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Okayama Paper Industries Co (TSE:3892) 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
Okayama Paper Industries Co had a gross margin of 24.19% for the quarter that ended in Feb. 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.
Okayama Paper Industries Co Gross Margin % Related Terms
Okayama 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.
Okayama Paper Industries Co Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Okayama 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.
Okayama Paper Industries Co Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Okayama Paper Industries Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Okayama 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.
Okayama Paper Industries Co (TSE:3892) has a Gross Margin % of 24.19% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Okayama Paper Industries Co and its competitors. This is near median its historical median of 23.39. Over the past decade, Okayama Paper Industries Co's Gross Margin % has ranged from 15.55 to 28.82. According to the industry distribution chart, Okayama Paper Industries Co ranks #112 out of 278 companies in the Forest Products industry, placing it in the top 40.3%.
Is Okayama Paper Industries Co's Gross Margin % too high?
Okayama Paper Industries Co's current Gross Margin % of 24.19% is near median its 10-year median of 23.39. Over the past 10 years, this metric has ranged from a low of 15.55 to a high of 28.82. The Forest Products industry median Gross Margin % is 18.69. Okayama Paper Industries Co's value of 24.19% is 29.5% above this industry median. Based on the distribution chart, Okayama Paper Industries Co ranks #112 out of 278 companies in the Forest Products industry, which is above the industry midpoint. Overall, Okayama Paper Industries Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Okayama Paper Industries Co's Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Okayama Paper Industries Co ranks #112 out of 278 companies for Gross Margin %. This puts Okayama Paper Industries Co in the upper half of its industry. The industry median Gross Margin % is 18.69. Okayama Paper Industries Co's value of 24.19% is 29.5% above this benchmark. Historically, Okayama Paper Industries Co's own Gross Margin % has ranged from 15.55 to 28.82 over the past decade. While the company's 10-year median is 23.39 vs. the industry median of 18.69, Okayama Paper Industries 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 18.69, based on 278 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. Okayama Paper Industries Co's current Gross Margin % of 24.19% is 29.5% 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 Okayama Paper Industries Co and its competitors. For the Forest Products industry, the median Gross Margin % is 18.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Okayama Paper Industries Co's current Gross Margin % is 24.19%, which is near median its own 10-year median of 23.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Okayama Paper Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Okayama Paper Industries Co (TSE:3892) is currently considered Fairly Valued. The stock's GF Value™ is 円1,426.33, compared to a current price of 円1,570.00 — trading 10.1% above its estimated fair value. The current Gross Margin % is 24.19%, which is near median its 10-year median of 23.39 and 29.5% above the Forest Products industry median of 18.69. Okayama Paper Industries Co's overall GF Score™ is 72/100 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 Okayama Paper Industries Co (TSE:3892), the current Gross Margin % is 24.19% as of Feb. 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 Okayama Paper Industries Co (TSE:3892) Overvalued in 2026?
Based on GuruFocus' analysis, Okayama Paper Industries Co stock appears to be overvalued.
The current stock price of 円1,570.00 is trading 10.1% above its estimated GF Value™ of 円1,426.33.
GuruFocus considers Okayama Paper Industries Co to be Fairly Valued.
Key valuation signals for TSE:3892:
Gross Margin %: 24.19% (near median its 10-year median of 23.39)
GF Value™: 円1,426.33 vs. price of 円1,570.00 (10.1% above fair value)
Industry Position: 29.5% above the Forest Products median (#112 of 278)
No single metric tells the full story. See the TSE:3892 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Okayama Paper Industries Co Ltd is engaged in manufacturing and sales of SMIC raw paper, paper tube base paper, flat sheet. It is in a packaging material field as a manufacturer of cardboard and decorative corrugated cardboard made of core paper and paper tube base paper. It offers products such as base papers, containerboard, stencil paper tubes, paper tube base papers, and cardboard plates.
72GF Score
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