Kinki Sharyo Co (TSE:7122) Gross Margin %: 6.94% (As of Mar. 2026) — 39% Below Median

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TSE:7122 Kinki Sharyo Co Ltd TSE:7122
63 GF Score
Price 円2,327.00
GF Value 円1,944.30
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Kinki Sharyo Co Gross Margin %?

Kinki Sharyo Co TSE:7122 63 Gross Margin % is 6.94% as of Mar. 2026, which is 39% below its 10-year median of 11.31. GuruFocus rates TSE:7122 with a GF Score™ of 63/100 and a GF Value™ of 円1,944.30 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 981 Transportation companies, Kinki Sharyo Co ranks worse than 78.7% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Kinki Sharyo Co's Gross Profit for the six months ended in Mar. 2026 was 円1,445 Mil. Kinki Sharyo Co's Revenue for the six months ended in Mar. 2026 was 円20,831 Mil. Therefore, Kinki Sharyo Co's Gross Margin % for the quarter that ended in Mar. 2026 was 6.94%.


The historical rank and industry rank for Kinki Sharyo Co's Gross Margin % or its related term are showing as below:

TSE:7122' s Gross Margin % Range Over the Past 10 Years
Min: -24.43   Med: 11.31   Max: 19.12
Current: 9.81


During the past 13 years, the highest Gross Margin % of Kinki Sharyo Co was 19.12%. The lowest was -24.43%. And the median was 11.31%.

TSE:7122's Gross Margin % is ranked worse than
78.7% of 981 companies
in the Transportation industry
Industry Median: 20.42 vs TSE:7122: 9.81

Kinki Sharyo Co had a gross margin of 6.94% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kinki Sharyo Co was 6.30% per year.


Kinki Sharyo Co  (TSE:7122) 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

Kinki Sharyo Co had a gross margin of 6.94% 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.


Kinki Sharyo Co Gross Margin % Related Terms


Kinki Sharyo Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Kinki Sharyo Co'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.

Kinki Sharyo Co Gross Margin % Chart

Kinki Sharyo Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.23 12.90 19.12 13.18 9.81

Kinki Sharyo Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.64 16.55 10.44 13.50 6.94

TSE:7122 vs UNP, CSX, NSC: Gross Margin % Comparison

For the Railroads subindustry, Kinki Sharyo 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.


Kinki Sharyo Co Gross Margin % vs Transportation Industry

For the Transportation industry and Industrials sector, Kinki Sharyo Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kinki Sharyo Co's Gross Margin % falls into.


TSE:7122
63GF Score
Kinki Sharyo Co Ltd TSE:7122
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kinki Sharyo Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Kinki Sharyo Co's Gross Margin for the fiscal year that ended in Mar. 2026 is calculated as

Gross Margin % (A: Mar. 2026 )=Gross Profit (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=3641 / 37100
=(Revenue - Cost of Goods Sold) / Revenue
=(37100 - 33459) / 37100
=9.81 %

Kinki Sharyo Co's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=1445 / 20831
=(Revenue - Cost of Goods Sold) / Revenue
=(20831 - 19386) / 20831
=6.94 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 6.94% mean?
Kinki Sharyo Co (TSE:7122) has a Gross Margin % of 6.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kinki Sharyo Co and its competitors. This is 39% below median its historical median of 11.31. According to the industry distribution chart, Kinki Sharyo Co ranks #772 out of 981 companies in the Transportation industry, placing it in the top 78.7%.
Is Kinki Sharyo Co's Gross Margin % too high?
Kinki Sharyo Co's current Gross Margin % of 6.94% is 39% below median its 10-year median of 11.31. The Transportation industry median Gross Margin % is 20.42. Kinki Sharyo Co's value of 6.94% is 66% below this industry median. Based on the distribution chart, Kinki Sharyo Co ranks #772 out of 981 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Kinki Sharyo Co has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kinki Sharyo Co's Gross Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Kinki Sharyo Co ranks #772 out of 981 companies for Gross Margin %. This places Kinki Sharyo Co in the lower half of its industry. The industry median Gross Margin % is 20.42. Kinki Sharyo Co's value of 6.94% is 66% below this benchmark. While the company's 10-year median is 11.31 vs. the industry median of 20.42, Kinki Sharyo 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 981 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. Kinki Sharyo Co's current Gross Margin % of 6.94% is 66% 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 Kinki Sharyo Co and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kinki Sharyo Co's current Gross Margin % is 6.94%, which is 39% below median its own 10-year median of 11.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kinki Sharyo Co stock overvalued right now?
Based on GuruFocus' analysis, Kinki Sharyo Co (TSE:7122) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,944.30, compared to a current price of 円2,327.00 — trading 19.7% above its estimated fair value. The current Gross Margin % is 6.94%, which is 39% below median its 10-year median of 11.31 and 66% below the Transportation industry median of 20.42. Kinki Sharyo Co's overall GF Score™ is 63/100 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 Kinki Sharyo Co (TSE:7122), the current Gross Margin % is 6.94% 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 Kinki Sharyo Co (TSE:7122) Overvalued in 2026?

Based on GuruFocus' analysis, Kinki Sharyo Co stock appears to be overvalued. The current stock price of 円2,327.00 is trading 19.7% above its estimated GF Value™ of 円1,944.30. GuruFocus considers Kinki Sharyo Co to be Modestly Overvalued.

Key valuation signals for TSE:7122:

  • Gross Margin %: 6.94% (39% below median its 10-year median of 11.31)
  • GF Value™: 円1,944.30 vs. price of 円2,327.00 (19.7% above fair value)
  • GF Score™: 63/100 with 5 warning signs
  • Industry Position: 66% below the Transportation median (#772 of 981)

No single metric tells the full story. See the TSE:7122 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kinki Sharyo Co Business Description

Address 2-2-46 Inada-Uemachi, Higashi-Osaka, Osaka, JPN, 5778511
Kinki Sharyo Co Ltd is a Japan-based company engaged in the manufacturing of rolling stock for its rail transit division. The company operates through two segments namely Rolling stock and Lease of real estate. Additionally, it offers bullet, limited express, and commuter trains, and light rail vehicles as well as low floor light rail vehicles, passenger cars, and electric cars.
63GF Score

Get the complete analysis for TSE:7122

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,327.00
Price
円1,944.30
GF Value