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Dainichiseika Color & Chemicals Mfg Co (TSE:4116) 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
Dainichiseika Color & Chemicals Mfg Co had a gross margin of 19.55% 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.
Dainichiseika Color & Chemicals Mfg Co Gross Margin % Related Terms
Dainichiseika Color & Chemicals Mfg 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.
Dainichiseika Color & Chemicals Mfg Co Gross Margin % Chart
Dainichiseika Color & Chemicals Mfg Co Annual Data
TSE:4116 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Dainichiseika Color & Chemicals Mfg 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.
Dainichiseika Color & Chemicals Mfg Co Gross Margin % vs Chemicals Industry
* 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.
Dainichiseika Color & Chemicals Mfg Co (TSE:4116) has a Gross Margin % of 19.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dainichiseika Color & Chemicals Mfg Co and its competitors. This is near median its historical median of 18.69. Over the past decade, Dainichiseika Color & Chemicals Mfg Co's Gross Margin % has ranged from 15.33 to 21.05. According to the industry distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #894 out of 1559 companies in the Chemicals industry, placing it in the top 57.3%.
Is Dainichiseika Color & Chemicals Mfg Co's Gross Margin % too high?
Dainichiseika Color & Chemicals Mfg Co's current Gross Margin % of 19.55% is near median its 10-year median of 18.69. Over the past 10 years, this metric has ranged from a low of 15.33 to a high of 21.05. The Chemicals industry median Gross Margin % is 23.52. Dainichiseika Color & Chemicals Mfg Co's value of 19.55% is 16.9% below this industry median. Based on the distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #894 out of 1559 companies in the Chemicals industry, which is below the industry midpoint. Overall, Dainichiseika Color & Chemicals Mfg Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dainichiseika Color & Chemicals Mfg Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #894 out of 1559 companies for Gross Margin %. This places Dainichiseika Color & Chemicals Mfg Co in the lower half of its industry. The industry median Gross Margin % is 23.52. Dainichiseika Color & Chemicals Mfg Co's value of 19.55% is 16.9% below this benchmark. Historically, Dainichiseika Color & Chemicals Mfg Co's own Gross Margin % has ranged from 15.33 to 21.05 over the past decade. While the company's 10-year median is 18.69 vs. the industry median of 23.52, Dainichiseika Color & Chemicals Mfg 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 23.52, based on 1,559 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. Dainichiseika Color & Chemicals Mfg Co's current Gross Margin % of 19.55% is 16.9% 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 Dainichiseika Color & Chemicals Mfg Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dainichiseika Color & Chemicals Mfg Co's current Gross Margin % is 19.55%, which is near median its own 10-year median of 18.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dainichiseika Color & Chemicals Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Dainichiseika Color & Chemicals Mfg Co (TSE:4116) is currently considered Significantly Overvalued. The stock's GF Value™ is 円781.82, compared to a current price of 円1,089.00 — trading 39.3% above its estimated fair value. The current Gross Margin % is 19.55%, which is near median its 10-year median of 18.69 and 16.9% below the Chemicals industry median of 23.52. Dainichiseika Color & Chemicals Mfg Co's overall GF Score™ is 67/100 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 Dainichiseika Color & Chemicals Mfg Co (TSE:4116), the current Gross Margin % is 19.55% 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 Dainichiseika Color & Chemicals Mfg Co (TSE:4116) Overvalued in 2026?
Based on GuruFocus' analysis, Dainichiseika Color & Chemicals Mfg Co stock appears to be overvalued.
The current stock price of 円1,089.00 is trading 39.3% above its estimated GF Value™ of 円781.82.
GuruFocus considers Dainichiseika Color & Chemicals Mfg Co to be Significantly Overvalued.
Key valuation signals for TSE:4116:
Gross Margin %: 19.55% (near median its 10-year median of 18.69)
GF Value™: 円781.82 vs. price of 円1,089.00 (39.3% above fair value)
Industry Position: 16.9% below the Chemicals median (#894 of 1559)
No single metric tells the full story. See the TSE:4116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dainichiseika Color & Chemicals Mfg Co Business Description
Dainichiseika Color & Chemicals Mfg Co Ltd manufactures and sells pigments, plastics, and inks in five segments based on product type. The polymers segment, which generates the majority of revenue, sells plastic resins used to produce interior components for automobiles, polyurethane coatings and adhesives, and textile coatings. The pigments segment sells inorganic pigments and colorants. The prepared colors and chemicals segment sells colorants used in plastics and coatings. The printing inks segment sells inks for printing and gravure. The other segment leases real estate properties.
67GF Score
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