Nippon Shokubai CoTSE:4114 +1.49%77 Gross Margin % is 17.69% as of Mar. 2026, which is 7% below its 10-year median of 18.94. GuruFocus rates TSE:4114 with a GF Score™ of 77/100 and a GF Value™ of 円1,759.98 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,560 Chemicals companies, Nippon Shokubai Co ranks worse than 62.69% on this metric.
Nippon Shokubai Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for Nippon Shokubai Co's Gross Margin % or its related term are showing as below:
TSE:4114'
s Gross Margin % Range Over the Past 10 Years
Min: 17.21 Med: 18.94 Max: 21.52
Current: 18.71
During the past 13 years, the highestGross Margin % of Nippon Shokubai Co was 21.52%. The lowest was 17.21%. And the median was 18.94%.
TSE:4114's Gross Margin % is ranked worse than 62.69% of 1560
companies
in the Chemicals industry
Industry Median: 23.36
vs TSE:4114: 18.71
Nippon Shokubai Co had a gross margin of 17.69% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nippon Shokubai Co was -1.10% per year.
Nippon Shokubai Co (TSE:4114) 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 Shokubai Co had a gross margin of 17.69% 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 Shokubai Co Gross Margin % Related Terms
Nippon Shokubai Co Gross Margin % Historical Data
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The historical data trend for Nippon Shokubai 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, Nippon Shokubai 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 Shokubai Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Shokubai Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Shokubai 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 Shokubai Co (TSE:4114) has a Gross Margin % of 17.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Shokubai Co and its competitors. This is near median its historical median of 18.94. Over the past decade, Nippon Shokubai Co's Gross Margin % has ranged from 17.21 to 21.52. According to the industry distribution chart, Nippon Shokubai Co ranks #978 out of 1560 companies in the Chemicals industry, placing it in the top 62.7%.
Is Nippon Shokubai Co's Gross Margin % too high?
Nippon Shokubai Co's current Gross Margin % of 17.69% is near median its 10-year median of 18.94. Over the past 10 years, this metric has ranged from a low of 17.21 to a high of 21.52. The Chemicals industry median Gross Margin % is 23.36. Nippon Shokubai Co's value of 17.69% is 24.3% below this industry median. Based on the distribution chart, Nippon Shokubai Co ranks #978 out of 1560 companies in the Chemicals industry, which is below the industry midpoint. Overall, Nippon Shokubai Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shokubai Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Nippon Shokubai Co ranks #978 out of 1560 companies for Gross Margin %. This places Nippon Shokubai Co in the lower half of its industry. The industry median Gross Margin % is 23.36. Nippon Shokubai Co's value of 17.69% is 24.3% below this benchmark. Historically, Nippon Shokubai Co's own Gross Margin % has ranged from 17.21 to 21.52 over the past decade. While the company's 10-year median is 18.94 vs. the industry median of 23.36, Nippon Shokubai 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 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. Nippon Shokubai Co's current Gross Margin % of 17.69% is 24.3% 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 Shokubai 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. Nippon Shokubai Co's current Gross Margin % is 17.69%, which is near median its own 10-year median of 18.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shokubai Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shokubai Co (TSE:4114) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,759.98, compared to a current price of 円2,106.50 — trading 19.7% above its estimated fair value. The current Gross Margin % is 17.69%, which is near median its 10-year median of 18.94 and 24.3% below the Chemicals industry median of 23.36. Nippon Shokubai Co's overall GF Score™ is 77/100 with 5 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 Shokubai Co (TSE:4114), the current Gross Margin % is 17.69% 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 Shokubai Co (TSE:4114) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shokubai Co stock appears to be overvalued.
The current stock price of 円2,106.50 is trading 19.7% above its estimated GF Value™ of 円1,759.98.
GuruFocus considers Nippon Shokubai Co to be Modestly Overvalued.
Key valuation signals for TSE:4114:
Gross Margin %: 17.69% (near median its 10-year median of 18.94)
GF Value™: 円1,759.98 vs. price of 円2,106.50 (19.7% above fair value)
Industry Position: 24.3% below the Chemicals median (#978 of 1560)
No single metric tells the full story. See the TSE:4114 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shokubai Co Ltd manufactures and sells a variety of chemicals, catalysts, and chemical-based products. The firm organizes itself into three segments based on product type. The functional chemicals segment, which generates the majority of revenue, sells polymers for concrete mixtures, acrylates used in detergents, and resins for paints and processed adhesive products. The basic chemicals segment sells ethylene oxide and ethylene glycol used in polyester fibers and plastic beverage containers. The environment and catalysts segment sells catalysts used for automotive products and lithium-ion battery production. The majority of revenue comes from Asia.
77GF Score
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