Japan ExcellentTSE:8987 -1.61%68 Gross Margin % is 49.89% as of Dec. 2025, which is 10% above its 10-year median of 45.49. GuruFocus rates TSE:8987 with a GF Score™ of 68/100 and a GF Value™ of 円128,671.50 (Fairly Valued). The stock has 9 warning signs investors should review. Among 680 REITs companies, Japan Excellent ranks worse than 84.41% on this metric.
Japan Excellent Inc gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Japan Excellent's Gross Margin % or its related term are showing as below:
TSE:8987'
s Gross Margin % Range Over the Past 10 Years
Min: 42.31 Med: 45.49 Max: 52.93
Current: 50.67
During the past 13 years, the highestGross Margin % of Japan Excellent was 52.93%. The lowest was 42.31%. And the median was 45.49%.
TSE:8987's Gross Margin % is ranked worse than 84.41% of 680
companies
in the REITs industry
Industry Median: 69.61
vs TSE:8987: 50.67
Japan Excellent had a gross margin of 49.89% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Japan Excellent was -1.80% per year.
Japan Excellent (TSE:8987) 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
Japan Excellent had a gross margin of 49.89% for the quarter that ended in Dec. 2025 => 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.
Japan Excellent Gross Margin % Related Terms
Japan Excellent Gross Margin % Historical Data
* Premium members only.
The historical data trend for Japan Excellent'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:8987 vs BXP, ARE, VNO: Gross Margin % Comparison
For the REIT - Office subindustry, Japan Excellent'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.
Japan Excellent Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Excellent's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Excellent'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.
Japan Excellent (TSE:8987) has a Gross Margin % of 49.89% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Excellent and its competitors. This is 10% above median its historical median of 45.49. Over the past decade, Japan Excellent's Gross Margin % has ranged from 42.31 to 52.93. According to the industry distribution chart, Japan Excellent ranks #574 out of 680 companies in the REITs industry, placing it in the top 84.4%.
Is Japan Excellent's Gross Margin % too high?
Japan Excellent's current Gross Margin % of 49.89% is 10% above median its 10-year median of 45.49. Over the past 10 years, this metric has ranged from a low of 42.31 to a high of 52.93. The REITs industry median Gross Margin % is 69.61. Japan Excellent's value of 49.89% is 28.3% below this industry median. Based on the distribution chart, Japan Excellent ranks #574 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Japan Excellent has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Excellent's Gross Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Japan Excellent ranks #574 out of 680 companies for Gross Margin %. This places Japan Excellent in the lower half of its industry. The industry median Gross Margin % is 69.61. Japan Excellent's value of 49.89% is 28.3% below this benchmark. Historically, Japan Excellent's own Gross Margin % has ranged from 42.31 to 52.93 over the past decade. While the company's 10-year median is 45.49 vs. the industry median of 69.61, Japan Excellent 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 REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 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. Japan Excellent's current Gross Margin % of 49.89% is 28.3% 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 Japan Excellent and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Excellent's current Gross Margin % is 49.89%, which is 10% above median its own 10-year median of 45.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Excellent stock overvalued right now?
Based on GuruFocus' analysis, Japan Excellent (TSE:8987) is currently considered Fairly Valued. The stock's GF Value™ is 円128,671.50, compared to a current price of 円134,800.00 — trading 4.8% above its estimated fair value. The current Gross Margin % is 49.89%, which is 10% above median its 10-year median of 45.49 and 28.3% below the REITs industry median of 69.61. Japan Excellent's overall GF Score™ is 68/100 with 9 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 Japan Excellent (TSE:8987), the current Gross Margin % is 49.89% as of Dec. 2025. 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 Japan Excellent (TSE:8987) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Excellent stock appears to be overvalued.
The current stock price of 円134,800.00 is trading 4.8% above its estimated GF Value™ of 円128,671.50.
GuruFocus considers Japan Excellent to be Fairly Valued.
Key valuation signals for TSE:8987:
Gross Margin %: 49.89% (10% above median its 10-year median of 45.49)
GF Value™: 円128,671.50 vs. price of 円134,800.00 (4.8% above fair value)
Industry Position: 28.3% below the REITs median (#574 of 680)
No single metric tells the full story. See the TSE:8987 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Excellent Inc is a real estate investment trust. It mainly invests in office buildings located in major metropolitan areas and pursues to create a portfolio that produces stable growth of income by acquiring properties. The company's portfolio of assets is managed by Japan Excellent Asset Management Co., Ltd.
68GF Score
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