Zaoh CoTSE:9986 +0.53%78 Gross Margin % is 46.43% as of Mar. 2026, which is 5% below its 10-year median of 48.75. GuruFocus rates TSE:9986 with a GF Score™ of 78/100 and a GF Value™ of 円2,390.72 (Fairly Valued). The stock has 4 warning signs investors should review. Among 153 Industrial Distribution companies, Zaoh Co ranks better than 95.42% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Zaoh Co's Gross Profit for the
three
months ended in Mar. 2026 was 円1,140 Mil. Zaoh Co's Revenue for the
three
months ended in Mar. 2026 was 円2,456 Mil. Therefore, Zaoh Co's Gross Margin % for the quarter that ended in Mar. 2026 was 46.43%.
The historical rank and industry rank for Zaoh Co's Gross Margin % or its related term are showing as below:
TSE:9986'
s Gross Margin % Range Over the Past 10 Years
Min: 42.32 Med: 48.75 Max: 52.26
Current: 47.59
During the past 13 years, the highestGross Margin % of Zaoh Co was 52.26%. The lowest was 42.32%. And the median was 48.75%.
TSE:9986's Gross Margin % is ranked better than 95.42% of 153
companies
in the Industrial Distribution industry
Industry Median: 24.34
vs TSE:9986: 47.59
Zaoh Co had a gross margin of 46.43% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zaoh Co was -0.40% per year.
Zaoh Co (TSE:9986) 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
Zaoh Co had a gross margin of 46.43% 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.
Zaoh Co Gross Margin % Related Terms
Zaoh Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zaoh 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.
TSE:9986 vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Zaoh 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.
Zaoh Co Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Zaoh Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zaoh 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.
Zaoh Co (TSE:9986) has a Gross Margin % of 46.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zaoh Co and its competitors. This is near median its historical median of 48.75. Over the past decade, Zaoh Co's Gross Margin % has ranged from 42.32 to 52.26. According to the industry distribution chart, Zaoh Co ranks #7 out of 153 companies in the Industrial Distribution industry, placing it in the top 4.6%.
Is Zaoh Co's Gross Margin % too high?
Zaoh Co's current Gross Margin % of 46.43% is near median its 10-year median of 48.75. Over the past 10 years, this metric has ranged from a low of 42.32 to a high of 52.26. The Industrial Distribution industry median Gross Margin % is 24.34. Zaoh Co's value of 46.43% is 90.8% above this industry median. Based on the distribution chart, Zaoh Co ranks #7 out of 153 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Zaoh Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zaoh Co's Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Zaoh Co ranks #7 out of 153 companies for Gross Margin %. This places Zaoh Co in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.34. Zaoh Co's value of 46.43% is 90.8% above this benchmark. Historically, Zaoh Co's own Gross Margin % has ranged from 42.32 to 52.26 over the past decade. While the company's 10-year median is 48.75 vs. the industry median of 24.34, Zaoh 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 an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.34, based on 153 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. Zaoh Co's current Gross Margin % of 46.43% is 90.8% 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 Zaoh Co and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zaoh Co's current Gross Margin % is 46.43%, which is near median its own 10-year median of 48.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zaoh Co stock overvalued right now?
Based on GuruFocus' analysis, Zaoh Co (TSE:9986) is currently considered Fairly Valued. The stock's GF Value™ is 円2,390.72, compared to a current price of 円2,448.00 — trading 2.4% above its estimated fair value. The current Gross Margin % is 46.43%, which is near median its 10-year median of 48.75 and 90.8% above the Industrial Distribution industry median of 24.34. Zaoh Co's overall GF Score™ is 78/100 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 Zaoh Co (TSE:9986), the current Gross Margin % is 46.43% 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 Zaoh Co (TSE:9986) Overvalued in 2026?
Based on GuruFocus' analysis, Zaoh Co stock appears to be overvalued.
The current stock price of 円2,448.00 is trading 2.4% above its estimated GF Value™ of 円2,390.72.
GuruFocus considers Zaoh Co to be Fairly Valued.
Key valuation signals for TSE:9986:
Gross Margin %: 46.43% (near median its 10-year median of 48.75)
GF Value™: 円2,390.72 vs. price of 円2,448.00 (2.4% above fair value)
Industry Position: 90.8% above the Industrial Distribution median (#7 of 153)
No single metric tells the full story. See the TSE:9986 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zaoh Co Ltd is engaged in the business of dealing with industrial and professional cleaning equipment. Its main business activity is to import cleaning and washing equipment for commercial, industrial, and consumer use from various manufacturers, mainly in Europe, the United States, and China, and to sell them throughout Japan. The company's product portfolio comprises power sweepers, vacuum cleaners, carpet cleaners, ironized water generators, water purifiers, steam cleaners, etc.
78GF Score
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