Nintendo CoMEX:NTDOYN +0.63%68 Gross Margin % is 38.94% as of Dec. 2025, which is 25% below its 10-year median of 52.11. GuruFocus rates MEX:NTDOYN with a GF Score™ of 68/100 and a GF Value™ of MXN1,495.04 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 497 Interactive Media companies, Nintendo Co ranks worse than 74.65% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Nintendo Co's Gross Profit for the
three
months ended in Dec. 2025 was MXN36,261 Mil. Nintendo Co's Revenue for the
three
months ended in Dec. 2025 was MXN93,117 Mil. Therefore, Nintendo Co's Gross Margin % for the quarter that ended in Dec. 2025 was 38.94%.
Warning Sign:
Nintendo Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.9%.
The historical rank and industry rank for Nintendo Co's Gross Margin % or its related term are showing as below:
MEX:NTDOYN'
s Gross Margin % Range Over the Past 10 Years
Min: 38.23 Med: 52.11 Max: 60.96
Current: 39.3
During the past 13 years, the highestGross Margin % of Nintendo Co was 60.96%. The lowest was 38.23%. And the median was 52.11%.
MEX:NTDOYN's Gross Margin % is ranked worse than 74.65% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs MEX:NTDOYN: 39.30
Nintendo Co had a gross margin of 38.94% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nintendo Co was -3.90% per year.
Nintendo Co (MEX:NTDOYN) 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
Nintendo Co had a gross margin of 38.94% for the quarter that ended in Dec. 2025 => 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.
Nintendo Co Gross Margin % Related Terms
Nintendo Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nintendo 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.
MEX:NTDOYN vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Nintendo 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.
Nintendo Co Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nintendo Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nintendo 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.
Nintendo Co (MEX:NTDOYN) has a Gross Margin % of 38.94% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nintendo Co and its competitors. This is 25% below median its historical median of 52.11. Over the past decade, Nintendo Co's Gross Margin % has ranged from 38.23 to 60.96. According to the industry distribution chart, Nintendo Co ranks #371 out of 497 companies in the Interactive Media industry, placing it in the top 74.6%.
Is Nintendo Co's Gross Margin % too high?
Nintendo Co's current Gross Margin % of 38.94% is 25% below median its 10-year median of 52.11. Over the past 10 years, this metric has ranged from a low of 38.23 to a high of 60.96. The Interactive Media industry median Gross Margin % is 62.58. Nintendo Co's value of 38.94% is 37.8% below this industry median. Based on the distribution chart, Nintendo Co ranks #371 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Nintendo Co has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Nintendo Co's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nintendo Co ranks #371 out of 497 companies for Gross Margin %. This places Nintendo Co in the lower half of its industry. The industry median Gross Margin % is 62.58. Nintendo Co's value of 38.94% is 37.8% below this benchmark. Historically, Nintendo Co's own Gross Margin % has ranged from 38.23 to 60.96 over the past decade. While the company's 10-year median is 52.11 vs. the industry median of 62.58, Nintendo Co 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 Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Nintendo Co's current Gross Margin % of 38.94% is 37.8% 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 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 Nintendo Co and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nintendo Co's current Gross Margin % is 38.94%, which is 25% below median its own 10-year median of 52.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nintendo Co stock overvalued right now?
Based on GuruFocus' analysis, Nintendo Co (MEX:NTDOYN) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,495.04, compared to a current price of MXN805.00 — trading 46.2% below its estimated fair value. The current Gross Margin % is 38.94%, which is 25% below median its 10-year median of 52.11 and 37.8% below the Interactive Media industry median of 62.58. Nintendo Co's overall GF Score™ is 68/100 with 4 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 Nintendo Co (MEX:NTDOYN), the current Gross Margin % is 38.94% 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 Nintendo Co (MEX:NTDOYN) Overvalued in 2026?
Based on GuruFocus' analysis, Nintendo Co stock appears to be undervalued.
The current stock price of MXN805.00 is trading 46.2% below its estimated GF Value™ of MXN1,495.04.
GuruFocus considers Nintendo Co to be Possible Value Trap.
Key valuation signals for MEX:NTDOYN:
Gross Margin %: 38.94% (25% below median its 10-year median of 52.11)
GF Value™: MXN1,495.04 vs. price of MXN805.00 (46.2% below fair value)
Industry Position: 37.8% below the Interactive Media median (#371 of 497)
No single metric tells the full story. See the MEX:NTDOYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nintendo started its video game console business in 1983 by launching the NES, and started its portable console business in 1989 by launching the Game Boy. Since then, the firm has focused on expanding the gaming population by delivering unique entertainment experiences on its original console systems. However, Nintendo not only makes game consoles, but also owns world-renowned IPs such as Super Mario, Pokemon, and Zelda, which have been a source of cash flow for 40 years.
68GF Score
Get the complete analysis for MEX:NTDOYN
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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