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Two stone & SonsTSE:7352 69 Gross Margin % is 31.30% as of Feb. 2026, which is 3% above its 10-year median of 30.53. GuruFocus rates TSE:7352 with a GF Score™ of 69/100 and a GF Value™ of 円1,503.25 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,004 Business Services companies, Two stone & Sons ranks worse than 50.4% on this metric.
Two stone & Sons (TSE:7352) 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
Two stone & Sons had a gross margin of 31.30% for the quarter that ended in Feb. 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.
Two stone & Sons Gross Margin % Related Terms
Two stone & Sons Gross Margin % Historical Data
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The historical data trend for Two stone & Sons'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:7352 vs CTAS, CPRT, GPN: Gross Margin % Comparison
For the Specialty Business Services subindustry, Two stone & Sons'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.
Two stone & Sons Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Two stone & Sons's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Two stone & Sons'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.
Two stone & Sons (TSE:7352) has a Gross Margin % of 31.30% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Two stone & Sons and its competitors. This is near median its historical median of 30.53. Over the past decade, Two stone & Sons' Gross Margin % has ranged from 26.99 to 34.06. According to the industry distribution chart, Two stone & Sons ranks #506 out of 1004 companies in the Business Services industry, placing it in the top 50.4%.
Is Two stone & Sons' Gross Margin % too high?
Two stone & Sons' current Gross Margin % of 31.30% is near median its 10-year median of 30.53. Over the past 10 years, this metric has ranged from a low of 26.99 to a high of 34.06. The Business Services industry median Gross Margin % is 34.46. Two stone & Sons' value of 31.30% is 9.2% below this industry median. Based on the distribution chart, Two stone & Sons ranks #506 out of 1004 companies in the Business Services industry, which is below the industry midpoint. Overall, Two stone & Sons has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Two stone & Sons' Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Two stone & Sons ranks #506 out of 1004 companies for Gross Margin %. This places Two stone & Sons in the lower half of its industry. The industry median Gross Margin % is 34.46. Two stone & Sons' value of 31.30% is 9.2% below this benchmark. Historically, Two stone & Sons' own Gross Margin % has ranged from 26.99 to 34.06 over the past decade. While the company's 10-year median is 30.53 vs. the industry median of 34.46, Two stone & Sons 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,004 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. Two stone & Sons's current Gross Margin % of 31.30% is 9.2% 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 Two stone & Sons and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two stone & Sons's current Gross Margin % is 31.30%, which is near median its own 10-year median of 30.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Two stone & Sons stock overvalued right now?
Based on GuruFocus' analysis, Two stone & Sons (TSE:7352) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,503.25, compared to a current price of 円370.00 — trading 75.4% below its estimated fair value. The current Gross Margin % is 31.30%, which is near median its 10-year median of 30.53 and 9.2% below the Business Services industry median of 34.46. Two stone & Sons' overall GF Score™ is 69/100 with 2 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 Two stone & Sons (TSE:7352), the current Gross Margin % is 31.30% 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 Two stone & Sons (TSE:7352) Overvalued in 2026?
Based on GuruFocus' analysis, Two stone & Sons stock appears to be undervalued.
The current stock price of 円370.00 is trading 75.4% below its estimated GF Value™ of 円1,503.25.
GuruFocus considers Two stone & Sons to be Significantly Undervalued.
Key valuation signals for TSE:7352:
Gross Margin %: 31.30% (near median its 10-year median of 30.53)
GF Value™: 円1,503.25 vs. price of 円370.00 (75.4% below fair value)
Industry Position: 9.2% below the Business Services median (#506 of 1004)
No single metric tells the full story. See the TSE:7352 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Two stone & Sons Inc is an engineering company providing engineering resources to companies, media businesses, and programming school businesses. The company develops services such as in-house media management and client solutions such as contract development.
69GF Score
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