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Nalnet CommunicationsTSE:5870 +3.38%15 Gross Margin % is 27.75% as of Mar. 2026, which is 8% below its 10-year median of 30.12. GuruFocus rates TSE:5870 with a GF Score™ of 15/100. The stock has 1 warning sign investors should review. Among 1,307 Vehicles & Parts companies, Nalnet Communications ranks better than 71.61% 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
Nalnet Communications had a gross margin of 27.75% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Nalnet Communications Gross Margin % Related Terms
Nalnet Communications Gross Margin % Historical Data
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The historical data trend for Nalnet Communications'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:5870 vs CVNA, PAG, ALTB: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Nalnet Communications'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.
Nalnet Communications Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nalnet Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nalnet Communications'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.
Nalnet Communications (TSE:5870) has a Gross Margin % of 27.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nalnet Communications and its competitors. This is near median its historical median of 30.12. Over the past decade, Nalnet Communications' Gross Margin % has ranged from 27.82 to 32.70. According to the industry distribution chart, Nalnet Communications ranks #371 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 28.4%.
Is Nalnet Communications' Gross Margin % too high?
Nalnet Communications' current Gross Margin % of 27.75% is near median its 10-year median of 30.12. Over the past 10 years, this metric has ranged from a low of 27.82 to a high of 32.70. The Vehicles & Parts industry median Gross Margin % is 19.88. Nalnet Communications' value of 27.75% is 39.6% above this industry median. Based on the distribution chart, Nalnet Communications ranks #371 out of 1307 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Nalnet Communications has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Nalnet Communications' Gross Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Nalnet Communications ranks #371 out of 1307 companies for Gross Margin %. This puts Nalnet Communications in the upper half of its industry. The industry median Gross Margin % is 19.88. Nalnet Communications' value of 27.75% is 39.6% above this benchmark. Historically, Nalnet Communications' own Gross Margin % has ranged from 27.82 to 32.70 over the past decade. While the company's 10-year median is 30.12 vs. the industry median of 19.88, Nalnet Communications 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.88, based on 1,307 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. Nalnet Communications's current Gross Margin % of 27.75% is 39.6% 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 Nalnet Communications and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nalnet Communications's current Gross Margin % is 27.75%, which is near median its own 10-year median of 30.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nalnet Communications stock overvalued right now?
Nalnet Communications (TSE:5870) has a current Gross Margin % of 27.75%. The current Gross Margin % is 27.75%, which is near median its 10-year median of 30.12 and 39.6% above the Vehicles & Parts industry median of 19.88. Nalnet Communications' overall GF Score™ is 15/100 with 1 warning sign 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 Nalnet Communications (TSE:5870), the current Gross Margin % is 27.75% 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.
Nalnet Communications Inc is a vehicle management and maintenance management business for automobile-related companies such as auto leasing companies and individual users.
15GF Score
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