Nankai Chemical CoTSE:4040 +0.72%72 Gross Margin % is 27.43% as of Mar. 2026, which is 10% above its 10-year median of 25.02. GuruFocus rates TSE:4040 with a GF Score™ of 72/100 and a GF Value™ of 円2,860.33 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,560 Chemicals companies, Nankai Chemical Co ranks better than 61.99% on this metric.
The historical rank and industry rank for Nankai Chemical Co's Gross Margin % or its related term are showing as below:
TSE:4040'
s Gross Margin % Range Over the Past 10 Years
Min: 22.98 Med: 25.02 Max: 28.39
Current: 28.39
During the past 6 years, the highestGross Margin % of Nankai Chemical Co was 28.39%. The lowest was 22.98%. And the median was 25.02%.
TSE:4040's Gross Margin % is ranked better than 61.99% of 1560
companies
in the Chemicals industry
Industry Median: 23.36
vs TSE:4040: 28.39
Nankai Chemical Co had a gross margin of 27.43% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nankai Chemical Co was 4.20% per year.
Nankai Chemical Co (TSE:4040) 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
Nankai Chemical Co had a gross margin of 27.43% 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.
Nankai Chemical Co Gross Margin % Related Terms
Nankai Chemical Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nankai Chemical Co'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 Chemicals subindustry, Nankai Chemical 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.
Nankai Chemical Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nankai Chemical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nankai Chemical 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.
Nankai Chemical Co (TSE:4040) has a Gross Margin % of 27.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nankai Chemical Co and its competitors. This is 10% above median its historical median of 25.02. Over the past decade, Nankai Chemical Co's Gross Margin % has ranged from 22.98 to 28.39. According to the industry distribution chart, Nankai Chemical Co ranks #593 out of 1560 companies in the Chemicals industry, placing it in the top 38%.
Is Nankai Chemical Co's Gross Margin % too high?
Nankai Chemical Co's current Gross Margin % of 27.43% is 10% above median its 10-year median of 25.02. Over the past 10 years, this metric has ranged from a low of 22.98 to a high of 28.39. The Chemicals industry median Gross Margin % is 23.36. Nankai Chemical Co's value of 27.43% is 17.4% above this industry median. Based on the distribution chart, Nankai Chemical Co ranks #593 out of 1560 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nankai Chemical Co has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nankai Chemical Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Nankai Chemical Co ranks #593 out of 1560 companies for Gross Margin %. This puts Nankai Chemical Co in the upper half of its industry. The industry median Gross Margin % is 23.36. Nankai Chemical Co's value of 27.43% is 17.4% above this benchmark. Historically, Nankai Chemical Co's own Gross Margin % has ranged from 22.98 to 28.39 over the past decade. While the company's 10-year median is 25.02 vs. the industry median of 23.36, Nankai Chemical 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 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. Nankai Chemical Co's current Gross Margin % of 27.43% is 17.4% 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 Nankai Chemical Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nankai Chemical Co's current Gross Margin % is 27.43%, which is 10% above median its own 10-year median of 25.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nankai Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Nankai Chemical Co (TSE:4040) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,860.33, compared to a current price of 円3,510.00 — trading 22.7% above its estimated fair value. The current Gross Margin % is 27.43%, which is 10% above median its 10-year median of 25.02 and 17.4% above the Chemicals industry median of 23.36. Nankai Chemical Co's overall GF Score™ is 72/100 with 2 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 Nankai Chemical Co (TSE:4040), the current Gross Margin % is 27.43% 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 Nankai Chemical Co (TSE:4040) Overvalued in 2026?
Based on GuruFocus' analysis, Nankai Chemical Co stock appears to be overvalued.
The current stock price of 円3,510.00 is trading 22.7% above its estimated GF Value™ of 円2,860.33.
GuruFocus considers Nankai Chemical Co to be Modestly Overvalued.
Key valuation signals for TSE:4040:
Gross Margin %: 27.43% (10% above median its 10-year median of 25.02)
GF Value™: 円2,860.33 vs. price of 円3,510.00 (22.7% above fair value)
Industry Position: 17.4% above the Chemicals median (#593 of 1560)
No single metric tells the full story. See the TSE:4040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nankai Chemical Co Ltd is engaged in the manufacturing and sales of chemical products, agricultural products, quasi-drugs and food additives. collecting, transporting, and recycling of industrial wastes.
72GF Score
Get the complete analysis for TSE:4040
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:4040 has been successfully added to your 
