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Kawakami Paint Manufacturing Co (TSE:4616) 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
Kawakami Paint Manufacturing Co had a gross margin of 21.41% 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.
Kawakami Paint Manufacturing Co Gross Margin % Related Terms
Kawakami Paint Manufacturing 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.
Kawakami Paint Manufacturing Co Gross Margin % Chart
TSE:4616 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Kawakami Paint Manufacturing 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.
Kawakami Paint Manufacturing Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kawakami Paint Manufacturing Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kawakami Paint Manufacturing 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.
Kawakami Paint Manufacturing Co (TSE:4616) has a Gross Margin % of 21.41% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kawakami Paint Manufacturing Co and its competitors. This is 12% above median its historical median of 19.19. Over the past decade, Kawakami Paint Manufacturing Co's Gross Margin % has ranged from 16.46 to 20.47. According to the industry distribution chart, Kawakami Paint Manufacturing Co ranks #1043 out of 1557 companies in the Chemicals industry, placing it in the top 67%.
Is Kawakami Paint Manufacturing Co's Gross Margin % too high?
Kawakami Paint Manufacturing Co's current Gross Margin % of 21.41% is 12% above median its 10-year median of 19.19. Over the past 10 years, this metric has ranged from a low of 16.46 to a high of 20.47. The Chemicals industry median Gross Margin % is 23.49. Kawakami Paint Manufacturing Co's value of 21.41% is 8.9% below this industry median. Based on the distribution chart, Kawakami Paint Manufacturing Co ranks #1043 out of 1557 companies in the Chemicals industry, which is below the industry midpoint. Overall, Kawakami Paint Manufacturing Co has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawakami Paint Manufacturing Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Kawakami Paint Manufacturing Co ranks #1043 out of 1557 companies for Gross Margin %. This places Kawakami Paint Manufacturing Co in the lower half of its industry. The industry median Gross Margin % is 23.49. Kawakami Paint Manufacturing Co's value of 21.41% is 8.9% below this benchmark. Historically, Kawakami Paint Manufacturing Co's own Gross Margin % has ranged from 16.46 to 20.47 over the past decade. While the company's 10-year median is 19.19 vs. the industry median of 23.49, Kawakami Paint Manufacturing 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 23.49, based on 1,557 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. Kawakami Paint Manufacturing Co's current Gross Margin % of 21.41% is 8.9% 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 Kawakami Paint Manufacturing Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawakami Paint Manufacturing Co's current Gross Margin % is 21.41%, which is 12% above median its own 10-year median of 19.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawakami Paint Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Kawakami Paint Manufacturing Co (TSE:4616) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,658.84, compared to a current price of 円1,987.00 — trading 19.8% above its estimated fair value. The current Gross Margin % is 21.41%, which is 12% above median its 10-year median of 19.19 and 8.9% below the Chemicals industry median of 23.49. Kawakami Paint Manufacturing Co's overall GF Score™ is 64/100 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 Kawakami Paint Manufacturing Co (TSE:4616), the current Gross Margin % is 21.41% 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 Kawakami Paint Manufacturing Co (TSE:4616) Overvalued in 2026?
Based on GuruFocus' analysis, Kawakami Paint Manufacturing Co stock appears to be overvalued.
The current stock price of 円1,987.00 is trading 19.8% above its estimated GF Value™ of 円1,658.84.
GuruFocus considers Kawakami Paint Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSE:4616:
Gross Margin %: 21.41% (12% above median its 10-year median of 19.19)
GF Value™: 円1,658.84 vs. price of 円1,987.00 (19.8% above fair value)
Industry Position: 8.9% below the Chemicals median (#1043 of 1557)
No single metric tells the full story. See the TSE:4616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawakami Paint Manufacturing Co Business Description
Kawakami Paint Manufacturing Co Ltd is engaged in manufacturing and selling various paints in Japan. Its products include heat insulation paints, ultra-low temperature powder, and water-based paints; and general purpose building paints, as well as floor coatings, building interior and exterior paints, aqueous paint, and rustproof paint.
64GF Score
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