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Nippon Gear CoTSE:6356 +0.31%71 Gross Margin % is 51.86% as of Mar. 2026, which is 62% above its 10-year median of 31.92. GuruFocus rates TSE:6356 with a GF Score™ of 71/100 and a GF Value™ of 円590.21 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,317 Vehicles & Parts companies, Nippon Gear Co ranks better than 92.63% on this metric.
Nippon Gear Co (TSE:6356) 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 Gear Co had a gross margin of 51.86% for the quarter that ended in Mar. 2026 => Durable 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.
Nippon Gear Co Gross Margin % Related Terms
Nippon Gear Co Gross Margin % Historical Data
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The historical data trend for Nippon Gear 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:6356 vs ORLY, AZO, GPC: Gross Margin % Comparison
For the Auto Parts subindustry, Nippon Gear 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 Gear Co Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Gear Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Gear 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 Gear Co (TSE:6356) has a Gross Margin % of 51.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Gear Co and its competitors. This is 62% above median its historical median of 31.92. Over the past decade, Nippon Gear Co's Gross Margin % has ranged from 28.91 to 48.73. According to the industry distribution chart, Nippon Gear Co ranks #97 out of 1317 companies in the Vehicles & Parts industry, placing it in the top 7.4%.
Is Nippon Gear Co's Gross Margin % too high?
Nippon Gear Co's current Gross Margin % of 51.86% is 62% above median its 10-year median of 31.92. Over the past 10 years, this metric has ranged from a low of 28.91 to a high of 48.73. The Vehicles & Parts industry median Gross Margin % is 20.02. Nippon Gear Co's value of 51.86% is 159% above this industry median. Based on the distribution chart, Nippon Gear Co ranks #97 out of 1317 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Gear Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gear Co's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nippon Gear Co ranks #97 out of 1317 companies for Gross Margin %. This places Nippon Gear Co in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.02. Nippon Gear Co's value of 51.86% is 159% above this benchmark. Historically, Nippon Gear Co's own Gross Margin % has ranged from 28.91 to 48.73 over the past decade. While the company's 10-year median is 31.92 vs. the industry median of 20.02, Nippon Gear 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 a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 20.02, based on 1,317 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 Gear Co's current Gross Margin % of 51.86% is 159% 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 Gear Co and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 20.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Gear Co's current Gross Margin % is 51.86%, which is 62% above median its own 10-year median of 31.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gear Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gear Co (TSE:6356) is currently considered Significantly Overvalued. The stock's GF Value™ is 円590.21, compared to a current price of 円1,303.00 — trading 120.8% above its estimated fair value. The current Gross Margin % is 51.86%, which is 62% above median its 10-year median of 31.92 and 159% above the Vehicles & Parts industry median of 20.02. Nippon Gear Co's overall GF Score™ is 71/100 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 Nippon Gear Co (TSE:6356), the current Gross Margin % is 51.86% 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 Nippon Gear Co (TSE:6356) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Gear Co stock appears to be overvalued.
The current stock price of 円1,303.00 is trading 120.8% above its estimated GF Value™ of 円590.21.
GuruFocus considers Nippon Gear Co to be Significantly Overvalued.
Key valuation signals for TSE:6356:
Gross Margin %: 51.86% (62% above median its 10-year median of 31.92)
GF Value™: 円590.21 vs. price of 円1,303.00 (120.8% above fair value)
Industry Position: 159% above the Vehicles & Parts median (#97 of 1317)
No single metric tells the full story. See the TSE:6356 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.
71GF Score
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