HKS CoTSE:7219 +0.04%73 Gross Margin % is 41.43% as of Feb. 2026, which is 6% above its 10-year median of 39.15. GuruFocus rates TSE:7219 with a GF Score™ of 73/100 and a GF Value™ of 円2,124.02 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,307 Vehicles & Parts companies, HKS Co ranks better than 86.69% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. HKS Co's Gross Profit for the
six
months ended in Feb. 2026 was 円1,833 Mil. HKS Co's Revenue for the
six
months ended in Feb. 2026 was 円4,424 Mil. Therefore, HKS Co's Gross Margin % for the quarter that ended in Feb. 2026 was 41.43%.
The historical rank and industry rank for HKS Co's Gross Margin % or its related term are showing as below:
TSE:7219'
s Gross Margin % Range Over the Past 10 Years
Min: 36.81 Med: 39.15 Max: 40.92
Current: 40.57
During the past 13 years, the highestGross Margin % of HKS Co was 40.92%. The lowest was 36.81%. And the median was 39.15%.
TSE:7219's Gross Margin % is ranked better than 86.69% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 19.83
vs TSE:7219: 40.57
HKS Co had a gross margin of 41.43% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for HKS Co was 1.30% per year.
HKS Co (TSE:7219) 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
HKS Co had a gross margin of 41.43% for the quarter that ended in Feb. 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.
HKS Co Gross Margin % Related Terms
HKS Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for HKS 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.
For the Auto Parts subindustry, HKS 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.
HKS Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, HKS Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HKS 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.
HKS Co (TSE:7219) has a Gross Margin % of 41.43% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HKS Co and its competitors. This is near median its historical median of 39.15. Over the past decade, HKS Co's Gross Margin % has ranged from 36.81 to 40.92. According to the industry distribution chart, HKS Co ranks #174 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 13.3%.
Is HKS Co's Gross Margin % too high?
HKS Co's current Gross Margin % of 41.43% is near median its 10-year median of 39.15. Over the past 10 years, this metric has ranged from a low of 36.81 to a high of 40.92. The Vehicles & Parts industry median Gross Margin % is 19.83. HKS Co's value of 41.43% is 108.9% above this industry median. Based on the distribution chart, HKS Co ranks #174 out of 1307 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, HKS Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does HKS Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, HKS Co ranks #174 out of 1307 companies for Gross Margin %. This places HKS Co in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.83. HKS Co's value of 41.43% is 108.9% above this benchmark. Historically, HKS Co's own Gross Margin % has ranged from 36.81 to 40.92 over the past decade. While the company's 10-year median is 39.15 vs. the industry median of 19.83, HKS Co 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.83, based on 1,307 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. HKS Co's current Gross Margin % of 41.43% is 108.9% 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 HKS Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HKS Co's current Gross Margin % is 41.43%, which is near median its own 10-year median of 39.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HKS Co stock overvalued right now?
Based on GuruFocus' analysis, HKS Co (TSE:7219) is currently considered Fairly Valued. The stock's GF Value™ is 円2,124.02, compared to a current price of 円2,330.00 — trading 9.7% above its estimated fair value. The current Gross Margin % is 41.43%, which is near median its 10-year median of 39.15 and 108.9% above the Vehicles & Parts industry median of 19.83. HKS Co's overall GF Score™ is 73/100 with 4 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 HKS Co (TSE:7219), the current Gross Margin % is 41.43% as of Feb. 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 HKS Co (TSE:7219) Overvalued in 2026?
Based on GuruFocus' analysis, HKS Co stock appears to be overvalued.
The current stock price of 円2,330.00 is trading 9.7% above its estimated GF Value™ of 円2,124.02.
GuruFocus considers HKS Co to be Fairly Valued.
Key valuation signals for TSE:7219:
Gross Margin %: 41.43% (near median its 10-year median of 39.15)
GF Value™: 円2,124.02 vs. price of 円2,330.00 (9.7% above fair value)
Industry Position: 108.9% above the Vehicles & Parts median (#174 of 1307)
No single metric tells the full story. See the TSE:7219 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HKS Co Ltd is a Japan-based company engaged in the design, development, and manufacturing of automobile parts including original exhaust systems and suspension, turbocharger, suspensions, electronic parts, and related parts are mainstream.
73GF Score
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