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The historical rank and industry rank for Shinhokoku Material's Gross Margin % or its related term are showing as below:
TSE:5542'
s Gross Margin % Range Over the Past 10 Years
Min: 19.27 Med: 22.92 Max: 27.4
Current: 25.05
During the past 13 years, the highestGross Margin % of Shinhokoku Material was 27.40%. The lowest was 19.27%. And the median was 22.92%.
TSE:5542's Gross Margin % is ranked better than 78.08% of 593
companies
in the Steel industry
Industry Median: 12.6
vs TSE:5542: 25.05
Shinhokoku Material had a gross margin of N/A% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shinhokoku Material was 3.60% per year.
Shinhokoku Material (TSE:5542) 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
Shinhokoku Material had a gross margin of N/A% for the quarter that ended in Dec. 2025 => 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.
Shinhokoku Material Gross Margin % Related Terms
Shinhokoku Material Gross Margin % Historical Data
* Premium members only.
The historical data trend for Shinhokoku Material'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:5542 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Shinhokoku Material'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.
Shinhokoku Material Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Shinhokoku Material's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shinhokoku Material'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.
Shinhokoku Material (TSE:5542) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shinhokoku Material and its competitors. Over the past decade, Shinhokoku Material's Gross Margin % has ranged from 19.27 to 27.40. According to the industry distribution chart, Shinhokoku Material ranks #130 out of 593 companies in the Steel industry, placing it in the top 21.9%.
Is Shinhokoku Material's Gross Margin % too high?
Shinhokoku Material's current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 19.27 to a high of 27.40. Based on the distribution chart, Shinhokoku Material ranks #130 out of 593 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Shinhokoku Material has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shinhokoku Material's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Shinhokoku Material ranks #130 out of 593 companies for Gross Margin %. This places Shinhokoku Material in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.60. Historically, Shinhokoku Material's own Gross Margin % has ranged from 19.27 to 27.40 over the past decade. 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. 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 Shinhokoku Material 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. Shinhokoku Material's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinhokoku Material stock overvalued right now?
Based on GuruFocus' analysis, Shinhokoku Material (TSE:5542) is currently considered Significantly Overvalued. The stock's GF Value™ is 円555.76, compared to a current price of 円801.00 — trading 44.1% above its estimated fair value. The current Gross Margin % is 0.00%. Shinhokoku Material's overall GF Score™ is 73/100 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 Shinhokoku Material (TSE:5542), the current Gross Margin % is 0.00% as of Dec. 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 Shinhokoku Material (TSE:5542) Overvalued in 2026?
Based on GuruFocus' analysis, Shinhokoku Material stock appears to be overvalued.
The current stock price of 円801.00 is trading 44.1% above its estimated GF Value™ of 円555.76.
GuruFocus considers Shinhokoku Material to be Significantly Overvalued.
Key valuation signals for TSE:5542:
Gross Margin %: 0.00%
GF Value™: 円555.76 vs. price of 円801.00 (44.1% above fair value)
No single metric tells the full story. See the TSE:5542 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shinhokoku Material Corp is a Japan-based company that engages in the manufacture and sale of special alloy industrial castings and precision processed products. The company has two business segments, which include the Special alloy business and the Real estate rental business. The company generates the majority of its revenue from the special alloy business segment, which produces parts for semiconductor and FPD manufacturing equipment, tools for manufacturing seamless steel pipes, electrical resistance materials, and special welding rods.
73GF Score
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