LecTSE:7874 +1.29%71 Gross Margin % is 27.01% as of Mar. 2026, which is 18% below its 10-year median of 33.07. GuruFocus rates TSE:7874 with a GF Score™ of 71/100 and a GF Value™ of 円1,291.14 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,899 Consumer Packaged Goods companies, Lec ranks better than 59.03% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Lec's Gross Profit for the
three
months ended in Mar. 2026 was 円4,151 Mil. Lec's Revenue for the
three
months ended in Mar. 2026 was 円15,369 Mil. Therefore, Lec's Gross Margin % for the quarter that ended in Mar. 2026 was 27.01%.
Warning Sign:
Lec Inc gross margin has been in long-term decline. The average rate of decline per year is -4.4%.
The historical rank and industry rank for Lec's Gross Margin % or its related term are showing as below:
TSE:7874'
s Gross Margin % Range Over the Past 10 Years
Min: 26.28 Med: 33.07 Max: 36.68
Current: 30.29
During the past 13 years, the highestGross Margin % of Lec was 36.68%. The lowest was 26.28%. And the median was 33.07%.
TSE:7874's Gross Margin % is ranked better than 59.03% of 1899
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs TSE:7874: 30.29
Lec had a gross margin of 27.01% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lec was -4.40% per year.
Lec (TSE:7874) 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
Lec had a gross margin of 27.01% 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.
Lec Gross Margin % Related Terms
Lec Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lec'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:7874 vs PG, CL, KVUE: Gross Margin % Comparison
For the Household & Personal Products subindustry, Lec'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.
Lec Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lec's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lec'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.
Lec (TSE:7874) has a Gross Margin % of 27.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lec and its competitors. This is 18% below median its historical median of 33.07. Over the past decade, Lec's Gross Margin % has ranged from 26.28 to 36.68. According to the industry distribution chart, Lec ranks #778 out of 1899 companies in the Consumer Packaged Goods industry, placing it in the top 41%.
Is Lec's Gross Margin % too high?
Lec's current Gross Margin % of 27.01% is 18% below median its 10-year median of 33.07. Over the past 10 years, this metric has ranged from a low of 26.28 to a high of 36.68. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Lec's value of 27.01% is 2.4% above this industry median. Based on the distribution chart, Lec ranks #778 out of 1899 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Lec has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lec's Gross Margin % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Lec ranks #778 out of 1899 companies for Gross Margin %. This puts Lec in the upper half of its industry. The industry median Gross Margin % is 26.37. Lec's value of 27.01% is 2.4% above this benchmark. Historically, Lec's own Gross Margin % has ranged from 26.28 to 36.68 over the past decade. While the company's 10-year median is 33.07 vs. the industry median of 26.37, Lec 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,899 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. Lec's current Gross Margin % of 27.01% is 2.4% 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 Lec and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lec's current Gross Margin % is 27.01%, which is 18% below median its own 10-year median of 33.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lec stock overvalued right now?
Based on GuruFocus' analysis, Lec (TSE:7874) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,291.14, compared to a current price of 円944.00 — trading 26.9% below its estimated fair value. The current Gross Margin % is 27.01%, which is 18% below median its 10-year median of 33.07 and 2.4% above the Consumer Packaged Goods industry median of 26.37. Lec's overall GF Score™ is 71/100 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 Lec (TSE:7874), the current Gross Margin % is 27.01% 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 Lec (TSE:7874) Overvalued in 2026?
Based on GuruFocus' analysis, Lec stock appears to be undervalued.
The current stock price of 円944.00 is trading 26.9% below its estimated GF Value™ of 円1,291.14.
GuruFocus considers Lec to be Modestly Undervalued.
Key valuation signals for TSE:7874:
Gross Margin %: 27.01% (18% below median its 10-year median of 33.07)
GF Value™: 円1,291.14 vs. price of 円944.00 (26.9% below fair value)
Industry Position: 2.4% above the Consumer Packaged Goods median (#778 of 1899)
No single metric tells the full story. See the TSE:7874 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lec Inc engages in the manufacture, sale, and import-export of household utensils, gift articles, and corporate sales palpate articles. It offers its products in various groups namely hook group, kitchen, bath supplies, toilet supplies, cleaning supplies and laundry article. Its products include sticker hooks, paper towel holders, electric toothbrush holders, cleaning tools, and extendable folding laundry clothes hangers.
71GF Score
Get the complete analysis for TSE:7874
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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