Naigai TecTSE:3374 -0.62%77 Gross Margin % is 14.39% as of Mar. 2026, which is 24% above its 10-year median of 11.64. GuruFocus rates TSE:3374 with a GF Score™ of 77/100 and a GF Value™ of 円2,199.58 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,993 Industrial Products companies, Naigai Tec ranks worse than 83.06% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Naigai Tec's Gross Profit for the
six
months ended in Mar. 2026 was 円2,500 Mil. Naigai Tec's Revenue for the
six
months ended in Mar. 2026 was 円17,375 Mil. Therefore, Naigai Tec's Gross Margin % for the quarter that ended in Mar. 2026 was 14.39%.
The historical rank and industry rank for Naigai Tec's Gross Margin % or its related term are showing as below:
TSE:3374'
s Gross Margin % Range Over the Past 10 Years
Min: 10.38 Med: 11.64 Max: 13.62
Current: 13.62
During the past 13 years, the highestGross Margin % of Naigai Tec was 13.62%. The lowest was 10.38%. And the median was 11.64%.
TSE:3374's Gross Margin % is ranked worse than 83.06% of 2993
companies
in the Industrial Products industry
Industry Median: 26.83
vs TSE:3374: 13.62
Naigai Tec had a gross margin of 14.39% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Naigai Tec was 2.40% per year.
Naigai Tec (TSE:3374) 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
Naigai Tec had a gross margin of 14.39% 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.
Naigai Tec Gross Margin % Related Terms
Naigai Tec Gross Margin % Historical Data
* Premium members only.
The historical data trend for Naigai Tec'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 Electrical Equipment & Parts subindustry, Naigai Tec'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.
Naigai Tec Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Naigai Tec's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Naigai Tec'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.
Naigai Tec (TSE:3374) has a Gross Margin % of 14.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Naigai Tec and its competitors. This is 24% above median its historical median of 11.64. Over the past decade, Naigai Tec's Gross Margin % has ranged from 10.38 to 13.62. According to the industry distribution chart, Naigai Tec ranks #2486 out of 2993 companies in the Industrial Products industry, placing it in the top 83.1%.
Is Naigai Tec's Gross Margin % too high?
Naigai Tec's current Gross Margin % of 14.39% is 24% above median its 10-year median of 11.64. Over the past 10 years, this metric has ranged from a low of 10.38 to a high of 13.62. The Industrial Products industry median Gross Margin % is 26.83. Naigai Tec's value of 14.39% is 46.4% below this industry median. Based on the distribution chart, Naigai Tec ranks #2486 out of 2993 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Naigai Tec has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Naigai Tec's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Naigai Tec ranks #2486 out of 2993 companies for Gross Margin %. This places Naigai Tec in the lower half of its industry. The industry median Gross Margin % is 26.83. Naigai Tec's value of 14.39% is 46.4% below this benchmark. Historically, Naigai Tec's own Gross Margin % has ranged from 10.38 to 13.62 over the past decade. While the company's 10-year median is 11.64 vs. the industry median of 26.83, Naigai Tec has consistently been below 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.83, based on 2,993 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. Naigai Tec's current Gross Margin % of 14.39% is 46.4% below 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 Naigai Tec and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Naigai Tec's current Gross Margin % is 14.39%, which is 24% above median its own 10-year median of 11.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Naigai Tec stock overvalued right now?
Based on GuruFocus' analysis, Naigai Tec (TSE:3374) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,199.58, compared to a current price of 円3,210.00 — trading 45.9% above its estimated fair value. The current Gross Margin % is 14.39%, which is 24% above median its 10-year median of 11.64 and 46.4% below the Industrial Products industry median of 26.83. Naigai Tec's overall GF Score™ is 77/100 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 Naigai Tec (TSE:3374), the current Gross Margin % is 14.39% 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 Naigai Tec (TSE:3374) Overvalued in 2026?
Based on GuruFocus' analysis, Naigai Tec stock appears to be overvalued.
The current stock price of 円3,210.00 is trading 45.9% above its estimated GF Value™ of 円2,199.58.
GuruFocus considers Naigai Tec to be Significantly Overvalued.
Key valuation signals for TSE:3374:
Gross Margin %: 14.39% (24% above median its 10-year median of 11.64)
GF Value™: 円2,199.58 vs. price of 円3,210.00 (45.9% above fair value)
Industry Position: 46.4% below the Industrial Products median (#2486 of 2993)
No single metric tells the full story. See the TSE:3374 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Naigai Tec Corp is engaged in electronics parts design, manufacture, logistics, and after-sale service. It sales, purchase, import and export of pneumatic devices, pneumatic application devices, working machines, electric devices, electronic devices, and other tools. It provides its services to Japan, China, and South Korea. The reportable segments include: Sales business and Contract manufacturing business.
77GF Score
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