Harmonic Drive SystemsTSE:6324 +4.93%67 Pretax Margin % is 5.53% as of Mar. 2026, which is 52% below its 10-year median of 11.42. GuruFocus rates TSE:6324 with a GF Score™ of 67/100 and a GF Value™ of 円3,868.69 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 3,032 Industrial Products companies, Harmonic Drive Systems ranks worse than 59.8% on this metric.
The historical rank and industry rank for Harmonic Drive Systems's Pretax Margin % or its related term are showing as below:
TSE:6324'
s Pretax Margin % Range Over the Past 10 Years
Min: -49.48 Med: 11.42 Max: 72.75
Current: 3.85
TSE:6324's Pretax Margin % is ranked worse than 59.8% of 3032
companies
in the Industrial Products industry
Industry Median: 5.805
vs TSE:6324: 3.85
Harmonic Drive Systems (TSE:6324) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Harmonic Drive Systems Pretax Margin % Related Terms
Harmonic Drive Systems Pretax Margin % Historical Data
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The historical data trend for Harmonic Drive Systems's Pretax 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:6324 vs GEV, ETN, PH: Pretax Margin % Comparison
For the Specialty Industrial Machinery subindustry, Harmonic Drive Systems's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Harmonic Drive Systems Pretax Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Harmonic Drive Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Harmonic Drive Systems's Pretax 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.
Harmonic Drive Systems (TSE:6324) has a Pretax Margin % of 5.53% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Harmonic Drive Systems and its competitors. This is 52% below median its historical median of 11.42. According to the industry distribution chart, Harmonic Drive Systems ranks #1813 out of 3032 companies in the Industrial Products industry, placing it in the top 59.8%.
Is Harmonic Drive Systems' Pretax Margin % too high?
Harmonic Drive Systems' current Pretax Margin % of 5.53% is 52% below median its 10-year median of 11.42. The Industrial Products industry median Pretax Margin % is 5.81. Harmonic Drive Systems' value of 5.53% is 4.7% below this industry median. Based on the distribution chart, Harmonic Drive Systems ranks #1813 out of 3032 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Harmonic Drive Systems has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harmonic Drive Systems' Pretax Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Harmonic Drive Systems ranks #1813 out of 3032 companies for Pretax Margin %. This places Harmonic Drive Systems in the lower half of its industry. The industry median Pretax Margin % is 5.81. Harmonic Drive Systems' value of 5.53% is 4.7% below this benchmark. While the company's 10-year median is 11.42 vs. the industry median of 5.81, Harmonic Drive Systems 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 Pretax Margin % for an Industrial Products company?
The median Pretax Margin % among Industrial Products companies is 5.81, based on 3,032 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Harmonic Drive Systems's current Pretax Margin % of 5.53% is 4.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Harmonic Drive Systems and its competitors. For the Industrial Products industry, the median Pretax Margin % is 5.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harmonic Drive Systems's current Pretax Margin % is 5.53%, which is 52% below median its own 10-year median of 11.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harmonic Drive Systems stock overvalued right now?
Based on GuruFocus' analysis, Harmonic Drive Systems (TSE:6324) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,868.69, compared to a current price of 円7,880.00 — trading 103.7% above its estimated fair value. The current Pretax Margin % is 5.53%, which is 52% below median its 10-year median of 11.42 and 4.7% below the Industrial Products industry median of 5.81. Harmonic Drive Systems' overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Harmonic Drive Systems (TSE:6324), the current Pretax Margin % is 5.53% 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 Harmonic Drive Systems (TSE:6324) Overvalued in 2026?
Based on GuruFocus' analysis, Harmonic Drive Systems stock appears to be overvalued.
The current stock price of 円7,880.00 is trading 103.7% above its estimated GF Value™ of 円3,868.69.
GuruFocus considers Harmonic Drive Systems to be Significantly Overvalued.
Key valuation signals for TSE:6324:
Pretax Margin %: 5.53% (52% below median its 10-year median of 11.42)
GF Value™: 円3,868.69 vs. price of 円7,880.00 (103.7% above fair value)
Industry Position: 4.7% below the Industrial Products median (#1813 of 3032)
No single metric tells the full story. See the TSE:6324 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harmonic Drive Systems manufactures and sells high-precision reduction gears (harmonic reducers) under the Harmonic Drive brand as well as other mechatronics products, including rotary actuators, linear actuators, and AC servo motors. The company also provides planetary gear speed reducers under the AccuDrive and Harmonic Planetary brands. Its products are used in industrial robots, semiconductor production equipment, and other high-precision equipment. HDS was founded in 1970 and is headquartered in Tokyo, Japan.
67GF Score
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