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Microwave Chemical CoTSE:9227 -0.36%46 Gross Margin % is 49.14% as of Mar. 2026, which is 21% below its 10-year median of 61.88. GuruFocus rates TSE:9227 with a GF Score™ of 46/100 and a GF Value™ of 円393.38 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,566 Chemicals companies, Microwave Chemical Co ranks better than 64.75% on this metric.
Microwave Chemical Co (TSE:9227) 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
Microwave Chemical Co had a gross margin of 49.14% 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.
Microwave Chemical Co Gross Margin % Related Terms
Microwave Chemical Co Gross Margin % Historical Data
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The historical data trend for Microwave Chemical Co'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 Chemicals subindustry, Microwave Chemical 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.
Microwave Chemical Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Microwave Chemical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Microwave Chemical 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.
Microwave Chemical Co (TSE:9227) has a Gross Margin % of 49.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Microwave Chemical Co and its competitors. This is 21% below median its historical median of 61.88. Over the past decade, Microwave Chemical Co's Gross Margin % has ranged from 27.67 to 76.43. According to the industry distribution chart, Microwave Chemical Co ranks #552 out of 1566 companies in the Chemicals industry, placing it in the top 35.2%.
Is Microwave Chemical Co's Gross Margin % too high?
Microwave Chemical Co's current Gross Margin % of 49.14% is 21% below median its 10-year median of 61.88. Over the past 10 years, this metric has ranged from a low of 27.67 to a high of 76.43. The Chemicals industry median Gross Margin % is 24.06. Microwave Chemical Co's value of 49.14% is 104.3% above this industry median. Based on the distribution chart, Microwave Chemical Co ranks #552 out of 1566 companies in the Chemicals industry, which is above the industry midpoint. Overall, Microwave Chemical Co has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microwave Chemical Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Microwave Chemical Co ranks #552 out of 1566 companies for Gross Margin %. This puts Microwave Chemical Co in the upper half of its industry. The industry median Gross Margin % is 24.06. Microwave Chemical Co's value of 49.14% is 104.3% above this benchmark. Historically, Microwave Chemical Co's own Gross Margin % has ranged from 27.67 to 76.43 over the past decade. While the company's 10-year median is 61.88 vs. the industry median of 24.06, Microwave Chemical Co 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 24.06, based on 1,566 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. Microwave Chemical Co's current Gross Margin % of 49.14% is 104.3% 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 Microwave Chemical Co and its competitors. For the Chemicals 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. Microwave Chemical Co's current Gross Margin % is 49.14%, which is 21% below median its own 10-year median of 61.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microwave Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Microwave Chemical Co (TSE:9227) is currently considered Significantly Overvalued. The stock's GF Value™ is 円393.38, compared to a current price of 円841.00 — trading 113.8% above its estimated fair value. The current Gross Margin % is 49.14%, which is 21% below median its 10-year median of 61.88 and 104.3% above the Chemicals industry median of 24.06. Microwave Chemical Co's overall GF Score™ is 46/100 with 8 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 Microwave Chemical Co (TSE:9227), the current Gross Margin % is 49.14% 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 Microwave Chemical Co (TSE:9227) Overvalued in 2026?
Based on GuruFocus' analysis, Microwave Chemical Co stock appears to be overvalued.
The current stock price of 円841.00 is trading 113.8% above its estimated GF Value™ of 円393.38.
GuruFocus considers Microwave Chemical Co to be Significantly Overvalued.
Key valuation signals for TSE:9227:
Gross Margin %: 49.14% (21% below median its 10-year median of 61.88)
GF Value™: 円393.38 vs. price of 円841.00 (113.8% above fair value)
Industry Position: 104.3% above the Chemicals median (#552 of 1566)
No single metric tells the full story. See the TSE:9227 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microwave Chemical Co Ltd is engaged in providing solutions from research and development to engineering, utilizing a microwave chemistry technology platform.
46GF Score
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