Chuo Malleable Iron CoNGO:5607 +0.82%74 Gross Margin % is 13.40% as of Mar. 2026, which is 38% above its 10-year median of 9.71. GuruFocus rates NGO:5607 with a GF Score™ of 74/100 and a GF Value™ of 円542.05 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,310 Vehicles & Parts companies, Chuo Malleable Iron Co ranks worse than 76.41% on this metric.
NGO:5607's Gross Margin % is ranked worse than 76.41% of 1310
companies
in the Vehicles & Parts industry
Industry Median: 19.835
vs NGO:5607: 13.28
Chuo Malleable Iron Co had a gross margin of 13.40% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Chuo Malleable Iron Co was 8.70% per year.
Chuo Malleable Iron Co (NGO:5607) 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
Chuo Malleable Iron Co had a gross margin of 13.40% for the quarter that ended in Mar. 2026 => 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.
Chuo Malleable Iron Co Gross Margin % Related Terms
Chuo Malleable Iron Co Gross Margin % Historical Data
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The historical data trend for Chuo Malleable Iron 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 Auto Parts subindustry, Chuo Malleable Iron 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.
Chuo Malleable Iron Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Chuo Malleable Iron Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chuo Malleable Iron 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.
Chuo Malleable Iron Co (NGO:5607) has a Gross Margin % of 13.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chuo Malleable Iron Co and its competitors. This is 38% above median its historical median of 9.71. Over the past decade, Chuo Malleable Iron Co's Gross Margin % has ranged from 6.75 to 13.28. According to the industry distribution chart, Chuo Malleable Iron Co ranks #1001 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 76.4%.
Is Chuo Malleable Iron Co's Gross Margin % too high?
Chuo Malleable Iron Co's current Gross Margin % of 13.40% is 38% above median its 10-year median of 9.71. Over the past 10 years, this metric has ranged from a low of 6.75 to a high of 13.28. The Vehicles & Parts industry median Gross Margin % is 19.84. Chuo Malleable Iron Co's value of 13.40% is 32.4% below this industry median. Based on the distribution chart, Chuo Malleable Iron Co ranks #1001 out of 1310 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Chuo Malleable Iron Co has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chuo Malleable Iron Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Chuo Malleable Iron Co ranks #1001 out of 1310 companies for Gross Margin %. This places Chuo Malleable Iron Co in the lower half of its industry. The industry median Gross Margin % is 19.84. Chuo Malleable Iron Co's value of 13.40% is 32.4% below this benchmark. Historically, Chuo Malleable Iron Co's own Gross Margin % has ranged from 6.75 to 13.28 over the past decade. While the company's 10-year median is 9.71 vs. the industry median of 19.84, Chuo Malleable Iron 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 a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,310 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. Chuo Malleable Iron Co's current Gross Margin % of 13.40% is 32.4% 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 Chuo Malleable Iron Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chuo Malleable Iron Co's current Gross Margin % is 13.40%, which is 38% above median its own 10-year median of 9.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chuo Malleable Iron Co stock overvalued right now?
Based on GuruFocus' analysis, Chuo Malleable Iron Co (NGO:5607) is currently considered Modestly Overvalued. The stock's GF Value™ is 円542.05, compared to a current price of 円617.00 — trading 13.8% above its estimated fair value. The current Gross Margin % is 13.40%, which is 38% above median its 10-year median of 9.71 and 32.4% below the Vehicles & Parts industry median of 19.84. Chuo Malleable Iron Co's overall GF Score™ is 74/100 with 1 warning sign 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 Chuo Malleable Iron Co (NGO:5607), the current Gross Margin % is 13.40% 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 Chuo Malleable Iron Co (NGO:5607) Overvalued in 2026?
Based on GuruFocus' analysis, Chuo Malleable Iron Co stock appears to be overvalued.
The current stock price of 円617.00 is trading 13.8% above its estimated GF Value™ of 円542.05.
GuruFocus considers Chuo Malleable Iron Co to be Modestly Overvalued.
Key valuation signals for NGO:5607:
Gross Margin %: 13.40% (38% above median its 10-year median of 9.71)
GF Value™: 円542.05 vs. price of 円617.00 (13.8% above fair value)
Industry Position: 32.4% below the Vehicles & Parts median (#1001 of 1310)
No single metric tells the full story. See the NGO:5607 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chuo Malleable Iron Co Ltd is engaged in the manufacture and sale of malleable iron castings, ductile iron castings, plain iron castings, light alloy castings, and aluminum die castings. Its products are used in automobiles, industrial vehicles, industrial machinery, industrial robots, and water and gas supply parts. The company has two segments: Malleable Business, which manufactures and sells automotive parts, industrial vehicle parts, and industrial robot parts, and Metal Furniture Business, which manufactures and sells various types of chairs for offices and facilities.
74GF Score
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