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Nakayama Steel WorksTSE:5408 +0.16%67 Gross Margin % is 13.36% as of Mar. 2026, which is 7% above its 10-year median of 12.53. GuruFocus rates TSE:5408 with a GF Score™ of 67/100 and a GF Value™ of 円623.00 (Fairly Valued). The stock has 3 warning signs investors should review. Among 593 Steel companies, Nakayama Steel Works ranks worse than 50.25% on this metric.
The historical rank and industry rank for Nakayama Steel Works's Gross Margin % or its related term are showing as below:
TSE:5408'
s Gross Margin % Range Over the Past 10 Years
Min: 11.6 Med: 12.53 Max: 13.82
Current: 12.5
During the past 13 years, the highestGross Margin % of Nakayama Steel Works was 13.82%. The lowest was 11.60%. And the median was 12.53%.
TSE:5408's Gross Margin % is ranked worse than 50.25% of 593
companies
in the Steel industry
Industry Median: 12.6
vs TSE:5408: 12.50
Nakayama Steel Works had a gross margin of 13.36% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nakayama Steel Works was 0.80% per year.
Nakayama Steel Works (TSE:5408) 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
Nakayama Steel Works had a gross margin of 13.36% 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.
Nakayama Steel Works Gross Margin % Related Terms
Nakayama Steel Works Gross Margin % Historical Data
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The historical data trend for Nakayama Steel Works'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:5408 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Nakayama Steel Works'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.
Nakayama Steel Works Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Nakayama Steel Works's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nakayama Steel Works'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.
Nakayama Steel Works (TSE:5408) has a Gross Margin % of 13.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nakayama Steel Works and its competitors. This is near median its historical median of 12.53. Over the past decade, Nakayama Steel Works' Gross Margin % has ranged from 11.60 to 13.82. According to the industry distribution chart, Nakayama Steel Works ranks #298 out of 593 companies in the Steel industry, placing it in the top 50.3%.
Is Nakayama Steel Works' Gross Margin % too high?
Nakayama Steel Works' current Gross Margin % of 13.36% is near median its 10-year median of 12.53. Over the past 10 years, this metric has ranged from a low of 11.60 to a high of 13.82. The Steel industry median Gross Margin % is 12.60. Nakayama Steel Works' value of 13.36% is 6% above this industry median. Based on the distribution chart, Nakayama Steel Works ranks #298 out of 593 companies in the Steel industry, which is below the industry midpoint. Overall, Nakayama Steel Works has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nakayama Steel Works' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Nakayama Steel Works ranks #298 out of 593 companies for Gross Margin %. This places Nakayama Steel Works in the lower half of its industry. The industry median Gross Margin % is 12.60. Nakayama Steel Works' value of 13.36% is 6% above this benchmark. Historically, Nakayama Steel Works' own Gross Margin % has ranged from 11.60 to 13.82 over the past decade. While the company's 10-year median is 12.53 vs. the industry median of 12.60, Nakayama Steel Works 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Nakayama Steel Works's current Gross Margin % of 13.36% is 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 Nakayama Steel Works and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nakayama Steel Works's current Gross Margin % is 13.36%, which is near median its own 10-year median of 12.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nakayama Steel Works stock overvalued right now?
Based on GuruFocus' analysis, Nakayama Steel Works (TSE:5408) is currently considered Fairly Valued. The stock's GF Value™ is 円623.00, compared to a current price of 円624.00 — trading 0.2% above its estimated fair value. The current Gross Margin % is 13.36%, which is near median its 10-year median of 12.53 and 6% above the Steel industry median of 12.60. Nakayama Steel Works' overall GF Score™ is 67/100 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 Nakayama Steel Works (TSE:5408), the current Gross Margin % is 13.36% 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 Nakayama Steel Works (TSE:5408) Overvalued in 2026?
Based on GuruFocus' analysis, Nakayama Steel Works stock appears to be overvalued.
The current stock price of 円624.00 is trading 0.2% above its estimated GF Value™ of 円623.00.
GuruFocus considers Nakayama Steel Works to be Fairly Valued.
Key valuation signals for TSE:5408:
Gross Margin %: 13.36% (near median its 10-year median of 12.53)
GF Value™: 円623.00 vs. price of 円624.00 (0.2% above fair value)
Industry Position: 6% above the Steel median (#298 of 593)
No single metric tells the full story. See the TSE:5408 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nakayama Steel Works Ltd is a Japan-based company. The company operates in Steel, Engineering, and Real estate business. Its Steel business includes manufacturing and sale of steel products including coil products, steel sheets, bars and wire products. The company is also engaged in real estate buying, leasing and selling.
67GF Score
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