC ranks better than 69.25% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. ESPEC's Gross Profit for the
three
months ended in Mar. 2026 was 円7,759 Mil. ESPEC's Revenue for the
three
months ended in Mar. 2026 was 円22,933 Mil. Therefore, ESPEC's Gross Margin % for the quarter that ended in Mar. 2026 was 33.83%.
The historical rank and industry rank for ESPEC's Gross Margin % or its related term are showing as below:
TSE:6859'
s Gross Margin % Range Over the Past 10 Years
Min: 33.46 Med: 34.69 Max: 35.91
Current: 34.69
During the past 13 years, the highestGross Margin % of ESPEC was 35.91%. The lowest was 33.46%. And the median was 34.69%.
TSE:6859's Gross Margin % is ranked better than 69.25% of 2455
companies
in the Hardware industry
Industry Median: 24.5
vs TSE:6859: 34.69
ESPEC had a gross margin of 33.83% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for ESPEC was 0.70% per year.
ESPEC (TSE:6859) 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
ESPEC had a gross margin of 33.83% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
ESPEC Gross Margin % Related Terms
ESPEC Gross Margin % Historical Data
* Premium members only.
The historical data trend for ESPEC'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:6859 vs COHR, KEYS, GRMN: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, ESPEC'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.
ESPEC Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, ESPEC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ESPEC'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.
ESPEC (TSE:6859) has a Gross Margin % of 33.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ESPEC and its competitors. This is near median its historical median of 34.69. Over the past decade, ESPEC's Gross Margin % has ranged from 33.46 to 35.91. According to the industry distribution chart, ESPEC ranks #755 out of 2455 companies in the Hardware industry, placing it in the top 30.8%.
Is ESPEC's Gross Margin % too high?
ESPEC's current Gross Margin % of 33.83% is near median its 10-year median of 34.69. Over the past 10 years, this metric has ranged from a low of 33.46 to a high of 35.91. The Hardware industry median Gross Margin % is 24.50. ESPEC's value of 33.83% is 38.1% above this industry median. Based on the distribution chart, ESPEC ranks #755 out of 2455 companies in the Hardware industry, which is above the industry midpoint. Overall, ESPEC has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ESPEC's Gross Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, ESPEC ranks #755 out of 2455 companies for Gross Margin %. This puts ESPEC in the upper half of its industry. The industry median Gross Margin % is 24.50. ESPEC's value of 33.83% is 38.1% above this benchmark. Historically, ESPEC's own Gross Margin % has ranged from 33.46 to 35.91 over the past decade. While the company's 10-year median is 34.69 vs. the industry median of 24.50, ESPEC 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,455 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. ESPEC's current Gross Margin % of 33.83% is 38.1% 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 ESPEC and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESPEC's current Gross Margin % is 33.83%, which is near median its own 10-year median of 34.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESPEC stock overvalued right now?
Based on GuruFocus' analysis, ESPEC (TSE:6859) is currently considered Modestly Overvalued. The stock's GF Value™ is 円3,177.58, compared to a current price of 円3,980.00 — trading 25.3% above its estimated fair value. The current Gross Margin % is 33.83%, which is near median its 10-year median of 34.69 and 38.1% above the Hardware industry median of 24.50. ESPEC's overall GF Score™ is 90/100 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 ESPEC (TSE:6859), the current Gross Margin % is 33.83% 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 ESPEC (TSE:6859) Overvalued in 2026?
Based on GuruFocus' analysis, ESPEC stock appears to be overvalued.
The current stock price of 円3,980.00 is trading 25.3% above its estimated GF Value™ of 円3,177.58.
GuruFocus considers ESPEC to be Modestly Overvalued.
Key valuation signals for TSE:6859:
Gross Margin %: 33.83% (near median its 10-year median of 34.69)
GF Value™: 円3,177.58 vs. price of 円3,980.00 (25.3% above fair value)
Industry Position: 38.1% above the Hardware median (#755 of 2455)
No single metric tells the full story. See the TSE:6859 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESPEC Corp is a Japanese manufacturer of environmental test chambers. It is engaged in the business divisions of Equipment business, Service business and Other business. In the Equipment business, the company offers environmental test chambers, secondary battery-related equipment, measurement and evaluation systems and semiconductor-related equipment. In the Service business, the entity offers after-sales service and engineering, laboratory testing services and other services. The organization offers its products in Japan and other countries.
90GF Score
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