Nichia Steel WorksTSE:5658 -0.29%70 Gross Margin % is 19.37% as of Mar. 2026, which is 4% above its 10-year median of 18.69. GuruFocus rates TSE:5658 with a GF Score™ of 70/100 and a GF Value™ of 円326.18 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,997 Industrial Products companies, Nichia Steel Works ranks worse than 72.67% on this metric.
Nichia Steel Works Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.2%.
The historical rank and industry rank for Nichia Steel Works's Gross Margin % or its related term are showing as below:
TSE:5658'
s Gross Margin % Range Over the Past 10 Years
Min: 17.08 Med: 18.69 Max: 20.84
Current: 18.32
During the past 13 years, the highestGross Margin % of Nichia Steel Works was 20.84%. The lowest was 17.08%. And the median was 18.69%.
TSE:5658's Gross Margin % is ranked worse than 72.67% of 2997
companies
in the Industrial Products industry
Industry Median: 26.81
vs TSE:5658: 18.32
Nichia Steel Works had a gross margin of 19.37% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nichia Steel Works was -3.20% per year.
Nichia Steel Works (TSE:5658) 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
Nichia Steel Works had a gross margin of 19.37% 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.
Nichia Steel Works Gross Margin % Related Terms
Nichia Steel Works Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nichia 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:5658 vs SNA, RBC, LECO: Gross Margin % Comparison
For the Tools & Accessories subindustry, Nichia 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.
Nichia Steel Works Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nichia Steel Works's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nichia 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.
Nichia Steel Works (TSE:5658) has a Gross Margin % of 19.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nichia Steel Works and its competitors. This is near median its historical median of 18.69. Over the past decade, Nichia Steel Works' Gross Margin % has ranged from 17.08 to 20.84. According to the industry distribution chart, Nichia Steel Works ranks #2178 out of 2997 companies in the Industrial Products industry, placing it in the top 72.7%.
Is Nichia Steel Works' Gross Margin % too high?
Nichia Steel Works' current Gross Margin % of 19.37% is near median its 10-year median of 18.69. Over the past 10 years, this metric has ranged from a low of 17.08 to a high of 20.84. The Industrial Products industry median Gross Margin % is 26.81. Nichia Steel Works' value of 19.37% is 27.8% below this industry median. Based on the distribution chart, Nichia Steel Works ranks #2178 out of 2997 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Nichia Steel Works has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nichia Steel Works' Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Nichia Steel Works ranks #2178 out of 2997 companies for Gross Margin %. This places Nichia Steel Works in the lower half of its industry. The industry median Gross Margin % is 26.81. Nichia Steel Works' value of 19.37% is 27.8% below this benchmark. Historically, Nichia Steel Works' own Gross Margin % has ranged from 17.08 to 20.84 over the past decade. While the company's 10-year median is 18.69 vs. the industry median of 26.81, Nichia Steel Works 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,997 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. Nichia Steel Works's current Gross Margin % of 19.37% is 27.8% 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 Nichia Steel Works and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nichia Steel Works's current Gross Margin % is 19.37%, which is near median its own 10-year median of 18.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nichia Steel Works stock overvalued right now?
Based on GuruFocus' analysis, Nichia Steel Works (TSE:5658) is currently considered Fairly Valued. The stock's GF Value™ is 円326.18, compared to a current price of 円345.00 — trading 5.8% above its estimated fair value. The current Gross Margin % is 19.37%, which is near median its 10-year median of 18.69 and 27.8% below the Industrial Products industry median of 26.81. Nichia Steel Works' overall GF Score™ is 70/100 with 5 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 Nichia Steel Works (TSE:5658), the current Gross Margin % is 19.37% 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 Nichia Steel Works (TSE:5658) Overvalued in 2026?
Based on GuruFocus' analysis, Nichia Steel Works stock appears to be overvalued.
The current stock price of 円345.00 is trading 5.8% above its estimated GF Value™ of 円326.18.
GuruFocus considers Nichia Steel Works to be Fairly Valued.
Key valuation signals for TSE:5658:
Gross Margin %: 19.37% (near median its 10-year median of 18.69)
GF Value™: 円326.18 vs. price of 円345.00 (5.8% above fair value)
Industry Position: 27.8% below the Industrial Products median (#2178 of 2997)
No single metric tells the full story. See the TSE:5658 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nichia Steel Works Ltd is a manufacturer of steel wire products, fasteners and related products. The products are used in various fields such as construction and civil infrastructure. It offers low carbon steel wire products, hard drawn steel wire products, fasteners & special products and other special finished products.
70GF Score
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