Nippon Parking Development Co (TSE:2353) 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 Parking Development Co had a gross margin of 41.82% for the quarter that ended in Jan. 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 Parking Development Co Gross Margin % Related Terms
Nippon Parking Development 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.
Nippon Parking Development Co Gross Margin % Chart
For the Conglomerates subindustry, Nippon Parking Development 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 Parking Development Co Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Nippon Parking Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Parking Development 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 Parking Development Co (TSE:2353) has a Gross Margin % of 41.82% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Parking Development Co and its competitors. This is near median its historical median of 39.11. Over the past decade, Nippon Parking Development Co's Gross Margin % has ranged from 35.07 to 44.48. According to the industry distribution chart, Nippon Parking Development Co ranks #118 out of 515 companies in the Conglomerates industry, placing it in the top 22.9%.
Is Nippon Parking Development Co's Gross Margin % too high?
Nippon Parking Development Co's current Gross Margin % of 41.82% is near median its 10-year median of 39.11. Over the past 10 years, this metric has ranged from a low of 35.07 to a high of 44.48. The Conglomerates industry median Gross Margin % is 25.98. Nippon Parking Development Co's value of 41.82% is 61% above this industry median. Based on the distribution chart, Nippon Parking Development Co ranks #118 out of 515 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Parking Development Co has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Parking Development Co's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Nippon Parking Development Co ranks #118 out of 515 companies for Gross Margin %. This places Nippon Parking Development Co in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.98. Nippon Parking Development Co's value of 41.82% is 61% above this benchmark. Historically, Nippon Parking Development Co's own Gross Margin % has ranged from 35.07 to 44.48 over the past decade. While the company's 10-year median is 39.11 vs. the industry median of 25.98, Nippon Parking Development 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.98, based on 515 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 Parking Development Co's current Gross Margin % of 41.82% is 61% 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 Parking Development Co and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Parking Development Co's current Gross Margin % is 41.82%, which is near median its own 10-year median of 39.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Parking Development Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Parking Development Co (TSE:2353) is currently considered Fairly Valued. The stock's GF Value™ is 円276.02, compared to a current price of 円257.00 — trading 6.9% below its estimated fair value. The current Gross Margin % is 41.82%, which is near median its 10-year median of 39.11 and 61% above the Conglomerates industry median of 25.98. Nippon Parking Development Co's overall GF Score™ is 91/100 with 1 warning sign 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 Parking Development Co (TSE:2353), the current Gross Margin % is 41.82% as of Jan. 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 Parking Development Co (TSE:2353) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Parking Development Co stock appears to be undervalued.
The current stock price of 円257.00 is trading 6.9% below its estimated GF Value™ of 円276.02.
GuruFocus considers Nippon Parking Development Co to be Fairly Valued.
Key valuation signals for TSE:2353:
Gross Margin %: 41.82% (near median its 10-year median of 39.11)
GF Value™: 円276.02 vs. price of 円257.00 (6.9% below fair value)
Industry Position: 61% above the Conglomerates median (#118 of 515)
No single metric tells the full story. See the TSE:2353 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Parking Development Co Business Description
Nippon Parking Development Co Ltd provides car parking solutions and services. The company's reporting segments consist of: i) Parking Business: operating and managing parking lots, ii) Ski Resort Business: operates and acquires ski resorts, and iii) Theme Park Business: involves the operation and acquisition of theme parks. The majority of revenue is derived from the Parking business segment.
91GF Score
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