Nihon House Holdings CoTSE:1873 62 Gross Margin % is 46.53% as of Apr. 2026, which is 24% above its 10-year median of 37.58. GuruFocus rates TSE:1873 with a GF Score™ of 62/100 and a GF Value™ of 円262.45 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 89 Homebuilding & Construction companies, Nihon House Holdings Co ranks better than 91.01% on this metric.
TSE:1873's Gross Margin % is ranked better than 91.01% of 89
companies
in the Homebuilding & Construction industry
Industry Median: 21.3
vs TSE:1873: 45.36
Nihon House Holdings Co had a gross margin of 46.53% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nihon House Holdings Co was 5.00% per year.
Nihon House Holdings Co (TSE:1873) 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
Nihon House Holdings Co had a gross margin of 46.53% for the quarter that ended in Apr. 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.
Nihon House Holdings Co Gross Margin % Related Terms
Nihon House 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.
TSE:1873 vs DHI, PHM, LEN: Gross Margin % Comparison
For the Residential Construction subindustry, Nihon House 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.
Nihon House Holdings Co Gross Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Nihon House Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nihon House 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.
Nihon House Holdings Co (TSE:1873) has a Gross Margin % of 46.53% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nihon House Holdings Co and its competitors. This is 24% above median its historical median of 37.58. Over the past decade, Nihon House Holdings Co's Gross Margin % has ranged from 33.63 to 45.36. According to the industry distribution chart, Nihon House Holdings Co ranks #8 out of 89 companies in the Homebuilding & Construction industry, placing it in the top 9%.
Is Nihon House Holdings Co's Gross Margin % too high?
Nihon House Holdings Co's current Gross Margin % of 46.53% is 24% above median its 10-year median of 37.58. Over the past 10 years, this metric has ranged from a low of 33.63 to a high of 45.36. The Homebuilding & Construction industry median Gross Margin % is 21.30. Nihon House Holdings Co's value of 46.53% is 118.5% above this industry median. Based on the distribution chart, Nihon House Holdings Co ranks #8 out of 89 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Nihon House Holdings Co has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon House Holdings Co's Gross Margin % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Nihon House Holdings Co ranks #8 out of 89 companies for Gross Margin %. This places Nihon House Holdings Co in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 21.30. Nihon House Holdings Co's value of 46.53% is 118.5% above this benchmark. Historically, Nihon House Holdings Co's own Gross Margin % has ranged from 33.63 to 45.36 over the past decade. While the company's 10-year median is 37.58 vs. the industry median of 21.30, Nihon House 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 Homebuilding & Construction company?
The median Gross Margin % among Homebuilding & Construction companies is 21.30, based on 89 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. Nihon House Holdings Co's current Gross Margin % of 46.53% is 118.5% 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 Nihon House Holdings Co and its competitors. For the Homebuilding & Construction industry, the median Gross Margin % is 21.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon House Holdings Co's current Gross Margin % is 46.53%, which is 24% above median its own 10-year median of 37.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon House Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon House Holdings Co (TSE:1873) is currently considered Modestly Overvalued. The stock's GF Value™ is 円262.45, compared to a current price of 円305.00 — trading 16.2% above its estimated fair value. The current Gross Margin % is 46.53%, which is 24% above median its 10-year median of 37.58 and 118.5% above the Homebuilding & Construction industry median of 21.30. Nihon House Holdings Co's overall GF Score™ is 62/100 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 Nihon House Holdings Co (TSE:1873), the current Gross Margin % is 46.53% as of Apr. 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 Nihon House Holdings Co (TSE:1873) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon House Holdings Co stock appears to be overvalued.
The current stock price of 円305.00 is trading 16.2% above its estimated GF Value™ of 円262.45.
GuruFocus considers Nihon House Holdings Co to be Modestly Overvalued.
Key valuation signals for TSE:1873:
Gross Margin %: 46.53% (24% above median its 10-year median of 37.58)
GF Value™: 円262.45 vs. price of 円305.00 (16.2% above fair value)
Industry Position: 118.5% above the Homebuilding & Construction median (#8 of 89)
No single metric tells the full story. See the TSE:1873 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon House Holdings Co Ltd is engaged in businesses related to the residential lifestyle and service industries, such as the housing business, which focuses on contract construction of housing and the development and sale of residential land, and the hotel business, which operates hotel and leisure facilities.
62GF Score
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