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Di Nikko Engineering CoTSE:6635 +2.62%61 Gross Margin % is 9.91% as of Dec. 2025, which is 4% above its 10-year median of 9.54. GuruFocus rates TSE:6635 with a GF Score™ of 61/100 and a GF Value™ of 円491.32 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,454 Hardware companies, Di Nikko Engineering Co ranks worse than 83.46% on this metric.
TSE:6635's Gross Margin % is ranked worse than 83.46% of 2454
companies
in the Hardware industry
Industry Median: 24.5
vs TSE:6635: 10.49
Di Nikko Engineering Co had a gross margin of 9.91% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Di Nikko Engineering Co was 2.50% per year.
Di Nikko Engineering Co (TSE:6635) 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
Di Nikko Engineering Co had a gross margin of 9.91% for the quarter that ended in Dec. 2025 => 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.
Di Nikko Engineering Co Gross Margin % Related Terms
Di Nikko Engineering 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.
For the Electronic Components subindustry, Di Nikko Engineering 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.
Di Nikko Engineering Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Di Nikko Engineering Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Di Nikko Engineering 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.
Di Nikko Engineering Co (TSE:6635) has a Gross Margin % of 9.91% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Di Nikko Engineering Co and its competitors. This is near median its historical median of 9.54. Over the past decade, Di Nikko Engineering Co's Gross Margin % has ranged from 8.41 to 10.79. According to the industry distribution chart, Di Nikko Engineering Co ranks #2048 out of 2454 companies in the Hardware industry, placing it in the top 83.5%.
Is Di Nikko Engineering Co's Gross Margin % too high?
Di Nikko Engineering Co's current Gross Margin % of 9.91% is near median its 10-year median of 9.54. Over the past 10 years, this metric has ranged from a low of 8.41 to a high of 10.79. The Hardware industry median Gross Margin % is 24.50. Di Nikko Engineering Co's value of 9.91% is 59.6% below this industry median. Based on the distribution chart, Di Nikko Engineering Co ranks #2048 out of 2454 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Di Nikko Engineering Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Di Nikko Engineering Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Di Nikko Engineering Co ranks #2048 out of 2454 companies for Gross Margin %. This places Di Nikko Engineering Co in the lower half of its industry. The industry median Gross Margin % is 24.50. Di Nikko Engineering Co's value of 9.91% is 59.6% below this benchmark. Historically, Di Nikko Engineering Co's own Gross Margin % has ranged from 8.41 to 10.79 over the past decade. While the company's 10-year median is 9.54 vs. the industry median of 24.50, Di Nikko Engineering 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,454 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. Di Nikko Engineering Co's current Gross Margin % of 9.91% is 59.6% 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 Di Nikko Engineering Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Di Nikko Engineering Co's current Gross Margin % is 9.91%, which is near median its own 10-year median of 9.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Di Nikko Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Di Nikko Engineering Co (TSE:6635) is currently considered Significantly Overvalued. The stock's GF Value™ is 円491.32, compared to a current price of 円666.00 — trading 35.6% above its estimated fair value. The current Gross Margin % is 9.91%, which is near median its 10-year median of 9.54 and 59.6% below the Hardware industry median of 24.50. Di Nikko Engineering Co's overall GF Score™ is 61/100 with 5 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 Di Nikko Engineering Co (TSE:6635), the current Gross Margin % is 9.91% as of Dec. 2025. 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 Di Nikko Engineering Co (TSE:6635) Overvalued in 2026?
Based on GuruFocus' analysis, Di Nikko Engineering Co stock appears to be overvalued.
The current stock price of 円666.00 is trading 35.6% above its estimated GF Value™ of 円491.32.
GuruFocus considers Di Nikko Engineering Co to be Significantly Overvalued.
Key valuation signals for TSE:6635:
Gross Margin %: 9.91% (near median its 10-year median of 9.54)
GF Value™: 円491.32 vs. price of 円666.00 (35.6% above fair value)
Industry Position: 59.6% below the Hardware median (#2048 of 2454)
No single metric tells the full story. See the TSE:6635 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Di Nikko Engineering Co Ltd engages in the design, test, manufacture, distribution, and return/repair of electronic components and assemblies for original equipment manufacturers in Japan. Its services include the design to production of the circuit implementation of an electronic board used for an electronics product, an OA apparatus, optical goods, and communications equipment. Geographically company manages in two segments Japan and Asia.
61GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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