TOUMEI Co (TSE:4439) Gross Margin % : 32.09% (As of Feb. 2024)

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What is TOUMEI Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. TOUMEI Co's Gross Profit for the three months ended in Feb. 2024 was 円1,819 Mil. TOUMEI Co's Revenue for the three months ended in Feb. 2024 was 円5,669 Mil. Therefore, TOUMEI Co's Gross Margin % for the quarter that ended in Feb. 2024 was 32.09%.

Warning Sign:

TOUMEI Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.1%.

The historical rank and industry rank for TOUMEI Co's Gross Margin % or its related term are showing as below:

TSE:4439' s Gross Margin % Range Over the Past 10 Years
Min: 24.5 Med: 36.43 Max: 38.48
Current: 32.51

During the past 7 years, the highest Gross Margin % of TOUMEI Co was 38.48%. The lowest was 24.50%. And the median was 36.43%.

TSE:4439's Gross Margin % is ranked better than
66.67% of 480 companies
in the Conglomerates industry
Industry Median: 24.83 vs TSE:4439: 32.51

TOUMEI Co had a gross margin of 32.09% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for TOUMEI Co was -6.10% per year.

TOUMEI Co Gross Margin % Historical Data

The historical data trend for TOUMEI 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.

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TOUMEI Co Gross Margin % Chart

TOUMEI Co Annual Data

Trend

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Gross Margin %

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36.47

36.43

30.83

24.50

31.31

TOUMEI Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Gross Margin %	Get a 7-Day Free Trial															27.74	33.98	32.05	32.10	32.09

Competitive Comparison of TOUMEI Co's Gross Margin %

For the Conglomerates subindustry, TOUMEI 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.

TOUMEI Co's Gross Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, TOUMEI Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where TOUMEI Co's Gross Margin % falls into.

TOUMEI Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

TOUMEI Co's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )	=	Gross Profit (A: Aug. 2023 )	/	Revenue (A: Aug. 2023 )
	=	6427.9	/	20531.832
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20531.832 - 14103.921)	/	20531.832
	=	31.31 %

TOUMEI Co's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

Gross Margin % (Q: Feb. 2024 )	=	Gross Profit (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	1819.2	/	5668.671
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5668.671 - 3849.504)	/	5668.671
	=	32.09 %

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.

TOUMEI Co (TSE:4439) 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

TOUMEI Co had a gross margin of 32.09% for the quarter that ended in Feb. 2024 => Competition eroding margins

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.

TOUMEI Co Gross Margin % Related Terms

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TOUMEI Co (TSE:4439) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » TOUMEI Co Ltd (TSE:4439) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-1-39, Hatta chome, Mie Prefecture, Yokkaichi, JPN, 510-0001

Website

https://www.toumei.co.jp

TOUMEI Co Ltd is engaged in Office light 119 business, Office solution business, and Financial Planning Business. The company's services include provision of fiber-optic services and ancillary services, sales of information and communications equipment and environmental products, and provision of web services. It also offers insurance brokerage services.

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