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Nippon Chuzo K.K.TSE:5609 -1.35%62 Gross Margin % is 16.11% as of Mar. 2026, which is 13% above its 10-year median of 14.28. GuruFocus rates TSE:5609 with a GF Score™ of 62/100 and a GF Value™ of 円722.51 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 593 Steel companies, Nippon Chuzo K.K. ranks better than 57.17% 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
Nippon Chuzo K.K. had a gross margin of 16.11% 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 Chuzo K.K. Gross Margin % Related Terms
Nippon Chuzo K.K. Gross Margin % Historical Data
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The historical data trend for Nippon Chuzo K.K.'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:5609 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Nippon Chuzo K.K.'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 Chuzo K.K. Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Chuzo K.K.'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Chuzo K.K.'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 Chuzo K.K. (TSE:5609) has a Gross Margin % of 16.11% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Chuzo K.K. and its competitors. This is 13% above median its historical median of 14.28. Over the past decade, Nippon Chuzo K.K.'s Gross Margin % has ranged from 7.61 to 17.11. According to the industry distribution chart, Nippon Chuzo K.K. ranks #254 out of 593 companies in the Steel industry, placing it in the top 42.8%.
Is Nippon Chuzo K.K.'s Gross Margin % too high?
Nippon Chuzo K.K.'s current Gross Margin % of 16.11% is 13% above median its 10-year median of 14.28. Over the past 10 years, this metric has ranged from a low of 7.61 to a high of 17.11. The Steel industry median Gross Margin % is 12.60. Nippon Chuzo K.K.'s value of 16.11% is 27.9% above this industry median. Based on the distribution chart, Nippon Chuzo K.K. ranks #254 out of 593 companies in the Steel industry, which is above the industry midpoint. Overall, Nippon Chuzo K.K. has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Chuzo K.K.'s Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Chuzo K.K. ranks #254 out of 593 companies for Gross Margin %. This puts Nippon Chuzo K.K. in the upper half of its industry. The industry median Gross Margin % is 12.60. Nippon Chuzo K.K.'s value of 16.11% is 27.9% above this benchmark. Historically, Nippon Chuzo K.K.'s own Gross Margin % has ranged from 7.61 to 17.11 over the past decade. While the company's 10-year median is 14.28 vs. the industry median of 12.60, Nippon Chuzo K.K. 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. Nippon Chuzo K.K.'s current Gross Margin % of 16.11% is 27.9% 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 Nippon Chuzo K.K. 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. Nippon Chuzo K.K.'s current Gross Margin % is 16.11%, which is 13% above median its own 10-year median of 14.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Chuzo K.K. stock overvalued right now?
Based on GuruFocus' analysis, Nippon Chuzo K.K. (TSE:5609) is currently considered Significantly Overvalued. The stock's GF Value™ is 円722.51, compared to a current price of 円950.00 — trading 31.5% above its estimated fair value. The current Gross Margin % is 16.11%, which is 13% above median its 10-year median of 14.28 and 27.9% above the Steel industry median of 12.60. Nippon Chuzo K.K.'s overall GF Score™ is 62/100 with 9 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 Nippon Chuzo K.K. (TSE:5609), the current Gross Margin % is 16.11% 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 Chuzo K.K. (TSE:5609) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Chuzo K.K. stock appears to be overvalued.
The current stock price of 円950.00 is trading 31.5% above its estimated GF Value™ of 円722.51.
GuruFocus considers Nippon Chuzo K.K. to be Significantly Overvalued.
Key valuation signals for TSE:5609:
Gross Margin %: 16.11% (13% above median its 10-year median of 14.28)
GF Value™: 円722.51 vs. price of 円950.00 (31.5% above fair value)
Industry Position: 27.9% above the Steel median (#254 of 593)
No single metric tells the full story. See the TSE:5609 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Chuzo K.K. is a Japan-based company mainly engaged in the manufacturing and sale of forged products. It operates in three business divisions, including the Material product division that is engaged in the manufacturing of castings and fabricated materials, particularly for casting machinery. The Engineering division designs and manufactures bridge support and expansion device. And the Construction materials division manages fixed column foot construction.
62GF 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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