NozawaTSE:5237 +0.08%57 Gross Margin % is 27.91% as of Mar. 2026, which is 8% below its 10-year median of 30.34. GuruFocus rates TSE:5237 with a GF Score™ of 57/100 and a GF Value™ of 円866.00 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,721 Construction companies, Nozawa ranks better than 65.19% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Nozawa's Gross Profit for the
six
months ended in Mar. 2026 was 円2,998 Mil. Nozawa's Revenue for the
six
months ended in Mar. 2026 was 円10,741 Mil. Therefore, Nozawa's Gross Margin % for the quarter that ended in Mar. 2026 was 27.91%.
Warning Sign:
Nozawa Corp gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for Nozawa's Gross Margin % or its related term are showing as below:
TSE:5237'
s Gross Margin % Range Over the Past 10 Years
Min: 27.34 Med: 30.34 Max: 35.23
Current: 28.29
During the past 13 years, the highestGross Margin % of Nozawa was 35.23%. The lowest was 27.34%. And the median was 30.34%.
TSE:5237's Gross Margin % is ranked better than 65.19% of 1721
companies
in the Construction industry
Industry Median: 20.73
vs TSE:5237: 28.29
Nozawa had a gross margin of 27.91% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nozawa was -2.50% per year.
Nozawa (TSE:5237) 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
Nozawa had a gross margin of 27.91% 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.
Nozawa Gross Margin % Related Terms
Nozawa Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nozawa'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:5237 vs TT, JCI, CARR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Nozawa'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.
Nozawa Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Nozawa's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nozawa'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.
Nozawa (TSE:5237) has a Gross Margin % of 27.91% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nozawa and its competitors. This is near median its historical median of 30.34. Over the past decade, Nozawa's Gross Margin % has ranged from 27.34 to 35.23. According to the industry distribution chart, Nozawa ranks #599 out of 1721 companies in the Construction industry, placing it in the top 34.8%.
Is Nozawa's Gross Margin % too high?
Nozawa's current Gross Margin % of 27.91% is near median its 10-year median of 30.34. Over the past 10 years, this metric has ranged from a low of 27.34 to a high of 35.23. The Construction industry median Gross Margin % is 20.73. Nozawa's value of 27.91% is 34.6% above this industry median. Based on the distribution chart, Nozawa ranks #599 out of 1721 companies in the Construction industry, which is above the industry midpoint. Overall, Nozawa has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nozawa's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Nozawa ranks #599 out of 1721 companies for Gross Margin %. This puts Nozawa in the upper half of its industry. The industry median Gross Margin % is 20.73. Nozawa's value of 27.91% is 34.6% above this benchmark. Historically, Nozawa's own Gross Margin % has ranged from 27.34 to 35.23 over the past decade. While the company's 10-year median is 30.34 vs. the industry median of 20.73, Nozawa 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 Construction company?
The median Gross Margin % among Construction companies is 20.73, based on 1,721 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. Nozawa's current Gross Margin % of 27.91% is 34.6% 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 Nozawa and its competitors. For the Construction industry, the median Gross Margin % is 20.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nozawa's current Gross Margin % is 27.91%, which is near median its own 10-year median of 30.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nozawa stock overvalued right now?
Based on GuruFocus' analysis, Nozawa (TSE:5237) is currently considered Significantly Overvalued. The stock's GF Value™ is 円866.00, compared to a current price of 円1,226.00 — trading 41.6% above its estimated fair value. The current Gross Margin % is 27.91%, which is near median its 10-year median of 30.34 and 34.6% above the Construction industry median of 20.73. Nozawa's overall GF Score™ is 57/100 with 7 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 Nozawa (TSE:5237), the current Gross Margin % is 27.91% 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 Nozawa (TSE:5237) Overvalued in 2026?
Based on GuruFocus' analysis, Nozawa stock appears to be overvalued.
The current stock price of 円1,226.00 is trading 41.6% above its estimated GF Value™ of 円866.00.
GuruFocus considers Nozawa to be Significantly Overvalued.
Key valuation signals for TSE:5237:
Gross Margin %: 27.91% (near median its 10-year median of 30.34)
GF Value™: 円866.00 vs. price of 円1,226.00 (41.6% above fair value)
Industry Position: 34.6% above the Construction median (#599 of 1721)
No single metric tells the full story. See the TSE:5237 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nozawa Corp provides extruded cement panels for use in building constructions and for external insulation systems along with other application technologies. The company's products offering includes Alcus, Slate board, COVEX, Cove light, Tunnel Interior Panel, among others.
57GF 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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