Nippon Paint Holdings CoNPCPF 79 Gross Margin % is 43.86% as of Mar. 2026, which is 10% above its 10-year median of 40.03. GuruFocus rates NPCPF with a GF Score™ of 79/100 and a GF Value™ of $8.04 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,565 Chemicals companies, Nippon Paint Holdings Co ranks better than 82.49% on this metric.
Nippon Paint Holdings Co (OTCPK:NPCPF) 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
Nippon Paint Holdings Co had a gross margin of 43.86% for the quarter that ended in Mar. 2026 => Durable 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.
Nippon Paint Holdings Co Gross Margin % Related Terms
Nippon Paint Holdings Co Gross Margin % Historical Data
* 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 Specialty Chemicals subindustry, Nippon Paint Holdings 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.
Nippon Paint Holdings Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Paint Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Paint Holdings 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.
Nippon Paint Holdings Co (NPCPF) has a Gross Margin % of 43.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Paint Holdings Co and its competitors. This is 10% above median its historical median of 40.03. Over the past decade, Nippon Paint Holdings Co's Gross Margin % has ranged from 37.24 to 42.29. According to the industry distribution chart, Nippon Paint Holdings Co ranks #274 out of 1565 companies in the Chemicals industry, placing it in the top 17.5%.
Is Nippon Paint Holdings Co's Gross Margin % too high?
Nippon Paint Holdings Co's current Gross Margin % of 43.86% is 10% above median its 10-year median of 40.03. Over the past 10 years, this metric has ranged from a low of 37.24 to a high of 42.29. The Chemicals industry median Gross Margin % is 23.38. Nippon Paint Holdings Co's value of 43.86% is 87.6% above this industry median. Based on the distribution chart, Nippon Paint Holdings Co ranks #274 out of 1565 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Paint Holdings Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Paint Holdings Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nippon Paint Holdings Co ranks #274 out of 1565 companies for Gross Margin %. This places Nippon Paint Holdings Co in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.38. Nippon Paint Holdings Co's value of 43.86% is 87.6% above this benchmark. Historically, Nippon Paint Holdings Co's own Gross Margin % has ranged from 37.24 to 42.29 over the past decade. While the company's 10-year median is 40.03 vs. the industry median of 23.38, Nippon Paint Holdings 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. Nippon Paint Holdings Co's current Gross Margin % of 43.86% is 87.6% 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 Nippon Paint Holdings 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. Nippon Paint Holdings Co's current Gross Margin % is 43.86%, which is 10% above median its own 10-year median of 40.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Paint Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Paint Holdings Co (NPCPF) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.04, compared to a current price of $7.05 — trading 12.3% below its estimated fair value. The current Gross Margin % is 43.86%, which is 10% above median its 10-year median of 40.03 and 87.6% above the Chemicals industry median of 23.38. Nippon Paint Holdings Co's overall GF Score™ is 79/100 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 Nippon Paint Holdings Co (NPCPF), the current Gross Margin % is 43.86% 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 Nippon Paint Holdings Co (NPCPF) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Paint Holdings Co stock appears to be undervalued.
The current stock price of $7.05 is trading 12.3% below its estimated GF Value™ of $8.04.
GuruFocus considers Nippon Paint Holdings Co to be Modestly Undervalued.
Key valuation signals for NPCPF:
Gross Margin %: 43.86% (10% above median its 10-year median of 40.03)
GF Value™: $8.04 vs. price of $7.05 (12.3% below fair value)
Industry Position: 87.6% above the Chemicals median (#274 of 1565)
No single metric tells the full story. See the NPCPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Paint is a global paint company with operations in over 50 countries. About two-thirds of sales are in decorative paint, serving mostly residential and some commercial customers. It has the dominant share of the paint markets in China and some smaller Asian countries, as well as Australia. In other regions, it's often one of the three largest players. Its products are distributed via paint and home improvement retailers, some 300,000 distributors globally. Household brands include Nipsea, Nippon Paint, Dulux (in Asia, the Pacific, and Europe), British Paints, Betek Boya, and Alina, among others. About one-fourth of sales are in industrial coatings and paints. Here, customer groups include manufacturers of automotive and industrial products.
79GF Score
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