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Nippon Filcon CoTSE:5942 +0.15%65 Gross Margin % is 38.23% as of May. 2026, which is 11% above its 10-year median of 34.49. GuruFocus rates TSE:5942 with a GF Score™ of 65/100 and a GF Value™ of 円549.32 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,997 Industrial Products companies, Nippon Filcon Co ranks better than 70.2% on this metric.
Nippon Filcon Co (TSE:5942) 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
Nippon Filcon Co had a gross margin of 38.23% for the quarter that ended in May. 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.
Nippon Filcon Co Gross Margin % Related Terms
Nippon Filcon Co Gross Margin % Historical Data
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The historical data trend for Nippon Filcon Co'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:5942 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Nippon Filcon 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.
Nippon Filcon Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Filcon Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Filcon 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.
Nippon Filcon Co (TSE:5942) has a Gross Margin % of 38.23% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Filcon Co and its competitors. This is 11% above median its historical median of 34.49. Over the past decade, Nippon Filcon Co's Gross Margin % has ranged from 33.36 to 35.58. According to the industry distribution chart, Nippon Filcon Co ranks #893 out of 2997 companies in the Industrial Products industry, placing it in the top 29.8%.
Is Nippon Filcon Co's Gross Margin % too high?
Nippon Filcon Co's current Gross Margin % of 38.23% is 11% above median its 10-year median of 34.49. Over the past 10 years, this metric has ranged from a low of 33.36 to a high of 35.58. The Industrial Products industry median Gross Margin % is 26.88. Nippon Filcon Co's value of 38.23% is 42.2% above this industry median. Based on the distribution chart, Nippon Filcon Co ranks #893 out of 2997 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Nippon Filcon Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Filcon Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Nippon Filcon Co ranks #893 out of 2997 companies for Gross Margin %. This puts Nippon Filcon Co in the upper half of its industry. The industry median Gross Margin % is 26.88. Nippon Filcon Co's value of 38.23% is 42.2% above this benchmark. Historically, Nippon Filcon Co's own Gross Margin % has ranged from 33.36 to 35.58 over the past decade. While the company's 10-year median is 34.49 vs. the industry median of 26.88, Nippon Filcon Co 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.88, 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. Nippon Filcon Co's current Gross Margin % of 38.23% is 42.2% 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 Filcon Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Filcon Co's current Gross Margin % is 38.23%, which is 11% above median its own 10-year median of 34.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Filcon Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Filcon Co (TSE:5942) is currently considered Modestly Overvalued. The stock's GF Value™ is 円549.32, compared to a current price of 円651.00 — trading 18.5% above its estimated fair value. The current Gross Margin % is 38.23%, which is 11% above median its 10-year median of 34.49 and 42.2% above the Industrial Products industry median of 26.88. Nippon Filcon Co's overall GF Score™ is 65/100 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 Nippon Filcon Co (TSE:5942), the current Gross Margin % is 38.23% as of May. 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 Filcon Co (TSE:5942) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Filcon Co stock appears to be overvalued.
The current stock price of 円651.00 is trading 18.5% above its estimated GF Value™ of 円549.32.
GuruFocus considers Nippon Filcon Co to be Modestly Overvalued.
Key valuation signals for TSE:5942:
Gross Margin %: 38.23% (11% above median its 10-year median of 34.49)
GF Value™: 円549.32 vs. price of 円651.00 (18.5% above fair value)
Industry Position: 42.2% above the Industrial Products median (#893 of 2997)
No single metric tells the full story. See the TSE:5942 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Filcon Co Ltd is a Japan-based company. Its business activities are divided into four divisions including industrial functional filter business, electronic components business, environment and water treatment-related business and real estate leasing business. The company manufactures and sales precision processed products by photo fabrication and various other manufacturing methods. Its environment and water treatment-related business designs and sales water treatment equipment, environmental preservation equipment and various related equipment. Real estate leasing business leases and manages lodging, sports and entertainment facilities.
65GF Score
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