Otomo Logistics Service Co (TSE:9149) 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
Otomo Logistics Service Co had a gross margin of 11.91% for the quarter that ended in Apr. 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.
Otomo Logistics Service Co Gross Margin % Related Terms
Otomo Logistics Service 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 Integrated Freight & Logistics subindustry, Otomo Logistics Service 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.
Otomo Logistics Service Co Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Otomo Logistics Service Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Otomo Logistics Service 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.
Otomo Logistics Service Co (TSE:9149) has a Gross Margin % of 11.91% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Otomo Logistics Service Co and its competitors. This is 44% above median its historical median of 8.28. Over the past decade, Otomo Logistics Service Co's Gross Margin % has ranged from 3.63 to 13.29.
Is Otomo Logistics Service Co's Gross Margin % too high?
Otomo Logistics Service Co's current Gross Margin % of 11.91% is 44% above median its 10-year median of 8.28. Over the past 10 years, this metric has ranged from a low of 3.63 to a high of 13.29. The Transportation industry median Gross Margin % is 20.38. Otomo Logistics Service Co's value of 11.91% is 41.6% below this industry median. Overall, Otomo Logistics Service Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otomo Logistics Service Co's Gross Margin % compare to ?
Otomo Logistics Service Co's Gross Margin % of 11.91% can be compared against companies in the Transportation industry. The industry median Gross Margin % is 20.38. Otomo Logistics Service Co's value of 11.91% is 41.6% below this benchmark. Historically, Otomo Logistics Service Co's own Gross Margin % has ranged from 3.63 to 13.29 over the past decade. While the company's 10-year median is 8.28 vs. the industry median of 20.38, Otomo Logistics Service 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 20.38, based on 979 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. Otomo Logistics Service Co's current Gross Margin % of 11.91% is 41.6% 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 Otomo Logistics Service Co and its competitors. For the Transportation industry, the median Gross Margin % is 20.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otomo Logistics Service Co's current Gross Margin % is 11.91%, which is 44% above median its own 10-year median of 8.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otomo Logistics Service Co stock overvalued right now?
Otomo Logistics Service Co (TSE:9149) has a current Gross Margin % of 11.91%. The current Gross Margin % is 11.91%, which is 44% above median its 10-year median of 8.28 and 41.6% below the Transportation industry median of 20.38. Otomo Logistics Service Co's overall GF Score™ is 16/100 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 Otomo Logistics Service Co (TSE:9149), the current Gross Margin % is 11.91% as of Apr. 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.
Otomo Logistics Service Co Ltd is a provider of logistics services in Japan. The company's business services include warehouse service, Logistics consulting, and transportation service.
16GF Score
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