Natoco CoTSE:4627 -0.06%76 Gross Margin % is 23.58% as of Apr. 2026, which is 6% below its 10-year median of 25.11. GuruFocus rates TSE:4627 with a GF Score™ of 76/100 and a GF Value™ of 円1,640.84 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,557 Chemicals companies, Natoco Co ranks worse than 50.35% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Natoco Co's Gross Profit for the
six
months ended in Apr. 2026 was 円2,715 Mil. Natoco Co's Revenue for the
six
months ended in Apr. 2026 was 円11,514 Mil. Therefore, Natoco Co's Gross Margin % for the quarter that ended in Apr. 2026 was 23.58%.
Warning Sign:
Natoco Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.9%.
The historical rank and industry rank for Natoco Co's Gross Margin % or its related term are showing as below:
TSE:4627'
s Gross Margin % Range Over the Past 10 Years
Min: 21.91 Med: 25.11 Max: 26.45
Current: 23.34
During the past 13 years, the highestGross Margin % of Natoco Co was 26.45%. The lowest was 21.91%. And the median was 25.11%.
TSE:4627's Gross Margin % is ranked worse than 50.35% of 1557
companies
in the Chemicals industry
Industry Median: 23.49
vs TSE:4627: 23.34
Natoco Co had a gross margin of 23.58% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Natoco Co was -3.90% per year.
Natoco Co (TSE:4627) 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
Natoco Co had a gross margin of 23.58% for the quarter that ended in Apr. 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.
Natoco Co Gross Margin % Related Terms
Natoco Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Natoco 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:4627 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Natoco 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.
Natoco Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Natoco Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Natoco 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.
Natoco Co (TSE:4627) has a Gross Margin % of 23.58% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Natoco Co and its competitors. This is near median its historical median of 25.11. Over the past decade, Natoco Co's Gross Margin % has ranged from 21.91 to 26.45. According to the industry distribution chart, Natoco Co ranks #784 out of 1557 companies in the Chemicals industry, placing it in the top 50.4%.
Is Natoco Co's Gross Margin % too high?
Natoco Co's current Gross Margin % of 23.58% is near median its 10-year median of 25.11. Over the past 10 years, this metric has ranged from a low of 21.91 to a high of 26.45. The Chemicals industry median Gross Margin % is 23.49. Natoco Co's value of 23.58% is 0.4% above this industry median. Based on the distribution chart, Natoco Co ranks #784 out of 1557 companies in the Chemicals industry, which is below the industry midpoint. Overall, Natoco Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natoco Co's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Natoco Co ranks #784 out of 1557 companies for Gross Margin %. This places Natoco Co in the lower half of its industry. The industry median Gross Margin % is 23.49. Natoco Co's value of 23.58% is 0.4% above this benchmark. Historically, Natoco Co's own Gross Margin % has ranged from 21.91 to 26.45 over the past decade. While the company's 10-year median is 25.11 vs. the industry median of 23.49, Natoco Co has consistently been above 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. Natoco Co's current Gross Margin % of 23.58% is 0.4% above 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 Natoco 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. Natoco Co's current Gross Margin % is 23.58%, which is near median its own 10-year median of 25.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natoco Co stock overvalued right now?
Based on GuruFocus' analysis, Natoco Co (TSE:4627) is currently considered Fairly Valued. The stock's GF Value™ is 円1,640.84, compared to a current price of 円1,754.00 — trading 6.9% above its estimated fair value. The current Gross Margin % is 23.58%, which is near median its 10-year median of 25.11 and 0.4% above the Chemicals industry median of 23.49. Natoco Co's overall GF Score™ is 76/100 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 Natoco Co (TSE:4627), the current Gross Margin % is 23.58% as of Apr. 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 Natoco Co (TSE:4627) Overvalued in 2026?
Based on GuruFocus' analysis, Natoco Co stock appears to be overvalued.
The current stock price of 円1,754.00 is trading 6.9% above its estimated GF Value™ of 円1,640.84.
GuruFocus considers Natoco Co to be Fairly Valued.
Key valuation signals for TSE:4627:
Gross Margin %: 23.58% (near median its 10-year median of 25.11)
GF Value™: 円1,640.84 vs. price of 円1,754.00 (6.9% above fair value)
Industry Position: 0.4% above the Chemicals median (#784 of 1557)
No single metric tells the full story. See the TSE:4627 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natoco Co Ltd is engaged in the business of manufacturing and sales of paints, ink, plastics, and fine chemical products and sales of related products. It also engaged in the collection, transportation, and disposal of industrial waste products. Its other products include such as toning system, general purpose thinner, environment compatible equipment.
76GF 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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