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Kyokuto Kaihatsu Kogyo CoTSE:7226 -1.77%67 Gross Margin % is 18.49% as of Mar. 2026, which is 2% below its 10-year median of 18.80. GuruFocus rates TSE:7226 with a GF Score™ of 67/100 and a GF Value™ of 円3,130.38 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 210 Farm & Heavy Construction Machinery companies, Kyokuto Kaihatsu Kogyo Co ranks worse than 76.67% on this metric.
TSE:7226's Gross Margin % is ranked worse than 76.67% of 210
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.545
vs TSE:7226: 18.50
Kyokuto Kaihatsu Kogyo Co had a gross margin of 18.49% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Kyokuto Kaihatsu Kogyo Co (TSE:7226) 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
Kyokuto Kaihatsu Kogyo Co had a gross margin of 18.49% 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.
Kyokuto Kaihatsu Kogyo Co Gross Margin % Related Terms
Kyokuto Kaihatsu Kogyo 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.
TSE:7226 vs CAT, DE, PCAR: Gross Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Kyokuto Kaihatsu Kogyo 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.
Kyokuto Kaihatsu Kogyo Co Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Kyokuto Kaihatsu Kogyo Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kyokuto Kaihatsu Kogyo 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.
Kyokuto Kaihatsu Kogyo Co (TSE:7226) has a Gross Margin % of 18.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kyokuto Kaihatsu Kogyo Co and its competitors. This is near median its historical median of 18.80. Over the past decade, Kyokuto Kaihatsu Kogyo Co's Gross Margin % has ranged from 14.15 to 22.01. According to the industry distribution chart, Kyokuto Kaihatsu Kogyo Co ranks #161 out of 210 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 76.7%.
Is Kyokuto Kaihatsu Kogyo Co's Gross Margin % too high?
Kyokuto Kaihatsu Kogyo Co's current Gross Margin % of 18.49% is near median its 10-year median of 18.80. Over the past 10 years, this metric has ranged from a low of 14.15 to a high of 22.01. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.55. Kyokuto Kaihatsu Kogyo Co's value of 18.49% is 27.6% below this industry median. Based on the distribution chart, Kyokuto Kaihatsu Kogyo Co ranks #161 out of 210 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Kyokuto Kaihatsu Kogyo Co has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kyokuto Kaihatsu Kogyo Co's Gross Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Kyokuto Kaihatsu Kogyo Co ranks #161 out of 210 companies for Gross Margin %. This places Kyokuto Kaihatsu Kogyo Co in the lower half of its industry. The industry median Gross Margin % is 25.55. Kyokuto Kaihatsu Kogyo Co's value of 18.49% is 27.6% below this benchmark. Historically, Kyokuto Kaihatsu Kogyo Co's own Gross Margin % has ranged from 14.15 to 22.01 over the past decade. While the company's 10-year median is 18.80 vs. the industry median of 25.55, Kyokuto Kaihatsu Kogyo 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 Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.55, based on 210 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. Kyokuto Kaihatsu Kogyo Co's current Gross Margin % of 18.49% is 27.6% 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 Kyokuto Kaihatsu Kogyo Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kyokuto Kaihatsu Kogyo Co's current Gross Margin % is 18.49%, which is near median its own 10-year median of 18.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kyokuto Kaihatsu Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Kyokuto Kaihatsu Kogyo Co (TSE:7226) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,130.38, compared to a current price of 円2,275.00 — trading 27.3% below its estimated fair value. The current Gross Margin % is 18.49%, which is near median its 10-year median of 18.80 and 27.6% below the Farm & Heavy Construction Machinery industry median of 25.55. Kyokuto Kaihatsu Kogyo Co's overall GF Score™ is 67/100 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 Kyokuto Kaihatsu Kogyo Co (TSE:7226), the current Gross Margin % is 18.49% 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 Kyokuto Kaihatsu Kogyo Co (TSE:7226) Overvalued in 2026?
Based on GuruFocus' analysis, Kyokuto Kaihatsu Kogyo Co stock appears to be undervalued.
The current stock price of 円2,275.00 is trading 27.3% below its estimated GF Value™ of 円3,130.38.
GuruFocus considers Kyokuto Kaihatsu Kogyo Co to be Modestly Undervalued.
Key valuation signals for TSE:7226:
Gross Margin %: 18.49% (near median its 10-year median of 18.80)
GF Value™: 円3,130.38 vs. price of 円2,275.00 (27.3% below fair value)
Industry Position: 27.6% below the Farm & Heavy Construction Machinery median (#161 of 210)
No single metric tells the full story. See the TSE:7226 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kyokuto Kaihatsu Kogyo Co Ltd Is a Japan-based company which is various lines of business including specialty truck business, environmental equipment and systems and real estate rental business. It operates is business in three reportable segments namely Specialty truck business, Environmental equipment and systems business and Real estate rental business. Specialty truck business manufactures and distributes specialty trucks such as dump trucks, tailgate lifters, tank trucks, refuse trucks and trailers. Environmental equipment and systems business manufactures and distributes recycle facilities, including maintenance and consignment business. Real estate rental business manufactures multistory parking equipment and offers operating services and real estate rental services.
67GF Score
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