Nippon Signal CoTSE:6741 -0.38%90 Gross Margin % is 26.53% as of Mar. 2026, which is 18% above its 10-year median of 22.46. GuruFocus rates TSE:6741 with a GF Score™ of 90/100 and a GF Value™ of 円1,288.11 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,993 Industrial Products companies, Nippon Signal Co ranks worse than 53.63% on this metric.
The historical rank and industry rank for Nippon Signal Co's Gross Margin % or its related term are showing as below:
TSE:6741'
s Gross Margin % Range Over the Past 10 Years
Min: 19.11 Med: 22.46 Max: 25.39
Current: 25.39
During the past 13 years, the highestGross Margin % of Nippon Signal Co was 25.39%. The lowest was 19.11%. And the median was 22.46%.
TSE:6741's Gross Margin % is ranked worse than 53.63% of 2993
companies
in the Industrial Products industry
Industry Median: 26.83
vs TSE:6741: 25.39
Nippon Signal Co had a gross margin of 26.53% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nippon Signal Co was 2.70% per year.
Nippon Signal Co (TSE:6741) 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 Signal Co had a gross margin of 26.53% 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.
Nippon Signal Co Gross Margin % Related Terms
Nippon Signal Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Signal 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.
For the Electrical Equipment & Parts subindustry, Nippon Signal 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 Signal Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Signal Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Signal 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 Signal Co (TSE:6741) has a Gross Margin % of 26.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Signal Co and its competitors. This is 18% above median its historical median of 22.46. Over the past decade, Nippon Signal Co's Gross Margin % has ranged from 19.11 to 25.39. According to the industry distribution chart, Nippon Signal Co ranks #1605 out of 2993 companies in the Industrial Products industry, placing it in the top 53.6%.
Is Nippon Signal Co's Gross Margin % too high?
Nippon Signal Co's current Gross Margin % of 26.53% is 18% above median its 10-year median of 22.46. Over the past 10 years, this metric has ranged from a low of 19.11 to a high of 25.39. The Industrial Products industry median Gross Margin % is 26.83. Nippon Signal Co's value of 26.53% is 1.1% below this industry median. Based on the distribution chart, Nippon Signal Co ranks #1605 out of 2993 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Nippon Signal Co has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Signal Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Nippon Signal Co ranks #1605 out of 2993 companies for Gross Margin %. This places Nippon Signal Co in the lower half of its industry. The industry median Gross Margin % is 26.83. Nippon Signal Co's value of 26.53% is 1.1% below this benchmark. Historically, Nippon Signal Co's own Gross Margin % has ranged from 19.11 to 25.39 over the past decade. While the company's 10-year median is 22.46 vs. the industry median of 26.83, Nippon Signal 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 26.83, based on 2,993 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 Signal Co's current Gross Margin % of 26.53% is 1.1% 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 Nippon Signal Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Signal Co's current Gross Margin % is 26.53%, which is 18% above median its own 10-year median of 22.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Signal Co (TSE:6741) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,288.11, compared to a current price of 円1,579.00 — trading 22.6% above its estimated fair value. The current Gross Margin % is 26.53%, which is 18% above median its 10-year median of 22.46 and 1.1% below the Industrial Products industry median of 26.83. Nippon Signal Co's overall GF Score™ is 90/100 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 Signal Co (TSE:6741), the current Gross Margin % is 26.53% 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 Signal Co (TSE:6741) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Signal Co stock appears to be overvalued.
The current stock price of 円1,579.00 is trading 22.6% above its estimated GF Value™ of 円1,288.11.
GuruFocus considers Nippon Signal Co to be Modestly Overvalued.
Key valuation signals for TSE:6741:
Gross Margin %: 26.53% (18% above median its 10-year median of 22.46)
GF Value™: 円1,288.11 vs. price of 円1,579.00 (22.6% above fair value)
Industry Position: 1.1% below the Industrial Products median (#1605 of 2993)
No single metric tells the full story. See the TSE:6741 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Signal Co Ltd is a Japanese technology company. Its products and services fall into the following categories: railway signal systems, traffic information systems, automatic fare collection, or AFR, systems, and parking information systems. The railway signal systems division provides automatic train supervision systems, relay interlocking equipment, level-crossing systems, and LED information boards. The traffic information systems division offers universal traffic management systems, local controllers, and LED traffic signal lights. The AFR system division offers comprehensive network systems to automate station operations. The parking information systems division offers car parking systems and bicycle lock systems.
90GF Score
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