Nippon Kayaku CoNPKYF 79 Gross Margin % is 30.16% as of Dec. 2025, which is 10% below its 10-year median of 33.41. GuruFocus rates NPKYF with a GF Score™ of 79/100 and a GF Value™ of $6.77. The stock has 7 warning signs investors should review. Among 1,565 Chemicals companies, Nippon Kayaku Co ranks better than 65.43% on this metric.
Nippon Kayaku Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for Nippon Kayaku Co's Gross Margin % or its related term are showing as below:
NPKYF'
s Gross Margin % Range Over the Past 10 Years
Min: 30.13 Med: 33.41 Max: 40.13
Current: 30.13
During the past 13 years, the highestGross Margin % of Nippon Kayaku Co was 40.13%. The lowest was 30.13%. And the median was 33.41%.
NPKYF's Gross Margin % is ranked better than 65.43% of 1565
companies
in the Chemicals industry
Industry Median: 23.38
vs NPKYF: 30.13
Nippon Kayaku Co had a gross margin of 30.16% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nippon Kayaku Co was -2.00% per year.
Nippon Kayaku Co (OTCPK:NPKYF) 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 Kayaku Co had a gross margin of 30.16% 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.
Nippon Kayaku Co Gross Margin % Related Terms
Nippon Kayaku Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Kayaku 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 Chemicals subindustry, Nippon Kayaku 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 Kayaku Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Kayaku Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Kayaku 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 Kayaku Co (NPKYF) has a Gross Margin % of 30.16% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Kayaku Co and its competitors. This is 10% below median its historical median of 33.41. Over the past decade, Nippon Kayaku Co's Gross Margin % has ranged from 30.13 to 40.13. According to the industry distribution chart, Nippon Kayaku Co ranks #541 out of 1565 companies in the Chemicals industry, placing it in the top 34.6%.
Is Nippon Kayaku Co's Gross Margin % too high?
Nippon Kayaku Co's current Gross Margin % of 30.16% is 10% below median its 10-year median of 33.41. Over the past 10 years, this metric has ranged from a low of 30.13 to a high of 40.13. The Chemicals industry median Gross Margin % is 23.38. Nippon Kayaku Co's value of 30.16% is 29% above this industry median. Based on the distribution chart, Nippon Kayaku Co ranks #541 out of 1565 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Kayaku Co has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Kayaku Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Nippon Kayaku Co ranks #541 out of 1565 companies for Gross Margin %. This puts Nippon Kayaku Co in the upper half of its industry. The industry median Gross Margin % is 23.38. Nippon Kayaku Co's value of 30.16% is 29% above this benchmark. Historically, Nippon Kayaku Co's own Gross Margin % has ranged from 30.13 to 40.13 over the past decade. While the company's 10-year median is 33.41 vs. the industry median of 23.38, Nippon Kayaku 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 Kayaku Co's current Gross Margin % of 30.16% is 29% 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 Kayaku 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 Kayaku Co's current Gross Margin % is 30.16%, which is 10% below median its own 10-year median of 33.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kayaku Co stock overvalued right now?
Nippon Kayaku Co (NPKYF) has a current Gross Margin % of 30.16%. The stock's GF Value™ is $6.77, compared to a current price of $8.44 — trading 24.7% above its estimated fair value. The current Gross Margin % is 30.16%, which is 10% below median its 10-year median of 33.41 and 29% above the Chemicals industry median of 23.38. Nippon Kayaku Co's overall GF Score™ is 79/100 with 7 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 Kayaku Co (NPKYF), the current Gross Margin % is 30.16% 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 Nippon Kayaku Co (NPKYF) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Kayaku Co stock appears to be overvalued.
The current stock price of $8.44 is trading 24.7% above its estimated GF Value™ of $6.77.
Key valuation signals for NPKYF:
Gross Margin %: 30.16% (10% below median its 10-year median of 33.41)
GF Value™: $6.77 vs. price of $8.44 (24.7% above fair value)
Industry Position: 29% above the Chemicals median (#541 of 1565)
No single metric tells the full story. See the NPKYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
79GF Score
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