Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
H2O RetailingTSE:8242 -0.23%69 Gross Margin % is 45.94% as of Mar. 2026, which is 29% above its 10-year median of 35.71. GuruFocus rates TSE:8242 with a GF Score™ of 69/100 and a GF Value™ of 円2,113.19 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 306 Retail - Defensive companies, H2O Retailing ranks better than 90.85% on this metric.
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
H2O Retailing had a gross margin of 45.94% 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.
H2O Retailing Gross Margin % Related Terms
H2O Retailing Gross Margin % Historical Data
* Premium members only.
The historical data trend for H2O Retailing'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 Grocery Stores subindustry, H2O Retailing'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.
H2O Retailing Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, H2O Retailing's Gross Margin % distribution charts can be found below:
* The bar in red indicates where H2O Retailing'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.
H2O Retailing (TSE:8242) has a Gross Margin % of 45.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on H2O Retailing and its competitors. This is 29% above median its historical median of 35.71. Over the past decade, H2O Retailing's Gross Margin % has ranged from 28.53 to 45.31. According to the industry distribution chart, H2O Retailing ranks #28 out of 306 companies in the Retail - Defensive industry, placing it in the top 9.2%.
Is H2O Retailing's Gross Margin % too high?
H2O Retailing's current Gross Margin % of 45.94% is 29% above median its 10-year median of 35.71. Over the past 10 years, this metric has ranged from a low of 28.53 to a high of 45.31. The Retail - Defensive industry median Gross Margin % is 24.06. H2O Retailing's value of 45.94% is 91% above this industry median. Based on the distribution chart, H2O Retailing ranks #28 out of 306 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, H2O Retailing has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does H2O Retailing's Gross Margin % compare to KR?
According to the Retail - Defensive industry distribution chart, H2O Retailing ranks #28 out of 306 companies for Gross Margin %. This places H2O Retailing in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.06. H2O Retailing's value of 45.94% is 91% above this benchmark. Historically, H2O Retailing's own Gross Margin % has ranged from 28.53 to 45.31 over the past decade. While the company's 10-year median is 35.71 vs. the industry median of 24.06, H2O Retailing 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.06, based on 306 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. H2O Retailing's current Gross Margin % of 45.94% is 91% 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 H2O Retailing and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O Retailing's current Gross Margin % is 45.94%, which is 29% above median its own 10-year median of 35.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H2O Retailing stock overvalued right now?
Based on GuruFocus' analysis, H2O Retailing (TSE:8242) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,113.19, compared to a current price of 円2,838.50 — trading 34.3% above its estimated fair value. The current Gross Margin % is 45.94%, which is 29% above median its 10-year median of 35.71 and 91% above the Retail - Defensive industry median of 24.06. H2O Retailing's overall GF Score™ is 69/100 with 5 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 H2O Retailing (TSE:8242), the current Gross Margin % is 45.94% 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 H2O Retailing (TSE:8242) Overvalued in 2026?
Based on GuruFocus' analysis, H2O Retailing stock appears to be overvalued.
The current stock price of 円2,838.50 is trading 34.3% above its estimated GF Value™ of 円2,113.19.
GuruFocus considers H2O Retailing to be Significantly Overvalued.
Key valuation signals for TSE:8242:
Gross Margin %: 45.94% (29% above median its 10-year median of 35.71)
GF Value™: 円2,113.19 vs. price of 円2,838.50 (34.3% above fair value)
Industry Position: 91% above the Retail - Defensive median (#28 of 306)
No single metric tells the full story. See the TSE:8242 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H2O Retailing Corp is a Japan-based retailer that provides a broad range of merchandise to meet consumers' needs, from daily needs to special products. The company's core business is the department store business, which includes both the Hankyu and Hanshin department store chains. Superstore business is the company's another major business arm, including the Izumiya and Hankyu Oasis store chains. H2O Retailing also runs a specialty store business, engaged in providing cosmetics, ladies' footwear, and other products and services. In addition to retail businesses, the company operates other businesses as well, such as hotels and restaurants.
69GF Score
Get the complete analysis for TSE:8242
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:8242 has been successfully added to your 
