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NF HoldingsTSE:6864 -3.50%70 Gross Margin % is 38.64% as of Mar. 2026, which is 17% above its 10-year median of 33.15. GuruFocus rates TSE:6864 with a GF Score™ of 70/100 and a GF Value™ of 円1,151.30 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,457 Hardware companies, NF Holdings ranks better than 74.28% on this metric.
The historical rank and industry rank for NF Holdings's Gross Margin % or its related term are showing as below:
TSE:6864'
s Gross Margin % Range Over the Past 10 Years
Min: 31.33 Med: 33.15 Max: 38.32
Current: 38.32
During the past 13 years, the highestGross Margin % of NF Holdings was 38.32%. The lowest was 31.33%. And the median was 33.15%.
TSE:6864's Gross Margin % is ranked better than 74.28% of 2457
companies
in the Hardware industry
Industry Median: 24.54
vs TSE:6864: 38.32
NF Holdings had a gross margin of 38.64% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NF Holdings was 2.30% per year.
NF Holdings (TSE:6864) 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
NF Holdings had a gross margin of 38.64% 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.
NF Holdings Gross Margin % Related Terms
NF Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for NF Holdings'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 Electronic Components subindustry, NF Holdings'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.
NF Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, NF Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NF Holdings'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.
NF Holdings (TSE:6864) has a Gross Margin % of 38.64% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NF Holdings and its competitors. This is 17% above median its historical median of 33.15. Over the past decade, NF Holdings' Gross Margin % has ranged from 31.33 to 38.32. According to the industry distribution chart, NF Holdings ranks #632 out of 2457 companies in the Hardware industry, placing it in the top 25.7%.
Is NF Holdings' Gross Margin % too high?
NF Holdings' current Gross Margin % of 38.64% is 17% above median its 10-year median of 33.15. Over the past 10 years, this metric has ranged from a low of 31.33 to a high of 38.32. The Hardware industry median Gross Margin % is 24.54. NF Holdings' value of 38.64% is 57.5% above this industry median. Based on the distribution chart, NF Holdings ranks #632 out of 2457 companies in the Hardware industry, which is above the industry midpoint. Overall, NF Holdings has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NF Holdings' Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, NF Holdings ranks #632 out of 2457 companies for Gross Margin %. This puts NF Holdings in the upper half of its industry. The industry median Gross Margin % is 24.54. NF Holdings' value of 38.64% is 57.5% above this benchmark. Historically, NF Holdings' own Gross Margin % has ranged from 31.33 to 38.32 over the past decade. While the company's 10-year median is 33.15 vs. the industry median of 24.54, NF Holdings 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.54, based on 2,457 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. NF Holdings's current Gross Margin % of 38.64% is 57.5% 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 NF Holdings and its competitors. For the Hardware industry, the median Gross Margin % is 24.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NF Holdings's current Gross Margin % is 38.64%, which is 17% above median its own 10-year median of 33.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NF Holdings stock overvalued right now?
Based on GuruFocus' analysis, NF Holdings (TSE:6864) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,151.30, compared to a current price of 円1,546.00 — trading 34.3% above its estimated fair value. The current Gross Margin % is 38.64%, which is 17% above median its 10-year median of 33.15 and 57.5% above the Hardware industry median of 24.54. NF Holdings' overall GF Score™ is 70/100 with 2 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 NF Holdings (TSE:6864), the current Gross Margin % is 38.64% 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 NF Holdings (TSE:6864) Overvalued in 2026?
Based on GuruFocus' analysis, NF Holdings stock appears to be overvalued.
The current stock price of 円1,546.00 is trading 34.3% above its estimated GF Value™ of 円1,151.30.
GuruFocus considers NF Holdings to be Significantly Overvalued.
Key valuation signals for TSE:6864:
Gross Margin %: 38.64% (17% above median its 10-year median of 33.15)
GF Value™: 円1,151.30 vs. price of 円1,546.00 (34.3% above fair value)
Industry Position: 57.5% above the Hardware median (#632 of 2457)
No single metric tells the full story. See the TSE:6864 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NF Holdings Corp is engaged in providing solutions in measurement and control in Japan. The company is engaged in development, manufacture, and sale of control device-related, power supply control-related, environmental energy-related, and other related equipment, as well as related calibration and repair services.
70GF Score
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