Shinwa Co (NGO:7607) Gross Margin %: 16.88% (As of Feb. 2026) — Near Median


NGO:7607 Shinwa Co Ltd NGO:7607
75 GF Score
Price 円2,464.00
GF Value 円2,491.51
! 3 Warning Signs
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What is Shinwa Co Gross Margin %?

Shinwa Co NGO:7607 75 Gross Margin % is 16.88% as of Feb. 2026, which is 2% above its 10-year median of 16.50. GuruFocus rates NGO:7607 with a GF Score™ of 75/100 and a GF Value™ of 円2,491.51. The stock has 3 warning signs investors should review. Among 2,997 Industrial Products companies, Shinwa Co ranks worse than 76.38% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Shinwa Co's Gross Profit for the three months ended in Feb. 2026 was 円4,227 Mil. Shinwa Co's Revenue for the three months ended in Feb. 2026 was 円25,051 Mil. Therefore, Shinwa Co's Gross Margin % for the quarter that ended in Feb. 2026 was 16.88%.


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

NGO:7607' s Gross Margin % Range Over the Past 10 Years
Min: 15.54   Med: 16.5   Max: 17.27
Current: 16.53


During the past 13 years, the highest Gross Margin % of Shinwa Co was 17.27%. The lowest was 15.54%. And the median was 16.50%.

NGO:7607's Gross Margin % is ranked worse than
76.38% of 2997 companies
in the Industrial Products industry
Industry Median: 26.79 vs NGO:7607: 16.53

Shinwa Co had a gross margin of 16.88% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shinwa Co was -0.80% per year.


Shinwa Co  (NGO:7607) 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

Shinwa Co had a gross margin of 16.88% for the quarter that ended in Feb. 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.


Shinwa Co Gross Margin % Related Terms


Shinwa Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Shinwa 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.

Shinwa Co Gross Margin % Chart

Shinwa Co Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.81 17.27 17.02 15.54 16.10

Shinwa Co Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
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 16.22 17.14 14.92 17.17 16.88

NGO:7607 vs GEV, ETN, PH: Gross Margin % Comparison

For the Specialty Industrial Machinery subindustry, Shinwa 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.


Shinwa Co Gross Margin % vs Industrial Products Industry

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

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


NGO:7607
75GF Score
Shinwa Co Ltd NGO:7607
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Shinwa Co Gross Margin % Calculation

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

Shinwa Co's Gross Margin for the fiscal year that ended in Aug. 2025 is calculated as

Gross Margin % (A: Aug. 2025 )=Gross Profit (A: Aug. 2025 ) / Revenue (A: Aug. 2025 )
=13865.3 / 86146.486
=(Revenue - Cost of Goods Sold) / Revenue
=(86146.486 - 72281.159) / 86146.486
=16.10 %

Shinwa Co's Gross Margin for the quarter that ended in Feb. 2026 is calculated as


Gross Margin % (Q: Feb. 2026 )=Gross Profit (Q: Feb. 2026 ) / Revenue (Q: Feb. 2026 )
=4227.4 / 25051.013
=(Revenue - Cost of Goods Sold) / Revenue
=(25051.013 - 20823.646) / 25051.013
=16.88 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 16.88% mean?
Shinwa Co (NGO:7607) has a Gross Margin % of 16.88% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shinwa Co and its competitors. This is near median its historical median of 16.50. Over the past decade, Shinwa Co's Gross Margin % has ranged from 15.54 to 17.27. According to the industry distribution chart, Shinwa Co ranks #2289 out of 2997 companies in the Industrial Products industry, placing it in the top 76.4%.
Is Shinwa Co's Gross Margin % too high?
Shinwa Co's current Gross Margin % of 16.88% is near median its 10-year median of 16.50. Over the past 10 years, this metric has ranged from a low of 15.54 to a high of 17.27. The Industrial Products industry median Gross Margin % is 26.79. Shinwa Co's value of 16.88% is 37% below this industry median. Based on the distribution chart, Shinwa Co ranks #2289 out of 2997 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Shinwa Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Shinwa Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shinwa Co ranks #2289 out of 2997 companies for Gross Margin %. This places Shinwa Co in the lower half of its industry. The industry median Gross Margin % is 26.79. Shinwa Co's value of 16.88% is 37% below this benchmark. Historically, Shinwa Co's own Gross Margin % has ranged from 15.54 to 17.27 over the past decade. While the company's 10-year median is 16.50 vs. the industry median of 26.79, Shinwa 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 2,997 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. Shinwa Co's current Gross Margin % of 16.88% is 37% 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 Shinwa Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinwa Co's current Gross Margin % is 16.88%, which is near median its own 10-year median of 16.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinwa Co stock overvalued right now?
Shinwa Co (NGO:7607) has a current Gross Margin % of 16.88%. The stock's GF Value™ is 円2,491.51, compared to a current price of 円2,464.00 — trading 1.1% below its estimated fair value. The current Gross Margin % is 16.88%, which is near median its 10-year median of 16.50 and 37% below the Industrial Products industry median of 26.79. Shinwa Co's overall GF Score™ is 75/100 with 3 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 Shinwa Co (NGO:7607), the current Gross Margin % is 16.88% as of Feb. 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 Shinwa Co (NGO:7607) Overvalued in 2026?

Based on GuruFocus' analysis, Shinwa Co stock appears to be undervalued. The current stock price of 円2,464.00 is trading 1.1% below its estimated GF Value™ of 円2,491.51.

Key valuation signals for NGO:7607:

  • Gross Margin %: 16.88% (near median its 10-year median of 16.50)
  • GF Value™: 円2,491.51 vs. price of 円2,464.00 (1.1% below fair value)
  • GF Score™: 75/100 with 3 warning signs
  • Industry Position: 37% below the Industrial Products median (#2289 of 2997)

No single metric tells the full story. See the NGO:7607 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shinwa Co Business Description

Other Exchanges 7607:Japan
Address 2-9-3, Naeshiro, Nagoya, JPN
Shinwa Co Ltd is an engineering, manufacturing, and international trading and logistics company. The deals in metal-joining, industrial machine and factory automation system related products, maintenance, re-condition and upgrade of machinery and equipment requiring specialized welding techniques.
75GF Score

Get the complete analysis for NGO:7607

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,464.00
Price
円2,491.51
GF Value