Nippon Chemiphar CoTSE:4539 +1.38%59 Gross Margin % is 24.76% as of Mar. 2026, which is 23% below its 10-year median of 32.10. GuruFocus rates TSE:4539 with a GF Score™ of 59/100 and a GF Value™ of 円1,705.64 (Fairly Valued). The stock has 9 warning signs investors should review. Among 943 Drug Manufacturers companies, Nippon Chemiphar Co ranks worse than 86.43% on this metric.
Nippon Chemiphar Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.4%.
The historical rank and industry rank for Nippon Chemiphar Co's Gross Margin % or its related term are showing as below:
TSE:4539'
s Gross Margin % Range Over the Past 10 Years
Min: 25.16 Med: 32.1 Max: 45.5
Current: 25.38
During the past 13 years, the highestGross Margin % of Nippon Chemiphar Co was 45.50%. The lowest was 25.16%. And the median was 32.10%.
TSE:4539's Gross Margin % is ranked worse than 86.43% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs TSE:4539: 25.38
Nippon Chemiphar Co had a gross margin of 24.76% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nippon Chemiphar Co was -5.40% per year.
Nippon Chemiphar Co (TSE:4539) 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
Nippon Chemiphar Co had a gross margin of 24.76% 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.
Nippon Chemiphar Co Gross Margin % Related Terms
Nippon Chemiphar Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Chemiphar 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Nippon Chemiphar 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.
Nippon Chemiphar Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Nippon Chemiphar Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Chemiphar 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.
Nippon Chemiphar Co (TSE:4539) has a Gross Margin % of 24.76% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Chemiphar Co and its competitors. This is 23% below median its historical median of 32.10. Over the past decade, Nippon Chemiphar Co's Gross Margin % has ranged from 25.16 to 45.50. According to the industry distribution chart, Nippon Chemiphar Co ranks #815 out of 943 companies in the Drug Manufacturers industry, placing it in the top 86.4%.
Is Nippon Chemiphar Co's Gross Margin % too high?
Nippon Chemiphar Co's current Gross Margin % of 24.76% is 23% below median its 10-year median of 32.10. Over the past 10 years, this metric has ranged from a low of 25.16 to a high of 45.50. The Drug Manufacturers industry median Gross Margin % is 48.54. Nippon Chemiphar Co's value of 24.76% is 49% below this industry median. Based on the distribution chart, Nippon Chemiphar Co ranks #815 out of 943 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Nippon Chemiphar Co has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Chemiphar Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Nippon Chemiphar Co ranks #815 out of 943 companies for Gross Margin %. This places Nippon Chemiphar Co in the lower half of its industry. The industry median Gross Margin % is 48.54. Nippon Chemiphar Co's value of 24.76% is 49% below this benchmark. Historically, Nippon Chemiphar Co's own Gross Margin % has ranged from 25.16 to 45.50 over the past decade. While the company's 10-year median is 32.10 vs. the industry median of 48.54, Nippon Chemiphar 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 943 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. Nippon Chemiphar Co's current Gross Margin % of 24.76% is 49% 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 Nippon Chemiphar Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Chemiphar Co's current Gross Margin % is 24.76%, which is 23% below median its own 10-year median of 32.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Chemiphar Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Chemiphar Co (TSE:4539) is currently considered Fairly Valued. The stock's GF Value™ is 円1,705.64, compared to a current price of 円1,692.00 — trading 0.8% below its estimated fair value. The current Gross Margin % is 24.76%, which is 23% below median its 10-year median of 32.10 and 49% below the Drug Manufacturers industry median of 48.54. Nippon Chemiphar Co's overall GF Score™ is 59/100 with 9 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 Nippon Chemiphar Co (TSE:4539), the current Gross Margin % is 24.76% 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 Nippon Chemiphar Co (TSE:4539) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Chemiphar Co stock appears to be undervalued.
The current stock price of 円1,692.00 is trading 0.8% below its estimated GF Value™ of 円1,705.64.
GuruFocus considers Nippon Chemiphar Co to be Fairly Valued.
Key valuation signals for TSE:4539:
Gross Margin %: 24.76% (23% below median its 10-year median of 32.10)
GF Value™: 円1,705.64 vs. price of 円1,692.00 (0.8% below fair value)
Industry Position: 49% below the Drug Manufacturers median (#815 of 943)
No single metric tells the full story. See the TSE:4539 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Chemiphar Co Ltd produces and sells medicines for medical use. The company also produces medical, health and cosmetics products. Nippon Chemiphar sterilizes medical instruments for hospitals and operates nursing home for elderly.
59GF Score
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