Nippon HumeTSE:5262 -0.94%74 Gross Margin % is 17.97% as of Mar. 2026, which is 4% above its 10-year median of 17.25. GuruFocus rates TSE:5262 with a GF Score™ of 74/100 and a GF Value™ of 円762.94 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,718 Construction companies, Nippon Hume ranks worse than 51.4% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Nippon Hume's Gross Profit for the
three
months ended in Mar. 2026 was 円2,274 Mil. Nippon Hume's Revenue for the
three
months ended in Mar. 2026 was 円12,650 Mil. Therefore, Nippon Hume's Gross Margin % for the quarter that ended in Mar. 2026 was 17.97%.
The historical rank and industry rank for Nippon Hume's Gross Margin % or its related term are showing as below:
TSE:5262'
s Gross Margin % Range Over the Past 10 Years
Min: 15.24 Med: 17.25 Max: 20.05
Current: 20.05
During the past 13 years, the highestGross Margin % of Nippon Hume was 20.05%. The lowest was 15.24%. And the median was 17.25%.
TSE:5262's Gross Margin % is ranked worse than 51.4% of 1718
companies
in the Construction industry
Industry Median: 20.72
vs TSE:5262: 20.05
Nippon Hume had a gross margin of 17.97% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nippon Hume was 1.90% per year.
Nippon Hume (TSE:5262) 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
Nippon Hume had a gross margin of 17.97% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
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.
Nippon Hume Gross Margin % Related Terms
Nippon Hume Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Hume'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:5262 vs TT, JCI, CARR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Nippon Hume'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.
Nippon Hume Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Nippon Hume's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Hume'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.
Nippon Hume (TSE:5262) has a Gross Margin % of 17.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Hume and its competitors. This is near median its historical median of 17.25. Over the past decade, Nippon Hume's Gross Margin % has ranged from 15.24 to 20.05. According to the industry distribution chart, Nippon Hume ranks #883 out of 1718 companies in the Construction industry, placing it in the top 51.4%.
Is Nippon Hume's Gross Margin % too high?
Nippon Hume's current Gross Margin % of 17.97% is near median its 10-year median of 17.25. Over the past 10 years, this metric has ranged from a low of 15.24 to a high of 20.05. The Construction industry median Gross Margin % is 20.72. Nippon Hume's value of 17.97% is 13.3% below this industry median. Based on the distribution chart, Nippon Hume ranks #883 out of 1718 companies in the Construction industry, which is below the industry midpoint. Overall, Nippon Hume has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hume's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Nippon Hume ranks #883 out of 1718 companies for Gross Margin %. This places Nippon Hume in the lower half of its industry. The industry median Gross Margin % is 20.72. Nippon Hume's value of 17.97% is 13.3% below this benchmark. Historically, Nippon Hume's own Gross Margin % has ranged from 15.24 to 20.05 over the past decade. While the company's 10-year median is 17.25 vs. the industry median of 20.72, Nippon Hume 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 Construction company?
The median Gross Margin % among Construction companies is 20.72, based on 1,718 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. Nippon Hume's current Gross Margin % of 17.97% is 13.3% 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 Nippon Hume and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Hume's current Gross Margin % is 17.97%, which is near median its own 10-year median of 17.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hume stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hume (TSE:5262) is currently considered Significantly Overvalued. The stock's GF Value™ is 円762.94, compared to a current price of 円1,057.00 — trading 38.5% above its estimated fair value. The current Gross Margin % is 17.97%, which is near median its 10-year median of 17.25 and 13.3% below the Construction industry median of 20.72. Nippon Hume's overall GF Score™ is 74/100 with 1 warning sign 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 Nippon Hume (TSE:5262), the current Gross Margin % is 17.97% 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 Nippon Hume (TSE:5262) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Hume stock appears to be overvalued.
The current stock price of 円1,057.00 is trading 38.5% above its estimated GF Value™ of 円762.94.
GuruFocus considers Nippon Hume to be Significantly Overvalued.
Key valuation signals for TSE:5262:
Gross Margin %: 17.97% (near median its 10-year median of 17.25)
GF Value™: 円762.94 vs. price of 円1,057.00 (38.5% above fair value)
Industry Position: 13.3% below the Construction median (#883 of 1718)
No single metric tells the full story. See the TSE:5262 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Hume Corp provides one-stop service in the design, manufacture and installation of precast concrete products. The company's three reportable segments include Foundations, Sewerage-related, and Solar Power Generation and Real Estate. In Foundations, concrete piles are manufactured and sold, and pile driving work is carried out. In the Sewerage related segment, Hume pipes, segments and other products are manufactured and sold, and pipe and drain rehabilitation projects are carried out. In Solar Power Generation and Real Estate, real estate is rented, managed and developed, and equipment related to solar power and the environment is sold and maintenance is provided for it.
74GF Score
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