Osaka Organic Chemical Industry (TSE:4187) 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
Osaka Organic Chemical Industry had a gross margin of 31.68% for the quarter that ended in Nov. 2025 => 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.
Osaka Organic Chemical Industry Gross Margin % Related Terms
Osaka Organic Chemical Industry 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.
Osaka Organic Chemical Industry Gross Margin % Chart
TSE:4187 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Osaka Organic Chemical Industry'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.
Osaka Organic Chemical Industry Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Osaka Organic Chemical Industry's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Osaka Organic Chemical Industry'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.
Osaka Organic Chemical Industry (TSE:4187) has a Gross Margin % of 31.68% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Osaka Organic Chemical Industry and its competitors. This is 12% above median its historical median of 28.40. Over the past decade, Osaka Organic Chemical Industry's Gross Margin % has ranged from 26.46 to 32.65. According to the industry distribution chart, Osaka Organic Chemical Industry ranks #446 out of 1560 companies in the Chemicals industry, placing it in the top 28.6%.
Is Osaka Organic Chemical Industry's Gross Margin % too high?
Osaka Organic Chemical Industry's current Gross Margin % of 31.68% is 12% above median its 10-year median of 28.40. Over the past 10 years, this metric has ranged from a low of 26.46 to a high of 32.65. The Chemicals industry median Gross Margin % is 23.36. Osaka Organic Chemical Industry's value of 31.68% is 35.6% above this industry median. Based on the distribution chart, Osaka Organic Chemical Industry ranks #446 out of 1560 companies in the Chemicals industry, which is above the industry midpoint. Overall, Osaka Organic Chemical Industry has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Osaka Organic Chemical Industry's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Osaka Organic Chemical Industry ranks #446 out of 1560 companies for Gross Margin %. This puts Osaka Organic Chemical Industry in the upper half of its industry. The industry median Gross Margin % is 23.36. Osaka Organic Chemical Industry's value of 31.68% is 35.6% above this benchmark. Historically, Osaka Organic Chemical Industry's own Gross Margin % has ranged from 26.46 to 32.65 over the past decade. While the company's 10-year median is 28.40 vs. the industry median of 23.36, Osaka Organic Chemical Industry 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. Osaka Organic Chemical Industry's current Gross Margin % of 31.68% is 35.6% 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 Osaka Organic Chemical Industry 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. Osaka Organic Chemical Industry's current Gross Margin % is 31.68%, which is 12% above median its own 10-year median of 28.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Osaka Organic Chemical Industry stock overvalued right now?
Based on GuruFocus' analysis, Osaka Organic Chemical Industry (TSE:4187) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,509.18, compared to a current price of 円5,880.00 — trading 67.6% above its estimated fair value. The current Gross Margin % is 31.68%, which is 12% above median its 10-year median of 28.40 and 35.6% above the Chemicals industry median of 23.36. Osaka Organic Chemical Industry's overall GF Score™ is 89/100 with 8 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 Osaka Organic Chemical Industry (TSE:4187), the current Gross Margin % is 31.68% as of Nov. 2025. 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 Osaka Organic Chemical Industry (TSE:4187) Overvalued in 2026?
Based on GuruFocus' analysis, Osaka Organic Chemical Industry stock appears to be overvalued.
The current stock price of 円5,880.00 is trading 67.6% above its estimated GF Value™ of 円3,509.18.
GuruFocus considers Osaka Organic Chemical Industry to be Significantly Overvalued.
Key valuation signals for TSE:4187:
Gross Margin %: 31.68% (12% above median its 10-year median of 28.40)
GF Value™: 円3,509.18 vs. price of 円5,880.00 (67.6% above fair value)
Industry Position: 35.6% above the Chemicals median (#446 of 1560)
No single metric tells the full story. See the TSE:4187 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Osaka Organic Chemical Industry Business Description
Osaka Organic Chemical Industry Ltd is engaged in the production and marketing of organic chemistry industry products, organic reagents, petrochemical products, and special polymers, refining and processing of solvents. It operates in three segments: Chemical segment manufactures and sells speciality acrylic acid ester and acrylic acid for paints, adhesives and inks. The Electronic Materials segment manufactures and sells electronic materials, such as liquid crystal materials and semiconductors. The Specialty Chemicals segment manufactures and sells cosmetics raw materials and functional materials.
89GF Score
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