Nippon Paper Industries Co (TSE:3863) 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 Paper Industries Co had a gross margin of 17.38% 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 Paper Industries Co Gross Margin % Related Terms
Nippon Paper Industries 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 Paper Industries Co Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Nippon Paper Industries 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 Paper Industries Co Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Nippon Paper Industries Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Paper Industries 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 Paper Industries Co (TSE:3863) has a Gross Margin % of 17.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Paper Industries Co and its competitors. This is near median its historical median of 17.59. Over the past decade, Nippon Paper Industries Co's Gross Margin % has ranged from 12.53 to 20.65. According to the industry distribution chart, Nippon Paper Industries Co ranks #156 out of 279 companies in the Forest Products industry, placing it in the top 55.9%.
Is Nippon Paper Industries Co's Gross Margin % too high?
Nippon Paper Industries Co's current Gross Margin % of 17.38% is near median its 10-year median of 17.59. Over the past 10 years, this metric has ranged from a low of 12.53 to a high of 20.65. The Forest Products industry median Gross Margin % is 19.05. Nippon Paper Industries Co's value of 17.38% is 8.8% below this industry median. Based on the distribution chart, Nippon Paper Industries Co ranks #156 out of 279 companies in the Forest Products industry, which is below the industry midpoint. Overall, Nippon Paper Industries Co has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Paper Industries Co's Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Nippon Paper Industries Co ranks #156 out of 279 companies for Gross Margin %. This places Nippon Paper Industries Co in the lower half of its industry. The industry median Gross Margin % is 19.05. Nippon Paper Industries Co's value of 17.38% is 8.8% below this benchmark. Historically, Nippon Paper Industries Co's own Gross Margin % has ranged from 12.53 to 20.65 over the past decade. While the company's 10-year median is 17.59 vs. the industry median of 19.05, Nippon Paper Industries Co 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 a Forest Products company?
The median Gross Margin % among Forest Products companies is 19.05, based on 279 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 Paper Industries Co's current Gross Margin % of 17.38% is 8.8% 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 Nippon Paper Industries Co and its competitors. For the Forest Products industry, the median Gross Margin % is 19.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Paper Industries Co's current Gross Margin % is 17.38%, which is near median its own 10-year median of 17.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Paper Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Paper Industries Co (TSE:3863) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,145.82, compared to a current price of 円1,323.00 — trading 15.5% above its estimated fair value. The current Gross Margin % is 17.38%, which is near median its 10-year median of 17.59 and 8.8% below the Forest Products industry median of 19.05. Nippon Paper Industries Co's overall GF Score™ is 60/100 with 6 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 Paper Industries Co (TSE:3863), the current Gross Margin % is 17.38% 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 Paper Industries Co (TSE:3863) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Paper Industries Co stock appears to be overvalued.
The current stock price of 円1,323.00 is trading 15.5% above its estimated GF Value™ of 円1,145.82.
GuruFocus considers Nippon Paper Industries Co to be Modestly Overvalued.
Key valuation signals for TSE:3863:
Gross Margin %: 17.38% (near median its 10-year median of 17.59)
GF Value™: 円1,145.82 vs. price of 円1,323.00 (15.5% above fair value)
Industry Position: 8.8% below the Forest Products median (#156 of 279)
No single metric tells the full story. See the TSE:3863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Paper Industries Co Ltd produces and sells a variety of paper products. The company's paper products include newsprint, printing, sanitary, and packaging paper, as well as container board and boxes. The firm also sells construction materials, and generates electric power. Nippon Paper organizes itself into four segments based on product type: pulp and paper; paper related; wood products and construction related; and other. The pulp and paper segment generates the majority of revenue. The majority of sales are made in Japan.
60GF Score
Get the complete analysis for TSE:3863
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:3863 has been successfully added to your 
