Denka CoDENKF 56 Gross Margin % is 26.22% as of Mar. 2026, which is 5% above its 10-year median of 24.94. GuruFocus rates DENKF with a GF Score™ of 56/100 and a GF Value™ of $9.54. The stock has 11 warning signs investors should review. Among 1,565 Chemicals companies, Denka Co ranks better than 52.84% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Denka Co's Gross Profit for the
three
months ended in Mar. 2026 was $154 Mil. Denka Co's Revenue for the
three
months ended in Mar. 2026 was $589 Mil. Therefore, Denka Co's Gross Margin % for the quarter that ended in Mar. 2026 was 26.22%.
Warning Sign:
Denka Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.8%.
The historical rank and industry rank for Denka Co's Gross Margin % or its related term are showing as below:
DENKF'
s Gross Margin % Range Over the Past 10 Years
Min: 21.14 Med: 24.94 Max: 28.27
Current: 24.53
During the past 13 years, the highestGross Margin % of Denka Co was 28.27%. The lowest was 21.14%. And the median was 24.94%.
DENKF's Gross Margin % is ranked better than 52.84% of 1565
companies
in the Chemicals industry
Industry Median: 23.38
vs DENKF: 24.53
Denka Co had a gross margin of 26.22% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Denka Co was -4.80% per year.
Denka Co (OTCPK:DENKF) 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
Denka Co had a gross margin of 26.22% for the quarter that ended in Mar. 2026 => 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.
Denka Co Gross Margin % Related Terms
Denka Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Denka 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, Denka 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.
Denka Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Denka Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Denka 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.
Denka Co (DENKF) has a Gross Margin % of 26.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Denka Co and its competitors. This is near median its historical median of 24.94. Over the past decade, Denka Co's Gross Margin % has ranged from 21.14 to 28.27. According to the industry distribution chart, Denka Co ranks #738 out of 1565 companies in the Chemicals industry, placing it in the top 47.2%.
Is Denka Co's Gross Margin % too high?
Denka Co's current Gross Margin % of 26.22% is near median its 10-year median of 24.94. Over the past 10 years, this metric has ranged from a low of 21.14 to a high of 28.27. The Chemicals industry median Gross Margin % is 23.38. Denka Co's value of 26.22% is 12.1% above this industry median. Based on the distribution chart, Denka Co ranks #738 out of 1565 companies in the Chemicals industry, which is above the industry midpoint. Overall, Denka Co has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Denka Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Denka Co ranks #738 out of 1565 companies for Gross Margin %. This puts Denka Co in the upper half of its industry. The industry median Gross Margin % is 23.38. Denka Co's value of 26.22% is 12.1% above this benchmark. Historically, Denka Co's own Gross Margin % has ranged from 21.14 to 28.27 over the past decade. While the company's 10-year median is 24.94 vs. the industry median of 23.38, Denka 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 23.38, based on 1,565 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. Denka Co's current Gross Margin % of 26.22% is 12.1% 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 Denka Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denka Co's current Gross Margin % is 26.22%, which is near median its own 10-year median of 24.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denka Co stock overvalued right now?
Denka Co (DENKF) has a current Gross Margin % of 26.22%. The stock's GF Value™ is $9.54, compared to a current price of $28.00 — trading 193.5% above its estimated fair value. The current Gross Margin % is 26.22%, which is near median its 10-year median of 24.94 and 12.1% above the Chemicals industry median of 23.38. Denka Co's overall GF Score™ is 56/100 with 11 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 Denka Co (DENKF), the current Gross Margin % is 26.22% 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 Denka Co (DENKF) Overvalued in 2026?
Based on GuruFocus' analysis, Denka Co stock appears to be overvalued.
The current stock price of $28.00 is trading 193.5% above its estimated GF Value™ of $9.54.
Key valuation signals for DENKF:
Gross Margin %: 26.22% (near median its 10-year median of 24.94)
GF Value™: $9.54 vs. price of $28.00 (193.5% above fair value)
Industry Position: 12.1% above the Chemicals median (#738 of 1565)
No single metric tells the full story. See the DENKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denka Co Ltd manufactures and sells chemicals, plastics, and chemical-based products. The firm organizes itself into four segments based on product type. The elastomers and performance plastics segment, which generates more revenue than any other segment, sells rubber products used by the automotive industry and plastics used to manufacture electronics including televisions. The infrastructure and social solutions segment sells cement and fertilizer to the construction and building industries. The electronics and innovative products segment sells film, and resins used by the electronics industry. The life science and environment products segment sells housing materials including rain gutters, plastic food packaging materials, and industrial materials including electrical tape.
56GF Score
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