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Hiroshima Electric Railway Co (TSE:9033) 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
Hiroshima Electric Railway Co had a gross margin of 17.04% for the quarter that ended in Mar. 2026 => No sustainable 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.
Hiroshima Electric Railway Co Gross Margin % Related Terms
Hiroshima Electric Railway 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.
Hiroshima Electric Railway Co Gross Margin % Chart
TSE:9033 vs UNP, CSX, NSC: Gross Margin % Comparison
For the Railroads subindustry, Hiroshima Electric Railway 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.
Hiroshima Electric Railway Co Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Hiroshima Electric Railway Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hiroshima Electric Railway 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.
Hiroshima Electric Railway Co (TSE:9033) has a Gross Margin % of 17.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hiroshima Electric Railway Co and its competitors. This is near median its historical median of 16.72. Over the past decade, Hiroshima Electric Railway Co's Gross Margin % has ranged from 1.50 to 20.62. According to the industry distribution chart, Hiroshima Electric Railway Co ranks #576 out of 981 companies in the Transportation industry, placing it in the top 58.7%.
Is Hiroshima Electric Railway Co's Gross Margin % too high?
Hiroshima Electric Railway Co's current Gross Margin % of 17.04% is near median its 10-year median of 16.72. Over the past 10 years, this metric has ranged from a low of 1.50 to a high of 20.62. The Transportation industry median Gross Margin % is 20.42. Hiroshima Electric Railway Co's value of 17.04% is 16.6% below this industry median. Based on the distribution chart, Hiroshima Electric Railway Co ranks #576 out of 981 companies in the Transportation industry, which is below the industry midpoint. Overall, Hiroshima Electric Railway Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hiroshima Electric Railway Co's Gross Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Hiroshima Electric Railway Co ranks #576 out of 981 companies for Gross Margin %. This places Hiroshima Electric Railway Co in the lower half of its industry. The industry median Gross Margin % is 20.42. Hiroshima Electric Railway Co's value of 17.04% is 16.6% below this benchmark. Historically, Hiroshima Electric Railway Co's own Gross Margin % has ranged from 1.50 to 20.62 over the past decade. While the company's 10-year median is 16.72 vs. the industry median of 20.42, Hiroshima Electric Railway 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 981 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. Hiroshima Electric Railway Co's current Gross Margin % of 17.04% is 16.6% 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 Hiroshima Electric Railway Co and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hiroshima Electric Railway Co's current Gross Margin % is 17.04%, which is near median its own 10-year median of 16.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hiroshima Electric Railway Co stock overvalued right now?
Based on GuruFocus' analysis, Hiroshima Electric Railway Co (TSE:9033) is currently considered Modestly Undervalued. The stock's GF Value™ is 円780.07, compared to a current price of 円624.00 — trading 20% below its estimated fair value. The current Gross Margin % is 17.04%, which is near median its 10-year median of 16.72 and 16.6% below the Transportation industry median of 20.42. Hiroshima Electric Railway Co's overall GF Score™ is 63/100 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 Hiroshima Electric Railway Co (TSE:9033), the current Gross Margin % is 17.04% 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 Hiroshima Electric Railway Co (TSE:9033) Overvalued in 2026?
Based on GuruFocus' analysis, Hiroshima Electric Railway Co stock appears to be undervalued.
The current stock price of 円624.00 is trading 20% below its estimated GF Value™ of 円780.07.
GuruFocus considers Hiroshima Electric Railway Co to be Modestly Undervalued.
Key valuation signals for TSE:9033:
Gross Margin %: 17.04% (near median its 10-year median of 16.72)
GF Value™: 円780.07 vs. price of 円624.00 (20% below fair value)
Industry Position: 16.6% below the Transportation median (#576 of 981)
No single metric tells the full story. See the TSE:9033 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hiroshima Electric Railway Co Business Description
Hiroshima Electric Railway Co Ltd operates in various sectors such as Transportation which includes railway and railroad business, Bus business, ropeway, air transport agency, and hire business; Distribution business includes merchandise sales; Real estate business includes rental and sales business; Construction includes civil engineering, telecommunication construction; and Leisure business includes catering, bowling, golf and travel business.
63GF Score
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