Kourakuen (TSE:7554) Gross Margin %: 68.87% (As of Mar. 2026) — Near Median

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TSE:7554 Kourakuen Corp TSE:7554
54 GF Score
Price 円1,125.00
GF Value 円1,493.21
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Kourakuen Gross Margin %?

Kourakuen TSE:7554 +0.45% 54 Gross Margin % is 68.87% as of Mar. 2026, which is 4% below its 10-year median of 71.63. GuruFocus rates TSE:7554 with a GF Score™ of 54/100 and a GF Value™ of 円1,493.21 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 353 Restaurants companies, Kourakuen ranks better than 87.82% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Kourakuen's Gross Profit for the six months ended in Mar. 2026 was 円10,301 Mil. Kourakuen's Revenue for the six months ended in Mar. 2026 was 円14,957 Mil. Therefore, Kourakuen's Gross Margin % for the quarter that ended in Mar. 2026 was 68.87%.

Warning Sign:

Kourakuen Corp gross margin has been in long-term decline. The average rate of decline per year is -6.6%.


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

TSE:7554' s Gross Margin % Range Over the Past 10 Years
Min: 16.33   Med: 71.63   Max: 72.99
Current: 69.29


During the past 13 years, the highest Gross Margin % of Kourakuen was 72.99%. The lowest was 16.33%. And the median was 71.63%.

TSE:7554's Gross Margin % is ranked better than
87.82% of 353 companies
in the Restaurants industry
Industry Median: 45.66 vs TSE:7554: 69.29

Kourakuen had a gross margin of 68.87% for the quarter that ended in Mar. 2026 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kourakuen was -6.60% per year.


Kourakuen  (TSE:7554) 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

Kourakuen had a gross margin of 68.87% for the quarter that ended in Mar. 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.


Kourakuen Gross Margin % Related Terms


Kourakuen Gross Margin % Historical Data

* Premium members only.

The historical data trend for Kourakuen'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.

Kourakuen Gross Margin % Chart

Kourakuen 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 71.83 72.30 16.33 55.81 69.29

Kourakuen 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 187.33 70.60 16.29 69.72 68.87

TSE:7554 vs MCD, SBUX, YUM: Gross Margin % Comparison

For the Restaurants subindustry, Kourakuen'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.


Kourakuen Gross Margin % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Kourakuen's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kourakuen's Gross Margin % falls into.


TSE:7554
54GF Score
Kourakuen Corp TSE:7554
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kourakuen Gross Margin % Calculation

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

Kourakuen'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 )
=20374.8 / 29404.657
=(Revenue - Cost of Goods Sold) / Revenue
=(29404.657 - 9029.898) / 29404.657
=69.29 %

Kourakuen'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 )
=10301.4 / 14957.261
=(Revenue - Cost of Goods Sold) / Revenue
=(14957.261 - 4655.864) / 14957.261
=68.87 %

* 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 68.87% mean?
Kourakuen (TSE:7554) has a Gross Margin % of 68.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kourakuen and its competitors. This is near median its historical median of 71.63. Over the past decade, Kourakuen's Gross Margin % has ranged from 16.33 to 72.99. According to the industry distribution chart, Kourakuen ranks #43 out of 353 companies in the Restaurants industry, placing it in the top 12.2%.
Is Kourakuen's Gross Margin % too high?
Kourakuen's current Gross Margin % of 68.87% is near median its 10-year median of 71.63. Over the past 10 years, this metric has ranged from a low of 16.33 to a high of 72.99. The Restaurants industry median Gross Margin % is 45.66. Kourakuen's value of 68.87% is 50.8% above this industry median. Based on the distribution chart, Kourakuen ranks #43 out of 353 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Kourakuen has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kourakuen's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Kourakuen ranks #43 out of 353 companies for Gross Margin %. This places Kourakuen in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 45.66. Kourakuen's value of 68.87% is 50.8% above this benchmark. Historically, Kourakuen's own Gross Margin % has ranged from 16.33 to 72.99 over the past decade. While the company's 10-year median is 71.63 vs. the industry median of 45.66, Kourakuen 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 Restaurants company?
The median Gross Margin % among Restaurants companies is 45.66, based on 353 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. Kourakuen's current Gross Margin % of 68.87% is 50.8% 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 Kourakuen and its competitors. For the Restaurants industry, the median Gross Margin % is 45.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kourakuen's current Gross Margin % is 68.87%, which is near median its own 10-year median of 71.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kourakuen stock overvalued right now?
Based on GuruFocus' analysis, Kourakuen (TSE:7554) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,493.21, compared to a current price of 円1,125.00 — trading 24.7% below its estimated fair value. The current Gross Margin % is 68.87%, which is near median its 10-year median of 71.63 and 50.8% above the Restaurants industry median of 45.66. Kourakuen's overall GF Score™ is 54/100 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 Kourakuen (TSE:7554), the current Gross Margin % is 68.87% 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 Kourakuen (TSE:7554) Overvalued in 2026?

Based on GuruFocus' analysis, Kourakuen stock appears to be undervalued. The current stock price of 円1,125.00 is trading 24.7% below its estimated GF Value™ of 円1,493.21. GuruFocus considers Kourakuen to be Modestly Undervalued.

Key valuation signals for TSE:7554:

  • Gross Margin %: 68.87% (near median its 10-year median of 71.63)
  • GF Value™: 円1,493.21 vs. price of 円1,125.00 (24.7% below fair value)
  • GF Score™: 54/100 with 2 warning signs
  • Industry Position: 50.8% above the Restaurants median (#43 of 353)

No single metric tells the full story. See the TSE:7554 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kourakuen Business Description

Address 2-1 Kitakawada, Kamiyuki-aiji, Fukushima Prefecture, Koriyama, JPN, 963-0724
Kourakuen Corp operates a chain of food restaurants, such as ramen noodles, Gyoza, Fried rice, and Japanese food restaurants It manages companies conducting chain expansions of domestic and overseas branches.
54GF Score

Get the complete analysis for TSE:7554

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

円1,125.00
Price
円1,493.21
GF Value