New Japan Chemical CoTSE:4406 +0.50%61 Gross Margin % is 16.07% as of Mar. 2026, which is 4% below its 10-year median of 16.81. GuruFocus rates TSE:4406 with a GF Score™ of 61/100 and a GF Value™ of 円199.66 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,556 Chemicals companies, New Japan Chemical Co ranks worse than 68.25% on this metric.
TSE:4406's Gross Margin % is ranked worse than 68.25% of 1556
companies
in the Chemicals industry
Industry Median: 23.465
vs TSE:4406: 16.59
New Japan Chemical Co had a gross margin of 16.07% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for New Japan Chemical Co was -1.90% per year.
New Japan Chemical Co (TSE:4406) 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
New Japan Chemical Co had a gross margin of 16.07% 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.
New Japan Chemical Co Gross Margin % Related Terms
New Japan Chemical Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for New Japan Chemical 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.
TSE:4406 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, New Japan Chemical 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.
New Japan Chemical Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, New Japan Chemical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where New Japan Chemical 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.
New Japan Chemical Co (TSE:4406) has a Gross Margin % of 16.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on New Japan Chemical Co and its competitors. This is near median its historical median of 16.81. Over the past decade, New Japan Chemical Co's Gross Margin % has ranged from 13.35 to 18.65. According to the industry distribution chart, New Japan Chemical Co ranks #1062 out of 1556 companies in the Chemicals industry, placing it in the top 68.3%.
Is New Japan Chemical Co's Gross Margin % too high?
New Japan Chemical Co's current Gross Margin % of 16.07% is near median its 10-year median of 16.81. Over the past 10 years, this metric has ranged from a low of 13.35 to a high of 18.65. The Chemicals industry median Gross Margin % is 23.47. New Japan Chemical Co's value of 16.07% is 31.5% below this industry median. Based on the distribution chart, New Japan Chemical Co ranks #1062 out of 1556 companies in the Chemicals industry, which is below the industry midpoint. Overall, New Japan Chemical Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does New Japan Chemical Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, New Japan Chemical Co ranks #1062 out of 1556 companies for Gross Margin %. This places New Japan Chemical Co in the lower half of its industry. The industry median Gross Margin % is 23.47. New Japan Chemical Co's value of 16.07% is 31.5% below this benchmark. Historically, New Japan Chemical Co's own Gross Margin % has ranged from 13.35 to 18.65 over the past decade. While the company's 10-year median is 16.81 vs. the industry median of 23.47, New Japan Chemical 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 23.47, based on 1,556 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. New Japan Chemical Co's current Gross Margin % of 16.07% is 31.5% 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 New Japan Chemical Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Japan Chemical Co's current Gross Margin % is 16.07%, which is near median its own 10-year median of 16.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Japan Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, New Japan Chemical Co (TSE:4406) is currently considered Fairly Valued. The stock's GF Value™ is 円199.66, compared to a current price of 円202.00 — trading 1.2% above its estimated fair value. The current Gross Margin % is 16.07%, which is near median its 10-year median of 16.81 and 31.5% below the Chemicals industry median of 23.47. New Japan Chemical Co's overall GF Score™ is 61/100 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 New Japan Chemical Co (TSE:4406), the current Gross Margin % is 16.07% 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 New Japan Chemical Co (TSE:4406) Overvalued in 2026?
Based on GuruFocus' analysis, New Japan Chemical Co stock appears to be overvalued.
The current stock price of 円202.00 is trading 1.2% above its estimated GF Value™ of 円199.66.
GuruFocus considers New Japan Chemical Co to be Fairly Valued.
Key valuation signals for TSE:4406:
Gross Margin %: 16.07% (near median its 10-year median of 16.81)
GF Value™: 円199.66 vs. price of 円202.00 (1.2% above fair value)
Industry Position: 31.5% below the Chemicals median (#1062 of 1556)
No single metric tells the full story. See the TSE:4406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Japan Chemical Co Ltd is a Japan-based company engages in the production and sale of oleo-chemical and chemical products. It offers fatty acids, glycerol, higher alcohols, unsaturated alcohols, surfactants, plasticizers, functional products, and resin additives.
61GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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