Hatsuho Shouji CoTSE:7425 +1.14%79 Gross Margin % is 17.44% as of Dec. 2025, which is 2% above its 10-year median of 17.08. GuruFocus rates TSE:7425 with a GF Score™ of 79/100 and a GF Value™ of 円872.77 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 593 Steel companies, Hatsuho Shouji Co ranks better than 64.76% on this metric.
The historical rank and industry rank for Hatsuho Shouji Co's Gross Margin % or its related term are showing as below:
TSE:7425'
s Gross Margin % Range Over the Past 10 Years
Min: 16.14 Med: 17.08 Max: 18.33
Current: 17.59
During the past 13 years, the highestGross Margin % of Hatsuho Shouji Co was 18.33%. The lowest was 16.14%. And the median was 17.08%.
TSE:7425's Gross Margin % is ranked better than 64.76% of 593
companies
in the Steel industry
Industry Median: 12.6
vs TSE:7425: 17.59
Hatsuho Shouji Co had a gross margin of 17.44% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hatsuho Shouji Co was 1.70% per year.
Hatsuho Shouji Co (TSE:7425) 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
Hatsuho Shouji Co had a gross margin of 17.44% for the quarter that ended in Dec. 2025 => 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.
Hatsuho Shouji Co Gross Margin % Related Terms
Hatsuho Shouji Co Gross Margin % Historical Data
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The historical data trend for Hatsuho Shouji 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.
TSE:7425 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Hatsuho Shouji 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.
Hatsuho Shouji Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Hatsuho Shouji Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hatsuho Shouji 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.
Hatsuho Shouji Co (TSE:7425) has a Gross Margin % of 17.44% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hatsuho Shouji Co and its competitors. This is near median its historical median of 17.08. Over the past decade, Hatsuho Shouji Co's Gross Margin % has ranged from 16.14 to 18.33. According to the industry distribution chart, Hatsuho Shouji Co ranks #209 out of 593 companies in the Steel industry, placing it in the top 35.2%.
Is Hatsuho Shouji Co's Gross Margin % too high?
Hatsuho Shouji Co's current Gross Margin % of 17.44% is near median its 10-year median of 17.08. Over the past 10 years, this metric has ranged from a low of 16.14 to a high of 18.33. The Steel industry median Gross Margin % is 12.60. Hatsuho Shouji Co's value of 17.44% is 38.4% above this industry median. Based on the distribution chart, Hatsuho Shouji Co ranks #209 out of 593 companies in the Steel industry, which is above the industry midpoint. Overall, Hatsuho Shouji Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hatsuho Shouji Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Hatsuho Shouji Co ranks #209 out of 593 companies for Gross Margin %. This puts Hatsuho Shouji Co in the upper half of its industry. The industry median Gross Margin % is 12.60. Hatsuho Shouji Co's value of 17.44% is 38.4% above this benchmark. Historically, Hatsuho Shouji Co's own Gross Margin % has ranged from 16.14 to 18.33 over the past decade. While the company's 10-year median is 17.08 vs. the industry median of 12.60, Hatsuho Shouji 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Hatsuho Shouji Co's current Gross Margin % of 17.44% is 38.4% 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 Hatsuho Shouji Co and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hatsuho Shouji Co's current Gross Margin % is 17.44%, which is near median its own 10-year median of 17.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hatsuho Shouji Co stock overvalued right now?
Based on GuruFocus' analysis, Hatsuho Shouji Co (TSE:7425) is currently considered Significantly Overvalued. The stock's GF Value™ is 円872.77, compared to a current price of 円1,242.00 — trading 42.3% above its estimated fair value. The current Gross Margin % is 17.44%, which is near median its 10-year median of 17.08 and 38.4% above the Steel industry median of 12.60. Hatsuho Shouji Co's overall GF Score™ is 79/100 with 6 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 Hatsuho Shouji Co (TSE:7425), the current Gross Margin % is 17.44% as of Dec. 2025. 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 Hatsuho Shouji Co (TSE:7425) Overvalued in 2026?
Based on GuruFocus' analysis, Hatsuho Shouji Co stock appears to be overvalued.
The current stock price of 円1,242.00 is trading 42.3% above its estimated GF Value™ of 円872.77.
GuruFocus considers Hatsuho Shouji Co to be Significantly Overvalued.
Key valuation signals for TSE:7425:
Gross Margin %: 17.44% (near median its 10-year median of 17.08)
GF Value™: 円872.77 vs. price of 円1,242.00 (42.3% above fair value)
Industry Position: 38.4% above the Steel median (#209 of 593)
No single metric tells the full story. See the TSE:7425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hatsuho Shouji Co Ltd is a Japan-based company engages in the sale of secondary steel products and non-ferrous metals. Its products include light-weight steel frames, wire mesh for concrete, sheet rock, car ports, and other construction materials.
79GF Score
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