Daiki Aluminium Industry Co (TSE:5702) 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
Daiki Aluminium Industry Co had a gross margin of 5.31% 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.
Daiki Aluminium Industry Co Gross Margin % Related Terms
Daiki Aluminium Industry Co Gross Margin % Historical Data
* 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:5702 vs AA, CENX, CSTM: Gross Margin % Comparison
For the Aluminum subindustry, Daiki Aluminium Industry Co'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.
Daiki Aluminium Industry Co Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Daiki Aluminium Industry Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Daiki Aluminium Industry Co'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.
Daiki Aluminium Industry Co (TSE:5702) has a Gross Margin % of 5.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Daiki Aluminium Industry Co and its competitors. This is 27% below median its historical median of 7.24. Over the past decade, Daiki Aluminium Industry Co's Gross Margin % has ranged from 4.59 to 12.40. According to the industry distribution chart, Daiki Aluminium Industry Co ranks #618 out of 726 companies in the Metals & Mining industry, placing it in the top 85.1%.
Is Daiki Aluminium Industry Co's Gross Margin % too high?
Daiki Aluminium Industry Co's current Gross Margin % of 5.31% is 27% below median its 10-year median of 7.24. Over the past 10 years, this metric has ranged from a low of 4.59 to a high of 12.40. The Metals & Mining industry median Gross Margin % is 26.21. Daiki Aluminium Industry Co's value of 5.31% is 79.7% below this industry median. Based on the distribution chart, Daiki Aluminium Industry Co ranks #618 out of 726 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Daiki Aluminium Industry Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Daiki Aluminium Industry Co's Gross Margin % compare to AA and CENX?
According to the Metals & Mining industry distribution chart, Daiki Aluminium Industry Co ranks #618 out of 726 companies for Gross Margin %. This places Daiki Aluminium Industry Co in the lower half of its industry. The industry median Gross Margin % is 26.21. Daiki Aluminium Industry Co's value of 5.31% is 79.7% below this benchmark. Historically, Daiki Aluminium Industry Co's own Gross Margin % has ranged from 4.59 to 12.40 over the past decade. While the company's 10-year median is 7.24 vs. the industry median of 26.21, Daiki Aluminium Industry Co 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.21, based on 726 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. Daiki Aluminium Industry Co's current Gross Margin % of 5.31% is 79.7% 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 Daiki Aluminium Industry Co and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiki Aluminium Industry Co's current Gross Margin % is 5.31%, which is 27% below median its own 10-year median of 7.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiki Aluminium Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Daiki Aluminium Industry Co (TSE:5702) is currently considered Fairly Valued. The stock's GF Value™ is 円1,465.89, compared to a current price of 円1,456.00 — trading 0.7% below its estimated fair value. The current Gross Margin % is 5.31%, which is 27% below median its 10-year median of 7.24 and 79.7% below the Metals & Mining industry median of 26.21. Daiki Aluminium Industry Co's overall GF Score™ is 73/100 with 2 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 Daiki Aluminium Industry Co (TSE:5702), the current Gross Margin % is 5.31% 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 Daiki Aluminium Industry Co (TSE:5702) Overvalued in 2026?
Based on GuruFocus' analysis, Daiki Aluminium Industry Co stock appears to be undervalued.
The current stock price of 円1,456.00 is trading 0.7% below its estimated GF Value™ of 円1,465.89.
GuruFocus considers Daiki Aluminium Industry Co to be Fairly Valued.
Key valuation signals for TSE:5702:
Gross Margin %: 5.31% (27% below median its 10-year median of 7.24)
GF Value™: 円1,465.89 vs. price of 円1,456.00 (0.7% below fair value)
Industry Position: 79.7% below the Metals & Mining median (#618 of 726)
No single metric tells the full story. See the TSE:5702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daiki Aluminium Industry Co Ltd engages in the manufacture and sale of secondary aluminum alloy ingots for die-casting, casting, de-oxidation, and rolling. The company offers secondary aluminum alloy ingots for die-casting, casting, de-oxidation, and rolling; secondary aluminum ingots for roll products; and aluminum mother alloy ingots. It is also involved in the design, construction, and repair of aluminum smelting furnaces; trading of aluminum ingots and aluminum scrap; and processing of turnings, dross, and defective products arising from sources, such as die-cast and cast metal manufacturers.
73GF Score
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