Nakamura Choukou CoTSE:6166 -7.31%48 Gross Margin % is 22.05% as of Mar. 2026, which is 10% below its 10-year median of 24.48. GuruFocus rates TSE:6166 with a GF Score™ of 48/100 and a GF Value™ of 円371.80 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,991 Industrial Products companies, Nakamura Choukou Co ranks worse than 59.98% on this metric.
Nakamura Choukou Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.6%.
The historical rank and industry rank for Nakamura Choukou Co's Gross Margin % or its related term are showing as below:
TSE:6166'
s Gross Margin % Range Over the Past 10 Years
Min: -46.07 Med: 24.48 Max: 31.76
Current: 23.24
During the past 13 years, the highestGross Margin % of Nakamura Choukou Co was 31.76%. The lowest was -46.07%. And the median was 24.48%.
TSE:6166's Gross Margin % is ranked worse than 59.98% of 2991
companies
in the Industrial Products industry
Industry Median: 26.81
vs TSE:6166: 23.24
Nakamura Choukou Co had a gross margin of 22.05% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nakamura Choukou Co was -7.60% per year.
Nakamura Choukou Co (TSE:6166) 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
Nakamura Choukou Co had a gross margin of 22.05% 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.
Nakamura Choukou Co Gross Margin % Related Terms
Nakamura Choukou Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nakamura Choukou 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:6166 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Nakamura Choukou 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.
Nakamura Choukou Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nakamura Choukou Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nakamura Choukou 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.
Nakamura Choukou Co (TSE:6166) has a Gross Margin % of 22.05% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nakamura Choukou Co and its competitors. This is 10% below median its historical median of 24.48. According to the industry distribution chart, Nakamura Choukou Co ranks #1794 out of 2991 companies in the Industrial Products industry, placing it in the top 60%.
Is Nakamura Choukou Co's Gross Margin % too high?
Nakamura Choukou Co's current Gross Margin % of 22.05% is 10% below median its 10-year median of 24.48. The Industrial Products industry median Gross Margin % is 26.81. Nakamura Choukou Co's value of 22.05% is 17.8% below this industry median. Based on the distribution chart, Nakamura Choukou Co ranks #1794 out of 2991 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Nakamura Choukou Co has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nakamura Choukou Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Nakamura Choukou Co ranks #1794 out of 2991 companies for Gross Margin %. This places Nakamura Choukou Co in the lower half of its industry. The industry median Gross Margin % is 26.81. Nakamura Choukou Co's value of 22.05% is 17.8% below this benchmark. While the company's 10-year median is 24.48 vs. the industry median of 26.81, Nakamura Choukou 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,991 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. Nakamura Choukou Co's current Gross Margin % of 22.05% is 17.8% 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 Nakamura Choukou Co 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. Nakamura Choukou Co's current Gross Margin % is 22.05%, which is 10% below median its own 10-year median of 24.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nakamura Choukou Co stock overvalued right now?
Based on GuruFocus' analysis, Nakamura Choukou Co (TSE:6166) is currently considered Significantly Overvalued. The stock's GF Value™ is 円371.80, compared to a current price of 円862.00 — trading 131.8% above its estimated fair value. The current Gross Margin % is 22.05%, which is 10% below median its 10-year median of 24.48 and 17.8% below the Industrial Products industry median of 26.81. Nakamura Choukou Co's overall GF Score™ is 48/100 with 7 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 Nakamura Choukou Co (TSE:6166), the current Gross Margin % is 22.05% 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 Nakamura Choukou Co (TSE:6166) Overvalued in 2026?
Based on GuruFocus' analysis, Nakamura Choukou Co stock appears to be overvalued.
The current stock price of 円862.00 is trading 131.8% above its estimated GF Value™ of 円371.80.
GuruFocus considers Nakamura Choukou Co to be Significantly Overvalued.
Key valuation signals for TSE:6166:
Gross Margin %: 22.05% (10% below median its 10-year median of 24.48)
GF Value™: 円371.80 vs. price of 円862.00 (131.8% above fair value)
Industry Position: 17.8% below the Industrial Products median (#1794 of 2991)
No single metric tells the full story. See the TSE:6166 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nakamura Choukou Co Ltd is engaged in the manufacturing of precision nozzles, diamond wire, and material products for industrial and scientific applications. Its operating segments include the Special Precision Equipment business, which produces nozzles and peripheral parts for electronic component mounters; the Chemical Fiber Spinning Nozzle business, which supplies spinning nozzles and equipment for chemical fiber and nonwoven fabric production; the D-Next business, which manufactures diamond wire for power semiconductors; and the Material Science business, which develops and sells nano-sized zeolite.
48GF Score
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