Hokuriku Electric Industry Co (TSE:6989) 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
Hokuriku Electric Industry Co had a gross margin of 18.92% 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.
Hokuriku Electric Industry Co Gross Margin % Related Terms
Hokuriku Electric Industry 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.
Hokuriku Electric Industry Co Gross Margin % Chart
For the Electronic Components subindustry, Hokuriku Electric Industry 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.
Hokuriku Electric Industry Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hokuriku Electric Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hokuriku Electric Industry Co'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.
Hokuriku Electric Industry Co (TSE:6989) has a Gross Margin % of 18.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hokuriku Electric Industry Co and its competitors. This is 16% above median its historical median of 16.27. Over the past decade, Hokuriku Electric Industry Co's Gross Margin % has ranged from 14.32 to 19.87. According to the industry distribution chart, Hokuriku Electric Industry Co ranks #1506 out of 2450 companies in the Hardware industry, placing it in the top 61.5%.
Is Hokuriku Electric Industry Co's Gross Margin % too high?
Hokuriku Electric Industry Co's current Gross Margin % of 18.92% is 16% above median its 10-year median of 16.27. Over the past 10 years, this metric has ranged from a low of 14.32 to a high of 19.87. The Hardware industry median Gross Margin % is 24.50. Hokuriku Electric Industry Co's value of 18.92% is 22.8% below this industry median. Based on the distribution chart, Hokuriku Electric Industry Co ranks #1506 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, Hokuriku Electric Industry Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hokuriku Electric Industry Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Hokuriku Electric Industry Co ranks #1506 out of 2450 companies for Gross Margin %. This places Hokuriku Electric Industry Co in the lower half of its industry. The industry median Gross Margin % is 24.50. Hokuriku Electric Industry Co's value of 18.92% is 22.8% below this benchmark. Historically, Hokuriku Electric Industry Co's own Gross Margin % has ranged from 14.32 to 19.87 over the past decade. While the company's 10-year median is 16.27 vs. the industry median of 24.50, Hokuriku Electric Industry 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 24.50, based on 2,450 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. Hokuriku Electric Industry Co's current Gross Margin % of 18.92% is 22.8% 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 Hokuriku Electric Industry Co 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. Hokuriku Electric Industry Co's current Gross Margin % is 18.92%, which is 16% above median its own 10-year median of 16.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hokuriku Electric Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Hokuriku Electric Industry Co (TSE:6989) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,561.29, compared to a current price of 円2,748.00 — trading 76% above its estimated fair value. The current Gross Margin % is 18.92%, which is 16% above median its 10-year median of 16.27 and 22.8% below the Hardware industry median of 24.50. Hokuriku Electric Industry Co's overall GF Score™ is 58/100 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 Hokuriku Electric Industry Co (TSE:6989), the current Gross Margin % is 18.92% 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 Hokuriku Electric Industry Co (TSE:6989) Overvalued in 2026?
Based on GuruFocus' analysis, Hokuriku Electric Industry Co stock appears to be overvalued.
The current stock price of 円2,748.00 is trading 76% above its estimated GF Value™ of 円1,561.29.
GuruFocus considers Hokuriku Electric Industry Co to be Significantly Overvalued.
Key valuation signals for TSE:6989:
Gross Margin %: 18.92% (16% above median its 10-year median of 16.27)
GF Value™: 円1,561.29 vs. price of 円2,748.00 (76% above fair value)
Industry Position: 22.8% below the Hardware median (#1506 of 2450)
No single metric tells the full story. See the TSE:6989 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hokuriku Electric Industry Co Business Description
Hokuriku Electric Industry Co Ltd operates in development, manufacturing and sales of electronic components such as Resistors, Sensors, Modules Printed Circuit Boards, Piezoelectric Buzzers, Tactile Switches, Thermistors and Varistors.
58GF Score
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