Daido Steel CoDAIDF +26.83%57 Gross Margin % is 19.21% as of Dec. 2025, which is 10% above its 10-year median of 17.46. GuruFocus rates DAIDF with a GF Score™ of 57/100 and a GF Value™ of $7.17 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 597 Steel companies, Daido Steel Co ranks better than 63.65% on this metric.
The historical rank and industry rank for Daido Steel Co's Gross Margin % or its related term are showing as below:
DAIDF'
s Gross Margin % Range Over the Past 10 Years
Min: 14.83 Med: 17.46 Max: 18.31
Current: 17.52
During the past 13 years, the highestGross Margin % of Daido Steel Co was 18.31%. The lowest was 14.83%. And the median was 17.46%.
DAIDF's Gross Margin % is ranked better than 63.65% of 597
companies
in the Steel industry
Industry Median: 12.6
vs DAIDF: 17.52
Daido Steel Co had a gross margin of 19.21% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Daido Steel Co was 2.60% per year.
Daido Steel Co (OTCPK:DAIDF) 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
Daido Steel Co had a gross margin of 19.21% for the quarter that ended in Dec. 2025 => 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.
Daido Steel Co Gross Margin % Related Terms
Daido Steel Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Daido Steel 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 Steel subindustry, Daido Steel 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.
Daido Steel Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Daido Steel Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Daido Steel 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.
Daido Steel Co (DAIDF) has a Gross Margin % of 19.21% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Daido Steel Co and its competitors. This is 10% above median its historical median of 17.46. Over the past decade, Daido Steel Co's Gross Margin % has ranged from 14.83 to 18.31. According to the industry distribution chart, Daido Steel Co ranks #217 out of 597 companies in the Steel industry, placing it in the top 36.3%.
Is Daido Steel Co's Gross Margin % too high?
Daido Steel Co's current Gross Margin % of 19.21% is 10% above median its 10-year median of 17.46. Over the past 10 years, this metric has ranged from a low of 14.83 to a high of 18.31. The Steel industry median Gross Margin % is 12.60. Daido Steel Co's value of 19.21% is 52.5% above this industry median. Based on the distribution chart, Daido Steel Co ranks #217 out of 597 companies in the Steel industry, which is above the industry midpoint. Overall, Daido Steel Co has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Steel Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Daido Steel Co ranks #217 out of 597 companies for Gross Margin %. This puts Daido Steel Co in the upper half of its industry. The industry median Gross Margin % is 12.60. Daido Steel Co's value of 19.21% is 52.5% above this benchmark. Historically, Daido Steel Co's own Gross Margin % has ranged from 14.83 to 18.31 over the past decade. While the company's 10-year median is 17.46 vs. the industry median of 12.60, Daido Steel 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 597 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. Daido Steel Co's current Gross Margin % of 19.21% is 52.5% 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 Daido Steel Co and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daido Steel Co's current Gross Margin % is 19.21%, which is 10% above median its own 10-year median of 17.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Steel Co (DAIDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.17, compared to a current price of $11.70 — trading 63.2% above its estimated fair value. The current Gross Margin % is 19.21%, which is 10% above median its 10-year median of 17.46 and 52.5% above the Steel industry median of 12.60. Daido Steel Co's overall GF Score™ is 57/100 with 7 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 Daido Steel Co (DAIDF), the current Gross Margin % is 19.21% as of Dec. 2025. 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 Daido Steel Co (DAIDF) Overvalued in 2026?
Based on GuruFocus' analysis, Daido Steel Co stock appears to be overvalued.
The current stock price of $11.70 is trading 63.2% above its estimated GF Value™ of $7.17.
GuruFocus considers Daido Steel Co to be Significantly Overvalued.
Key valuation signals for DAIDF:
Gross Margin %: 19.21% (10% above median its 10-year median of 17.46)
GF Value™: $7.17 vs. price of $11.70 (63.2% above fair value)
Industry Position: 52.5% above the Steel median (#217 of 597)
No single metric tells the full story. See the DAIDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daido Steel Co Ltd is a Japan-based company that primarily operates through three segments. The special steel segment produces and distributes specialty steel for automotive parts, industrial machinery parts, electrical machinery parts, construction, and tool steel. The high-performance materials and magnetic materials segment produces and sells stainless steel, nickel-based alloys, electrical and electronic parts, magnetic material products, alloy powder, titanium products, and welding wire. The parts for automobile and industrial equipment segment is engaged in forging and casting for parts for automobiles, industrial machines, chemical equipment, and oil drilling rigs. The company generates majority of its revenue from the Japanese domestic market.
57GF Score
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