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Kawaguchi Chemical Industry Co (TSE:4361) 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
Kawaguchi Chemical Industry Co had a gross margin of 20.92% for the quarter that ended in May. 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.
Kawaguchi Chemical Industry Co Gross Margin % Related Terms
Kawaguchi Chemical Industry 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.
Kawaguchi Chemical Industry Co Gross Margin % Chart
TSE:4361 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Kawaguchi Chemical Industry 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.
Kawaguchi Chemical Industry Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kawaguchi Chemical Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kawaguchi Chemical Industry 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.
Kawaguchi Chemical Industry Co (TSE:4361) has a Gross Margin % of 20.92% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kawaguchi Chemical Industry Co and its competitors. This is 18% above median its historical median of 17.74. Over the past decade, Kawaguchi Chemical Industry Co's Gross Margin % has ranged from 14.93 to 19.79. According to the industry distribution chart, Kawaguchi Chemical Industry Co ranks #943 out of 1559 companies in the Chemicals industry, placing it in the top 60.5%.
Is Kawaguchi Chemical Industry Co's Gross Margin % too high?
Kawaguchi Chemical Industry Co's current Gross Margin % of 20.92% is 18% above median its 10-year median of 17.74. Over the past 10 years, this metric has ranged from a low of 14.93 to a high of 19.79. The Chemicals industry median Gross Margin % is 23.52. Kawaguchi Chemical Industry Co's value of 20.92% is 11.1% below this industry median. Based on the distribution chart, Kawaguchi Chemical Industry Co ranks #943 out of 1559 companies in the Chemicals industry, which is below the industry midpoint. Overall, Kawaguchi Chemical Industry Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kawaguchi Chemical Industry Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Kawaguchi Chemical Industry Co ranks #943 out of 1559 companies for Gross Margin %. This places Kawaguchi Chemical Industry Co in the lower half of its industry. The industry median Gross Margin % is 23.52. Kawaguchi Chemical Industry Co's value of 20.92% is 11.1% below this benchmark. Historically, Kawaguchi Chemical Industry Co's own Gross Margin % has ranged from 14.93 to 19.79 over the past decade. While the company's 10-year median is 17.74 vs. the industry median of 23.52, Kawaguchi Chemical Industry 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. Kawaguchi Chemical Industry Co's current Gross Margin % of 20.92% is 11.1% 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 Kawaguchi Chemical Industry 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. Kawaguchi Chemical Industry Co's current Gross Margin % is 20.92%, which is 18% above median its own 10-year median of 17.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawaguchi Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Kawaguchi Chemical Industry Co (TSE:4361) is currently considered Fairly Valued. The stock's GF Value™ is 円1,431.00, compared to a current price of 円1,524.00 — trading 6.5% above its estimated fair value. The current Gross Margin % is 20.92%, which is 18% above median its 10-year median of 17.74 and 11.1% below the Chemicals industry median of 23.52. Kawaguchi Chemical Industry Co's overall GF Score™ is 75/100 with 6 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 Kawaguchi Chemical Industry Co (TSE:4361), the current Gross Margin % is 20.92% as of May. 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 Kawaguchi Chemical Industry Co (TSE:4361) Overvalued in 2026?
Based on GuruFocus' analysis, Kawaguchi Chemical Industry Co stock appears to be overvalued.
The current stock price of 円1,524.00 is trading 6.5% above its estimated GF Value™ of 円1,431.00.
GuruFocus considers Kawaguchi Chemical Industry Co to be Fairly Valued.
Key valuation signals for TSE:4361:
Gross Margin %: 20.92% (18% above median its 10-year median of 17.74)
GF Value™: 円1,431.00 vs. price of 円1,524.00 (6.5% above fair value)
Industry Position: 11.1% below the Chemicals median (#943 of 1559)
No single metric tells the full story. See the TSE:4361 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawaguchi Chemical Industry Co Business Description
Kawaguchi Chemical Industry Co Ltd is the Japanese manufacturer of organic-rubber chemical products. The company's product offering includes organic rubber chemicals, resin chemicals, pharmaceutical intermediates, agricultural chemical intermediates, pigment intermediates, pharmaceutical agents for the environment, photographic chemicals and lubricant additives.
75GF Score
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