Riken TechnosTSE:4220 +2.73%89 Gross Margin % is 20.37% as of Mar. 2026, which is 12% above its 10-year median of 18.22. GuruFocus rates TSE:4220 with a GF Score™ of 89/100 and a GF Value™ of 円1,346.83 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,555 Chemicals companies, Riken Technos ranks worse than 60.84% on this metric.
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
Riken Technos had a gross margin of 20.37% 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.
Riken Technos Gross Margin % Related Terms
Riken Technos Gross Margin % Historical Data
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The historical data trend for Riken Technos'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, Riken Technos'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.
Riken Technos Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Riken Technos's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Riken Technos'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.
Riken Technos (TSE:4220) has a Gross Margin % of 20.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Riken Technos and its competitors. This is 12% above median its historical median of 18.22. Over the past decade, Riken Technos' Gross Margin % has ranged from 16.48 to 19.68. According to the industry distribution chart, Riken Technos ranks #946 out of 1555 companies in the Chemicals industry, placing it in the top 60.8%.
Is Riken Technos' Gross Margin % too high?
Riken Technos' current Gross Margin % of 20.37% is 12% above median its 10-year median of 18.22. Over the past 10 years, this metric has ranged from a low of 16.48 to a high of 19.68. The Chemicals industry median Gross Margin % is 23.44. Riken Technos' value of 20.37% is 13.1% below this industry median. Based on the distribution chart, Riken Technos ranks #946 out of 1555 companies in the Chemicals industry, which is below the industry midpoint. Overall, Riken Technos has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Riken Technos' Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Riken Technos ranks #946 out of 1555 companies for Gross Margin %. This places Riken Technos in the lower half of its industry. The industry median Gross Margin % is 23.44. Riken Technos' value of 20.37% is 13.1% below this benchmark. Historically, Riken Technos' own Gross Margin % has ranged from 16.48 to 19.68 over the past decade. While the company's 10-year median is 18.22 vs. the industry median of 23.44, Riken Technos 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 23.44, based on 1,555 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. Riken Technos's current Gross Margin % of 20.37% is 13.1% 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 Riken Technos and its competitors. For the Chemicals industry, the median Gross Margin % is 23.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riken Technos's current Gross Margin % is 20.37%, which is 12% above median its own 10-year median of 18.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riken Technos stock overvalued right now?
Based on GuruFocus' analysis, Riken Technos (TSE:4220) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,346.83, compared to a current price of 円1,804.00 — trading 33.9% above its estimated fair value. The current Gross Margin % is 20.37%, which is 12% above median its 10-year median of 18.22 and 13.1% below the Chemicals industry median of 23.44. Riken Technos' overall GF Score™ is 89/100 with 3 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 Riken Technos (TSE:4220), the current Gross Margin % is 20.37% 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 Riken Technos (TSE:4220) Overvalued in 2026?
Based on GuruFocus' analysis, Riken Technos stock appears to be overvalued.
The current stock price of 円1,804.00 is trading 33.9% above its estimated GF Value™ of 円1,346.83.
GuruFocus considers Riken Technos to be Modestly Overvalued.
Key valuation signals for TSE:4220:
Gross Margin %: 20.37% (12% above median its 10-year median of 18.22)
GF Value™: 円1,346.83 vs. price of 円1,804.00 (33.9% above fair value)
Industry Position: 13.1% below the Chemicals median (#946 of 1555)
No single metric tells the full story. See the TSE:4220 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Riken Technos Corp engages in the production and sale of synthetic resin products. Its operations are carried out through the following businesses: Compound, Film, Food Wrapping, and Others. The compound unit deals with synthetic resin mixtures in the form of pellets as primary materials for plastic molded products. The Film business handles synthetic resin processed into films. The Food Wrapping business manages thin synthetic resin films for food packaging use.
89GF Score
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