Nippon SteelSTU:NPS -2.44%70 Gross Margin % is 14.97% as of Mar. 2026, which is 8% above its 10-year median of 13.87. GuruFocus rates STU:NPS with a GF Score™ of 70/100 and a GF Value™ of €3.93 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 594 Steel companies, Nippon Steel ranks better than 54.38% on this metric.
The historical rank and industry rank for Nippon Steel's Gross Margin % or its related term are showing as below:
STU:NPS'
s Gross Margin % Range Over the Past 10 Years
Min: 10.29 Med: 13.87 Max: 17.94
Current: 14.36
During the past 13 years, the highestGross Margin % of Nippon Steel was 17.94%. The lowest was 10.29%. And the median was 13.87%.
STU:NPS's Gross Margin % is ranked better than 54.38% of 594
companies
in the Steel industry
Industry Median: 12.61
vs STU:NPS: 14.36
Nippon Steel had a gross margin of 14.97% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nippon Steel was 1.70% per year.
Nippon Steel (STU:NPS) 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 Steel had a gross margin of 14.97% 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.
Nippon Steel Gross Margin % Related Terms
Nippon Steel Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Steel'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.
STU:NPS vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Nippon Steel'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 Steel Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Steel's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Steel'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 Steel (STU:NPS) has a Gross Margin % of 14.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Steel and its competitors. This is near median its historical median of 13.87. Over the past decade, Nippon Steel's Gross Margin % has ranged from 10.29 to 17.94. According to the industry distribution chart, Nippon Steel ranks #271 out of 594 companies in the Steel industry, placing it in the top 45.6%.
Is Nippon Steel's Gross Margin % too high?
Nippon Steel's current Gross Margin % of 14.97% is near median its 10-year median of 13.87. Over the past 10 years, this metric has ranged from a low of 10.29 to a high of 17.94. The Steel industry median Gross Margin % is 12.61. Nippon Steel's value of 14.97% is 18.7% above this industry median. Based on the distribution chart, Nippon Steel ranks #271 out of 594 companies in the Steel industry, which is above the industry midpoint. Overall, Nippon Steel has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Steel's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Steel ranks #271 out of 594 companies for Gross Margin %. This puts Nippon Steel in the upper half of its industry. The industry median Gross Margin % is 12.61. Nippon Steel's value of 14.97% is 18.7% above this benchmark. Historically, Nippon Steel's own Gross Margin % has ranged from 10.29 to 17.94 over the past decade. While the company's 10-year median is 13.87 vs. the industry median of 12.61, Nippon Steel 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 Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 594 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 Steel's current Gross Margin % of 14.97% is 18.7% 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 Steel and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Steel's current Gross Margin % is 14.97%, which is near median its own 10-year median of 13.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Steel stock overvalued right now?
Based on GuruFocus' analysis, Nippon Steel (STU:NPS) is currently considered Modestly Undervalued. The stock's GF Value™ is €3.93, compared to a current price of €2.90 — trading 26.2% below its estimated fair value. The current Gross Margin % is 14.97%, which is near median its 10-year median of 13.87 and 18.7% above the Steel industry median of 12.61. Nippon Steel's overall GF Score™ is 70/100 with 8 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 Steel (STU:NPS), the current Gross Margin % is 14.97% 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 Steel (STU:NPS) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Steel stock appears to be undervalued.
The current stock price of €2.90 is trading 26.2% below its estimated GF Value™ of €3.93.
GuruFocus considers Nippon Steel to be Modestly Undervalued.
Key valuation signals for STU:NPS:
Gross Margin %: 14.97% (near median its 10-year median of 13.87)
GF Value™: €3.93 vs. price of €2.90 (26.2% below fair value)
Industry Position: 18.7% above the Steel median (#271 of 594)
No single metric tells the full story. See the STU:NPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Steel Corp is mainly engaged in the steel manufacturing business, engineering business, chemical & material business, and system solution business. The company operates through four business segments. The Chemicals & Materials segment manufactures and sells coal chemicals, petrochemicals, electronic materials, semiconductors, carbon fibers, composites, and processed metal products. The Engineering segment handles industrial machinery, steel structures, construction contracting, waste disposal, recycling, and energy supply. The Steel segment focuses on the production and sale of steel products. The System Solutions segment provides IT consulting, outsourcing, and related services. It generates the majority of its revenue from the Steel segment.
70GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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