Obara GroupTSE:6877 -5.06%81 Gross Margin % is 32.55% as of Mar. 2026, which is 2% below its 10-year median of 33.23. GuruFocus rates TSE:6877 with a GF Score™ of 81/100 and a GF Value™ of 円5,102.04 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,996 Industrial Products companies, Obara Group ranks better than 64.85% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Obara Group's Gross Profit for the
three
months ended in Mar. 2026 was 円5,741 Mil. Obara Group's Revenue for the
three
months ended in Mar. 2026 was 円17,638 Mil. Therefore, Obara Group's Gross Margin % for the quarter that ended in Mar. 2026 was 32.55%.
The historical rank and industry rank for Obara Group's Gross Margin % or its related term are showing as below:
TSE:6877'
s Gross Margin % Range Over the Past 10 Years
Min: 31.74 Med: 33.23 Max: 35.34
Current: 32.66
During the past 13 years, the highestGross Margin % of Obara Group was 35.34%. The lowest was 31.74%. And the median was 33.23%.
TSE:6877's Gross Margin % is ranked better than 64.85% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs TSE:6877: 32.66
Obara Group had a gross margin of 32.55% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Obara Group was 0.20% per year.
Obara Group (TSE:6877) 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
Obara Group had a gross margin of 32.55% 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.
Obara Group Gross Margin % Related Terms
Obara Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Obara Group'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:6877 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Obara Group'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.
Obara Group Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Obara Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Obara Group'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.
Obara Group (TSE:6877) has a Gross Margin % of 32.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Obara Group and its competitors. This is near median its historical median of 33.23. Over the past decade, Obara Group's Gross Margin % has ranged from 31.74 to 35.34. According to the industry distribution chart, Obara Group ranks #1053 out of 2996 companies in the Industrial Products industry, placing it in the top 35.1%.
Is Obara Group's Gross Margin % too high?
Obara Group's current Gross Margin % of 32.55% is near median its 10-year median of 33.23. Over the past 10 years, this metric has ranged from a low of 31.74 to a high of 35.34. The Industrial Products industry median Gross Margin % is 26.80. Obara Group's value of 32.55% is 21.5% above this industry median. Based on the distribution chart, Obara Group ranks #1053 out of 2996 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Obara Group has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Obara Group's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Obara Group ranks #1053 out of 2996 companies for Gross Margin %. This puts Obara Group in the upper half of its industry. The industry median Gross Margin % is 26.80. Obara Group's value of 32.55% is 21.5% above this benchmark. Historically, Obara Group's own Gross Margin % has ranged from 31.74 to 35.34 over the past decade. While the company's 10-year median is 33.23 vs. the industry median of 26.80, Obara Group 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. Obara Group's current Gross Margin % of 32.55% is 21.5% 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 Obara Group 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. Obara Group's current Gross Margin % is 32.55%, which is near median its own 10-year median of 33.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Obara Group stock overvalued right now?
Based on GuruFocus' analysis, Obara Group (TSE:6877) is currently considered Modestly Overvalued. The stock's GF Value™ is 円5,102.04, compared to a current price of 円6,000.00 — trading 17.6% above its estimated fair value. The current Gross Margin % is 32.55%, which is near median its 10-year median of 33.23 and 21.5% above the Industrial Products industry median of 26.80. Obara Group's overall GF Score™ is 81/100 with 3 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 Obara Group (TSE:6877), the current Gross Margin % is 32.55% 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 Obara Group (TSE:6877) Overvalued in 2026?
Based on GuruFocus' analysis, Obara Group stock appears to be overvalued.
The current stock price of 円6,000.00 is trading 17.6% above its estimated GF Value™ of 円5,102.04.
GuruFocus considers Obara Group to be Modestly Overvalued.
Key valuation signals for TSE:6877:
Gross Margin %: 32.55% (near median its 10-year median of 33.23)
GF Value™: 円5,102.04 vs. price of 円6,000.00 (17.6% above fair value)
Industry Position: 21.5% above the Industrial Products median (#1053 of 2996)
No single metric tells the full story. See the TSE:6877 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Obara Group Inc is a Japanese supplier of welding and polishing solutions. The company offers resistance welding systems for the automotive industry and arc welding tools for the shipbuilding and construction industries. The polishing business sells polishing machines under the SpeedFam brand primarily to electronic and precision industries, including the treatment of silicon wafers, mobile phones and personal computer electronics, flat panels, memory disks, and opto-electronic parts.
81GF Score
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