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Nisso Pronity Co (FSE:3440) Gross Margin % : 28.27% (As of Feb. 2024)


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What is Nisso Pronity Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nisso Pronity Co's Gross Profit for the three months ended in Feb. 2024 was 円1,328 Mil. Nisso Pronity Co's Revenue for the three months ended in Feb. 2024 was 円4,697 Mil. Therefore, Nisso Pronity Co's Gross Margin % for the quarter that ended in Feb. 2024 was 28.27%.

Warning Sign:

Nisso Pronity Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.8%.


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

FSE:3440' s Gross Margin % Range Over the Past 10 Years
Min: 21.47   Med: 25.51   Max: 48.1
Current: 25.65


During the past 12 years, the highest Gross Margin % of Nisso Pronity Co was 48.10%. The lowest was 21.47%. And the median was 25.51%.

FSE:3440's Gross Margin % is ranked worse than
52.58% of 2942 companies
in the Industrial Products industry
Industry Median: 26.47 vs FSE:3440: 25.65

Nisso Pronity Co had a gross margin of 28.27% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Nisso Pronity Co was -3.80% per year.


Nisso Pronity Co Gross Margin % Historical Data

The historical data trend for Nisso Pronity 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.

* Premium members only.

Nisso Pronity Co Gross Margin % Chart

Nisso Pronity Co Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.13 23.90 21.85 22.54 21.47

Nisso Pronity 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.69 24.59 17.98 30.57 28.27

Competitive Comparison of Nisso Pronity Co's Gross Margin %

For the Metal Fabrication subindustry, Nisso Pronity 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.


Nisso Pronity Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Nisso Pronity Co's Gross Margin % distribution charts can be found below:

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



Nisso Pronity Co Gross Margin % Calculation

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

Nisso Pronity 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 )
=2694.6 / 12548.788
=(Revenue - Cost of Goods Sold) / Revenue
=(12548.788 - 9854.196) / 12548.788
=21.47 %

Nisso Pronity 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 )
=1327.6 / 4696.612
=(Revenue - Cost of Goods Sold) / Revenue
=(4696.612 - 3369.026) / 4696.612
=28.27 %

* 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.


Nisso Pronity Co  (FSE:3440) 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

Nisso Pronity Co had a gross margin of 28.27% 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.


Nisso Pronity Co Gross Margin % Related Terms

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Nisso Pronity Co (FSE:3440) Business Description

Traded in Other Exchanges
Address
1-15-29 Mukono, Minami-ku, Fukuoka-shi, JPN, 815-0035
Nisso Pronity Co Ltd operates in the metal-processing industry. The company offers processing equipment include bending robot, network compliant press brake, linear drive laser machine, fully automatic panel vendor, leveler shear line.

Nisso Pronity Co (FSE:3440) Headlines

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