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Denkyo Group Holdings Co (TSE:8144) 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
Denkyo Group Holdings Co had a gross margin of 20.65% 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.
Denkyo Group Holdings Co Gross Margin % Related Terms
Denkyo Group Holdings Co Gross Margin % Historical Data
* 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 Consumer Electronics subindustry, Denkyo Group Holdings 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.
Denkyo Group Holdings Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Denkyo Group Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Denkyo Group Holdings 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.
Denkyo Group Holdings Co (TSE:8144) has a Gross Margin % of 20.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Denkyo Group Holdings Co and its competitors. This is 22% above median its historical median of 16.87. Over the past decade, Denkyo Group Holdings Co's Gross Margin % has ranged from 16.35 to 20.36. According to the industry distribution chart, Denkyo Group Holdings Co ranks #1466 out of 2455 companies in the Hardware industry, placing it in the top 59.7%.
Is Denkyo Group Holdings Co's Gross Margin % too high?
Denkyo Group Holdings Co's current Gross Margin % of 20.65% is 22% above median its 10-year median of 16.87. Over the past 10 years, this metric has ranged from a low of 16.35 to a high of 20.36. The Hardware industry median Gross Margin % is 24.52. Denkyo Group Holdings Co's value of 20.65% is 15.8% below this industry median. Based on the distribution chart, Denkyo Group Holdings Co ranks #1466 out of 2455 companies in the Hardware industry, which is below the industry midpoint. Overall, Denkyo Group Holdings Co has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Denkyo Group Holdings Co's Gross Margin % compare to AAPL?
According to the Hardware industry distribution chart, Denkyo Group Holdings Co ranks #1466 out of 2455 companies for Gross Margin %. This places Denkyo Group Holdings Co in the lower half of its industry. The industry median Gross Margin % is 24.52. Denkyo Group Holdings Co's value of 20.65% is 15.8% below this benchmark. Historically, Denkyo Group Holdings Co's own Gross Margin % has ranged from 16.35 to 20.36 over the past decade. While the company's 10-year median is 16.87 vs. the industry median of 24.52, Denkyo Group Holdings 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,455 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. Denkyo Group Holdings Co's current Gross Margin % of 20.65% is 15.8% 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 Denkyo Group Holdings Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denkyo Group Holdings Co's current Gross Margin % is 20.65%, which is 22% above median its own 10-year median of 16.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denkyo Group Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Denkyo Group Holdings Co (TSE:8144) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,161.41, compared to a current price of 円1,287.00 — trading 10.8% above its estimated fair value. The current Gross Margin % is 20.65%, which is 22% above median its 10-year median of 16.87 and 15.8% below the Hardware industry median of 24.52. Denkyo Group Holdings Co's overall GF Score™ is 67/100 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 Denkyo Group Holdings Co (TSE:8144), the current Gross Margin % is 20.65% 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 Denkyo Group Holdings Co (TSE:8144) Overvalued in 2026?
Based on GuruFocus' analysis, Denkyo Group Holdings Co stock appears to be overvalued.
The current stock price of 円1,287.00 is trading 10.8% above its estimated GF Value™ of 円1,161.41.
GuruFocus considers Denkyo Group Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:8144:
Gross Margin %: 20.65% (22% above median its 10-year median of 16.87)
GF Value™: 円1,161.41 vs. price of 円1,287.00 (10.8% above fair value)
Industry Position: 15.8% below the Hardware median (#1466 of 2455)
No single metric tells the full story. See the TSE:8144 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denkyo Group Holdings Co Ltd is a Japan-based company engages in the wholesale business such as household electric appliances, acoustic communication equipment, air conditioning and heating equipment, health beauty appliances, and incidentally related business. Other businesses include electronic components, repair of home appliances, product storage, delivery, design and construction of light electrical instruments.
67GF Score
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