Nippon KodoshiTSE:3891 -8.74%69 Gross Margin % is 30.53% as of Mar. 2026, which is 17% above its 10-year median of 26.20. GuruFocus rates TSE:3891 with a GF Score™ of 69/100 and a GF Value™ of 円2,438.72 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,453 Hardware companies, Nippon Kodoshi ranks better than 61.15% on this metric.
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 Kodoshi had a gross margin of 30.53% for the quarter that ended in Mar. 2026 => Competition eroding margins
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 Kodoshi Gross Margin % Related Terms
Nippon Kodoshi Gross Margin % Historical Data
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The historical data trend for Nippon Kodoshi'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 Electronic Components subindustry, Nippon Kodoshi'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 Kodoshi Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Nippon Kodoshi's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Kodoshi'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 Kodoshi (TSE:3891) has a Gross Margin % of 30.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Kodoshi and its competitors. This is 17% above median its historical median of 26.20. Over the past decade, Nippon Kodoshi's Gross Margin % has ranged from 18.26 to 34.03. According to the industry distribution chart, Nippon Kodoshi ranks #953 out of 2453 companies in the Hardware industry, placing it in the top 38.9%.
Is Nippon Kodoshi's Gross Margin % too high?
Nippon Kodoshi's current Gross Margin % of 30.53% is 17% above median its 10-year median of 26.20. Over the past 10 years, this metric has ranged from a low of 18.26 to a high of 34.03. The Hardware industry median Gross Margin % is 24.52. Nippon Kodoshi's value of 30.53% is 24.5% above this industry median. Based on the distribution chart, Nippon Kodoshi ranks #953 out of 2453 companies in the Hardware industry, which is above the industry midpoint. Overall, Nippon Kodoshi has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Kodoshi's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Nippon Kodoshi ranks #953 out of 2453 companies for Gross Margin %. This puts Nippon Kodoshi in the upper half of its industry. The industry median Gross Margin % is 24.52. Nippon Kodoshi's value of 30.53% is 24.5% above this benchmark. Historically, Nippon Kodoshi's own Gross Margin % has ranged from 18.26 to 34.03 over the past decade. While the company's 10-year median is 26.20 vs. the industry median of 24.52, Nippon Kodoshi 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,453 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 Kodoshi's current Gross Margin % of 30.53% is 24.5% 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 Nippon Kodoshi and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Kodoshi's current Gross Margin % is 30.53%, which is 17% above median its own 10-year median of 26.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kodoshi stock overvalued right now?
Based on GuruFocus' analysis, Nippon Kodoshi (TSE:3891) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,438.72, compared to a current price of 円9,400.00 — trading 285.4% above its estimated fair value. The current Gross Margin % is 30.53%, which is 17% above median its 10-year median of 26.20 and 24.5% above the Hardware industry median of 24.52. Nippon Kodoshi's overall GF Score™ is 69/100 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 Kodoshi (TSE:3891), the current Gross Margin % is 30.53% 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 Kodoshi (TSE:3891) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Kodoshi stock appears to be overvalued.
The current stock price of 円9,400.00 is trading 285.4% above its estimated GF Value™ of 円2,438.72.
GuruFocus considers Nippon Kodoshi to be Significantly Overvalued.
Key valuation signals for TSE:3891:
Gross Margin %: 30.53% (17% above median its 10-year median of 26.20)
GF Value™: 円2,438.72 vs. price of 円9,400.00 (285.4% above fair value)
Industry Position: 24.5% above the Hardware median (#953 of 2453)
No single metric tells the full story. See the TSE:3891 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Kodoshi Corp manufactures separators for aluminium electrolytic capacitors and batteries. The company is engaged in the fusion of paper and electronics, the search for new materials, and finding applications in electronic components.
69GF Score
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