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Tokai Tokyo Financial Holdings (TSE:8616) 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
Tokai Tokyo Financial Holdings had a gross margin of 92.49% 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.
Tokai Tokyo Financial Holdings Gross Margin % Related Terms
Tokai Tokyo Financial Holdings 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.
Tokai Tokyo Financial Holdings Gross Margin % Chart
TSE:8616 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, Tokai Tokyo Financial Holdings'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.
Tokai Tokyo Financial Holdings Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Tokai Tokyo Financial Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tokai Tokyo Financial Holdings'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.
Tokai Tokyo Financial Holdings (TSE:8616) has a Gross Margin % of 92.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tokai Tokyo Financial Holdings and its competitors. This is near median its historical median of 96.65. Over the past decade, Tokai Tokyo Financial Holdings' Gross Margin % has ranged from 94.07 to 97.43. According to the industry distribution chart, Tokai Tokyo Financial Holdings ranks #52 out of 618 companies in the Capital Markets industry, placing it in the top 8.4%.
Is Tokai Tokyo Financial Holdings' Gross Margin % too high?
Tokai Tokyo Financial Holdings' current Gross Margin % of 92.49% is near median its 10-year median of 96.65. Over the past 10 years, this metric has ranged from a low of 94.07 to a high of 97.43. The Capital Markets industry median Gross Margin % is 49.87. Tokai Tokyo Financial Holdings' value of 92.49% is 85.5% above this industry median. Based on the distribution chart, Tokai Tokyo Financial Holdings ranks #52 out of 618 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Tokai Tokyo Financial Holdings has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Tokyo Financial Holdings' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Tokai Tokyo Financial Holdings ranks #52 out of 618 companies for Gross Margin %. This places Tokai Tokyo Financial Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 49.87. Tokai Tokyo Financial Holdings' value of 92.49% is 85.5% above this benchmark. Historically, Tokai Tokyo Financial Holdings' own Gross Margin % has ranged from 94.07 to 97.43 over the past decade. While the company's 10-year median is 96.65 vs. the industry median of 49.87, Tokai Tokyo Financial Holdings 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.87, based on 618 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. Tokai Tokyo Financial Holdings's current Gross Margin % of 92.49% is 85.5% 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 Tokai Tokyo Financial Holdings and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Tokyo Financial Holdings's current Gross Margin % is 92.49%, which is near median its own 10-year median of 96.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Tokyo Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tokai Tokyo Financial Holdings (TSE:8616) is currently considered Modestly Overvalued. The stock's GF Value™ is 円627.65, compared to a current price of 円774.00 — trading 23.3% above its estimated fair value. The current Gross Margin % is 92.49%, which is near median its 10-year median of 96.65 and 85.5% above the Capital Markets industry median of 49.87. Tokai Tokyo Financial Holdings' overall GF Score™ is 72/100 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 Tokai Tokyo Financial Holdings (TSE:8616), the current Gross Margin % is 92.49% 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 Tokai Tokyo Financial Holdings (TSE:8616) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Tokyo Financial Holdings stock appears to be overvalued.
The current stock price of 円774.00 is trading 23.3% above its estimated GF Value™ of 円627.65.
GuruFocus considers Tokai Tokyo Financial Holdings to be Modestly Overvalued.
Key valuation signals for TSE:8616:
Gross Margin %: 92.49% (near median its 10-year median of 96.65)
GF Value™: 円627.65 vs. price of 円774.00 (23.3% above fair value)
Industry Position: 85.5% above the Capital Markets median (#52 of 618)
No single metric tells the full story. See the TSE:8616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Tokyo Financial Holdings Business Description
Tokai Tokyo Financial Holdings Inc. is the holding company of the Tokai Tokyo Financial Group. It operates and manages the group's companies. Tokai Tokyo Financial Group consists primarily of companies in Japan, but a few are in overseas markets. Tokyo Securities is the operating nucleus of the group and manages financial instruments businesses, fund management, back-office services, and research. For the overall group, operations are divided into trading activities and commissions. Tokai's commissions are gained through brokerage services and underwriting and distribution.
72GF Score
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