Nippon SharyoNPPSF 63 Gross Margin % is 20.60% as of Dec. 2025, which is 32% above its 10-year median of 15.62. GuruFocus rates NPPSF with a GF Score™ of 63/100 and a GF Value™ of $20.70 (Fairly Valued). The stock has 2 warning signs investors should review. Among 985 Transportation companies, Nippon Sharyo ranks worse than 52.28% on this metric.
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 Sharyo had a gross margin of 20.60% 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 Sharyo Gross Margin % Related Terms
Nippon Sharyo Gross Margin % Historical Data
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The historical data trend for Nippon Sharyo'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 Railroads subindustry, Nippon Sharyo'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 Sharyo Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Nippon Sharyo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Sharyo'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 Sharyo (NPPSF) has a Gross Margin % of 20.60% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Sharyo and its competitors. This is 32% above median its historical median of 15.62. Over the past decade, Nippon Sharyo's Gross Margin % has ranged from 2.56 to 19.59. According to the industry distribution chart, Nippon Sharyo ranks #515 out of 985 companies in the Transportation industry, placing it in the top 52.3%.
Is Nippon Sharyo's Gross Margin % too high?
Nippon Sharyo's current Gross Margin % of 20.60% is 32% above median its 10-year median of 15.62. Over the past 10 years, this metric has ranged from a low of 2.56 to a high of 19.59. The Transportation industry median Gross Margin % is 20.42. Nippon Sharyo's value of 20.60% is 0.9% above this industry median. Based on the distribution chart, Nippon Sharyo ranks #515 out of 985 companies in the Transportation industry, which is below the industry midpoint. Overall, Nippon Sharyo has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Sharyo's Gross Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Nippon Sharyo ranks #515 out of 985 companies for Gross Margin %. This places Nippon Sharyo in the lower half of its industry. The industry median Gross Margin % is 20.42. Nippon Sharyo's value of 20.60% is 0.9% above this benchmark. Historically, Nippon Sharyo's own Gross Margin % has ranged from 2.56 to 19.59 over the past decade. While the company's 10-year median is 15.62 vs. the industry median of 20.42, Nippon Sharyo 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 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 Sharyo's current Gross Margin % of 20.60% is 0.9% 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 Sharyo and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Sharyo's current Gross Margin % is 20.60%, which is 32% above median its own 10-year median of 15.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Sharyo stock overvalued right now?
Based on GuruFocus' analysis, Nippon Sharyo (NPPSF) is currently considered Fairly Valued. The stock's GF Value™ is $20.70, compared to a current price of $21.04 — trading 1.6% above its estimated fair value. The current Gross Margin % is 20.60%, which is 32% above median its 10-year median of 15.62 and 0.9% above the Transportation industry median of 20.42. Nippon Sharyo's overall GF Score™ is 63/100 with 2 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 Sharyo (NPPSF), the current Gross Margin % is 20.60% 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 Sharyo (NPPSF) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Sharyo stock appears to be overvalued.
The current stock price of $21.04 is trading 1.6% above its estimated GF Value™ of $20.70.
GuruFocus considers Nippon Sharyo to be Fairly Valued.
Key valuation signals for NPPSF:
Gross Margin %: 20.60% (32% above median its 10-year median of 15.62)
GF Value™: $20.70 vs. price of $21.04 (1.6% above fair value)
Industry Position: 0.9% above the Transportation median (#515 of 985)
No single metric tells the full story. See the NPPSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Sharyo Ltd is a Japan-based company engaged in the manufacture of railway rolling stock. The company operates through three segments. Its Railway rolling stock segment consists of manufacture and sales of rolling stock. The Transportation equipment and steel structure segment include production and trade of transportation equipment such as freight cars, tank trucks, heavy-duty industrial vehicles, and roadway and railway bridges. Its Construction equipment segment comprises of pile driving rigs, crawler cranes, casing rotators, portable diesel generator sets and emergency generators.
63GF Score
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