Muromachi ChemicalsTSE:4885 +0.86%76 Gross Margin % is 33.69% as of Nov. 2025, which is 14% above its 10-year median of 29.47. GuruFocus rates TSE:4885 with a GF Score™ of 76/100 and a GF Value™ of 円931.86 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,556 Chemicals companies, Muromachi Chemicals ranks better than 64.78% on this metric.
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
Muromachi Chemicals had a gross margin of 33.69% for the quarter that ended in Nov. 2025 => 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.
Muromachi Chemicals Gross Margin % Related Terms
Muromachi Chemicals Gross Margin % Historical Data
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The historical data trend for Muromachi Chemicals'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 Chemicals subindustry, Muromachi Chemicals'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.
Muromachi Chemicals Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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.
Muromachi Chemicals (TSE:4885) has a Gross Margin % of 33.69% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Muromachi Chemicals and its competitors. This is 14% above median its historical median of 29.47. Over the past decade, Muromachi Chemicals' Gross Margin % has ranged from 27.04 to 33.41. According to the industry distribution chart, Muromachi Chemicals ranks #548 out of 1556 companies in the Chemicals industry, placing it in the top 35.2%.
Is Muromachi Chemicals' Gross Margin % too high?
Muromachi Chemicals' current Gross Margin % of 33.69% is 14% above median its 10-year median of 29.47. Over the past 10 years, this metric has ranged from a low of 27.04 to a high of 33.41. The Chemicals industry median Gross Margin % is 23.47. Muromachi Chemicals' value of 33.69% is 43.6% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #548 out of 1556 companies in the Chemicals industry, which is above the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #548 out of 1556 companies for Gross Margin %. This puts Muromachi Chemicals in the upper half of its industry. The industry median Gross Margin % is 23.47. Muromachi Chemicals' value of 33.69% is 43.6% above this benchmark. Historically, Muromachi Chemicals' own Gross Margin % has ranged from 27.04 to 33.41 over the past decade. While the company's 10-year median is 29.47 vs. the industry median of 23.47, Muromachi Chemicals 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 23.47, 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. Muromachi Chemicals's current Gross Margin % of 33.69% is 43.6% 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 Muromachi Chemicals 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. Muromachi Chemicals's current Gross Margin % is 33.69%, which is 14% above median its own 10-year median of 29.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円931.86, compared to a current price of 円934.00 — trading 0.2% above its estimated fair value. The current Gross Margin % is 33.69%, which is 14% above median its 10-year median of 29.47 and 43.6% above the Chemicals industry median of 23.47. Muromachi Chemicals' overall GF Score™ is 76/100 with 4 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 Muromachi Chemicals (TSE:4885), the current Gross Margin % is 33.69% as of Nov. 2025. 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be overvalued.
The current stock price of 円934.00 is trading 0.2% above its estimated GF Value™ of 円931.86.
GuruFocus considers Muromachi Chemicals to be Fairly Valued.
Key valuation signals for TSE:4885:
Gross Margin %: 33.69% (14% above median its 10-year median of 29.47)
GF Value™: 円931.86 vs. price of 円934.00 (0.2% above fair value)
Industry Position: 43.6% above the Chemicals median (#548 of 1556)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
76GF Score
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