Nitta GelatinTSE:4977 +0.08%76 Gross Margin % is 29.05% as of Mar. 2026, which is 35% above its 10-year median of 21.58. GuruFocus rates TSE:4977 with a GF Score™ of 76/100 and a GF Value™ of 円761.68 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,560 Chemicals companies, Nitta Gelatin ranks better than 62.69% 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
Nitta Gelatin had a gross margin of 29.05% 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.
Nitta Gelatin Gross Margin % Related Terms
Nitta Gelatin Gross Margin % Historical Data
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The historical data trend for Nitta Gelatin'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:4977 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Nitta Gelatin'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.
Nitta Gelatin Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nitta Gelatin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nitta Gelatin'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.
Nitta Gelatin (TSE:4977) has a Gross Margin % of 29.05% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nitta Gelatin and its competitors. This is 35% above median its historical median of 21.58. Over the past decade, Nitta Gelatin's Gross Margin % has ranged from 20.25 to 28.86. According to the industry distribution chart, Nitta Gelatin ranks #582 out of 1560 companies in the Chemicals industry, placing it in the top 37.3%.
Is Nitta Gelatin's Gross Margin % too high?
Nitta Gelatin's current Gross Margin % of 29.05% is 35% above median its 10-year median of 21.58. Over the past 10 years, this metric has ranged from a low of 20.25 to a high of 28.86. The Chemicals industry median Gross Margin % is 23.36. Nitta Gelatin's value of 29.05% is 24.4% above this industry median. Based on the distribution chart, Nitta Gelatin ranks #582 out of 1560 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nitta Gelatin has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nitta Gelatin's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nitta Gelatin ranks #582 out of 1560 companies for Gross Margin %. This puts Nitta Gelatin in the upper half of its industry. The industry median Gross Margin % is 23.36. Nitta Gelatin's value of 29.05% is 24.4% above this benchmark. Historically, Nitta Gelatin's own Gross Margin % has ranged from 20.25 to 28.86 over the past decade. While the company's 10-year median is 21.58 vs. the industry median of 23.36, Nitta Gelatin 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 23.36, based on 1,560 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. Nitta Gelatin's current Gross Margin % of 29.05% is 24.4% 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 Nitta Gelatin and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nitta Gelatin's current Gross Margin % is 29.05%, which is 35% above median its own 10-year median of 21.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nitta Gelatin stock overvalued right now?
Based on GuruFocus' analysis, Nitta Gelatin (TSE:4977) is currently considered Significantly Overvalued. The stock's GF Value™ is 円761.68, compared to a current price of 円1,324.00 — trading 73.8% above its estimated fair value. The current Gross Margin % is 29.05%, which is 35% above median its 10-year median of 21.58 and 24.4% above the Chemicals industry median of 23.36. Nitta Gelatin's overall GF Score™ is 76/100 with 3 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 Nitta Gelatin (TSE:4977), the current Gross Margin % is 29.05% 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 Nitta Gelatin (TSE:4977) Overvalued in 2026?
Based on GuruFocus' analysis, Nitta Gelatin stock appears to be overvalued.
The current stock price of 円1,324.00 is trading 73.8% above its estimated GF Value™ of 円761.68.
GuruFocus considers Nitta Gelatin to be Significantly Overvalued.
Key valuation signals for TSE:4977:
Gross Margin %: 29.05% (35% above median its 10-year median of 21.58)
GF Value™: 円761.68 vs. price of 円1,324.00 (73.8% above fair value)
Industry Position: 24.4% above the Chemicals median (#582 of 1560)
No single metric tells the full story. See the TSE:4977 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nitta Gelatin Inc is a manufacturer of gelatin products. It manufactures and sells gelatin, collagen peptides, collagen casing, collagen, and other products made from animal bones and skin or fish scales and skin.
76GF Score
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