Rhythm CoTSE:7769 -0.78%75 Gross Margin % is 22.30% as of Mar. 2026, which is 2% below its 10-year median of 22.84. GuruFocus rates TSE:7769 with a GF Score™ of 75/100 and a GF Value™ of 円3,879.16 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,109 Retail - Cyclical companies, Rhythm Co ranks worse than 73.49% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Rhythm Co's Gross Profit for the
six
months ended in Mar. 2026 was 円4,053 Mil. Rhythm Co's Revenue for the
six
months ended in Mar. 2026 was 円18,171 Mil. Therefore, Rhythm Co's Gross Margin % for the quarter that ended in Mar. 2026 was 22.30%.
Warning Sign:
Rhythm Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Rhythm Co's Gross Margin % or its related term are showing as below:
TSE:7769'
s Gross Margin % Range Over the Past 10 Years
Min: 20.19 Med: 22.84 Max: 25.05
Current: 22.99
During the past 13 years, the highestGross Margin % of Rhythm Co was 25.05%. The lowest was 20.19%. And the median was 22.84%.
TSE:7769's Gross Margin % is ranked worse than 73.49% of 1109
companies
in the Retail - Cyclical industry
Industry Median: 36.26
vs TSE:7769: 22.99
Rhythm Co had a gross margin of 22.30% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Rhythm Co was -1.30% per year.
Rhythm Co (TSE:7769) 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
Rhythm Co had a gross margin of 22.30% for the quarter that ended in Mar. 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.
Rhythm Co Gross Margin % Related Terms
Rhythm Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rhythm 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 Luxury Goods subindustry, Rhythm 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.
Rhythm Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Rhythm Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rhythm 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.
Rhythm Co (TSE:7769) has a Gross Margin % of 22.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rhythm Co and its competitors. This is near median its historical median of 22.84. Over the past decade, Rhythm Co's Gross Margin % has ranged from 20.19 to 25.05. According to the industry distribution chart, Rhythm Co ranks #815 out of 1109 companies in the Retail - Cyclical industry, placing it in the top 73.5%.
Is Rhythm Co's Gross Margin % too high?
Rhythm Co's current Gross Margin % of 22.30% is near median its 10-year median of 22.84. Over the past 10 years, this metric has ranged from a low of 20.19 to a high of 25.05. The Retail - Cyclical industry median Gross Margin % is 36.26. Rhythm Co's value of 22.30% is 38.5% below this industry median. Based on the distribution chart, Rhythm Co ranks #815 out of 1109 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Rhythm Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Co's Gross Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Rhythm Co ranks #815 out of 1109 companies for Gross Margin %. This places Rhythm Co in the lower half of its industry. The industry median Gross Margin % is 36.26. Rhythm Co's value of 22.30% is 38.5% below this benchmark. Historically, Rhythm Co's own Gross Margin % has ranged from 20.19 to 25.05 over the past decade. While the company's 10-year median is 22.84 vs. the industry median of 36.26, Rhythm 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.26, based on 1,109 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. Rhythm Co's current Gross Margin % of 22.30% is 38.5% 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 Rhythm Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Co's current Gross Margin % is 22.30%, which is near median its own 10-year median of 22.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Co stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Co (TSE:7769) is currently considered Fairly Valued. The stock's GF Value™ is 円3,879.16, compared to a current price of 円3,810.00 — trading 1.8% below its estimated fair value. The current Gross Margin % is 22.30%, which is near median its 10-year median of 22.84 and 38.5% below the Retail - Cyclical industry median of 36.26. Rhythm Co's overall GF Score™ is 75/100 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 Rhythm Co (TSE:7769), the current Gross Margin % is 22.30% 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 Rhythm Co (TSE:7769) Overvalued in 2026?
Based on GuruFocus' analysis, Rhythm Co stock appears to be undervalued.
The current stock price of 円3,810.00 is trading 1.8% below its estimated GF Value™ of 円3,879.16.
GuruFocus considers Rhythm Co to be Fairly Valued.
Key valuation signals for TSE:7769:
Gross Margin %: 22.30% (near median its 10-year median of 22.84)
GF Value™: 円3,879.16 vs. price of 円3,810.00 (1.8% below fair value)
Industry Position: 38.5% below the Retail - Cyclical median (#815 of 1109)
No single metric tells the full story. See the TSE:7769 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhythm Co Ltd is a watch manufacturer. The company is mainly engaged in the manufacturing and sale of clocks, jewelry, watches, electronic parts and equipment. It operates its business in two divisions including Precision Parts and Household Goods Business. The Precision Parts Business manufactures and sells precision parts used in automobiles, industrial equipment, optical equipment, office/communication equipment, solar power generation, home appliances, difficult precision molds, electronic equipment, information, automotive-related equipment and other decorative products. The Household Goods Business manufactures and sells clocks such as wall clocks, table clocks, alarm clocks, digital clocks and equipment clocks, clock movements, disaster prevention administrative radios and others.
75GF Score
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