Nippon Carbide Industries CoTSE:4064 +0.61%75 Gross Margin % is 32.66% as of Mar. 2026, which is 11% above its 10-year median of 29.31. GuruFocus rates TSE:4064 with a GF Score™ of 75/100 and a GF Value™ of 円2,052.41 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,557 Chemicals companies, Nippon Carbide Industries Co ranks better than 72.06% on this metric.
Nippon Carbide Industries Co (TSE:4064) 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 Carbide Industries Co had a gross margin of 32.66% 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 Carbide Industries Co Gross Margin % Related Terms
Nippon Carbide 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.
TSE:4064 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Nippon Carbide 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 Carbide Industries Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Carbide Industries Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Carbide 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 Carbide Industries Co (TSE:4064) has a Gross Margin % of 32.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Carbide Industries Co and its competitors. This is 11% above median its historical median of 29.31. Over the past decade, Nippon Carbide Industries Co's Gross Margin % has ranged from 27.29 to 33.12. According to the industry distribution chart, Nippon Carbide Industries Co ranks #435 out of 1557 companies in the Chemicals industry, placing it in the top 27.9%.
Is Nippon Carbide Industries Co's Gross Margin % too high?
Nippon Carbide Industries Co's current Gross Margin % of 32.66% is 11% above median its 10-year median of 29.31. Over the past 10 years, this metric has ranged from a low of 27.29 to a high of 33.12. The Chemicals industry median Gross Margin % is 23.49. Nippon Carbide Industries Co's value of 32.66% is 39% above this industry median. Based on the distribution chart, Nippon Carbide Industries Co ranks #435 out of 1557 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Carbide Industries Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Carbide Industries Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nippon Carbide Industries Co ranks #435 out of 1557 companies for Gross Margin %. This puts Nippon Carbide Industries Co in the upper half of its industry. The industry median Gross Margin % is 23.49. Nippon Carbide Industries Co's value of 32.66% is 39% above this benchmark. Historically, Nippon Carbide Industries Co's own Gross Margin % has ranged from 27.29 to 33.12 over the past decade. While the company's 10-year median is 29.31 vs. the industry median of 23.49, Nippon Carbide 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.49, based on 1,557 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 Carbide Industries Co's current Gross Margin % of 32.66% is 39% 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 Carbide Industries Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Carbide Industries Co's current Gross Margin % is 32.66%, which is 11% above median its own 10-year median of 29.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Carbide Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Carbide Industries Co (TSE:4064) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,052.41, compared to a current price of 円3,315.00 — trading 61.5% above its estimated fair value. The current Gross Margin % is 32.66%, which is 11% above median its 10-year median of 29.31 and 39% above the Chemicals industry median of 23.49. Nippon Carbide Industries Co's overall GF Score™ is 75/100 with 1 warning sign 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 Carbide Industries Co (TSE:4064), the current Gross Margin % is 32.66% 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 Carbide Industries Co (TSE:4064) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Carbide Industries Co stock appears to be overvalued.
The current stock price of 円3,315.00 is trading 61.5% above its estimated GF Value™ of 円2,052.41.
GuruFocus considers Nippon Carbide Industries Co to be Significantly Overvalued.
Key valuation signals for TSE:4064:
Gross Margin %: 32.66% (11% above median its 10-year median of 29.31)
GF Value™: 円2,052.41 vs. price of 円3,315.00 (61.5% above fair value)
Industry Position: 39% above the Chemicals median (#435 of 1557)
No single metric tells the full story. See the TSE:4064 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Carbide Industries Co Inc is engaged in the manufacture and sales of chemicals, plastics and resins, plastics films and electronic materials. Its product offerings include calcium carbide, dicyandiamide, cyanamide solution, among others. The company also manufacture and sell adhesive products used in medical, optical, and electronic equipment, coating materials for paper, film, and metal, fiber processing, and pigments.
75GF Score
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