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NKK Switches CoTSE:6943 -0.71%61 Gross Margin % is 43.37% as of Mar. 2026, which is 9% above its 10-year median of 39.96. GuruFocus rates TSE:6943 with a GF Score™ of 61/100 and a GF Value™ of 円4,000.05 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 3,007 Industrial Products companies, NKK Switches Co ranks better than 83.34% on this metric.
NKK Switches Co (TSE:6943) 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
NKK Switches Co had a gross margin of 43.37% 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.
NKK Switches Co Gross Margin % Related Terms
NKK Switches Co Gross Margin % Historical Data
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The historical data trend for NKK Switches 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, NKK Switches 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.
NKK Switches Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, NKK Switches Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NKK Switches 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.
NKK Switches Co (TSE:6943) has a Gross Margin % of 43.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NKK Switches Co and its competitors. This is near median its historical median of 39.96. Over the past decade, NKK Switches Co's Gross Margin % has ranged from 34.65 to 44.15. According to the industry distribution chart, NKK Switches Co ranks #501 out of 3007 companies in the Industrial Products industry, placing it in the top 16.7%.
Is NKK Switches Co's Gross Margin % too high?
NKK Switches Co's current Gross Margin % of 43.37% is near median its 10-year median of 39.96. Over the past 10 years, this metric has ranged from a low of 34.65 to a high of 44.15. The Industrial Products industry median Gross Margin % is 26.95. NKK Switches Co's value of 43.37% is 60.9% above this industry median. Based on the distribution chart, NKK Switches Co ranks #501 out of 3007 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, NKK Switches 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 NKK Switches Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, NKK Switches Co ranks #501 out of 3007 companies for Gross Margin %. This places NKK Switches Co in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.95. NKK Switches Co's value of 43.37% is 60.9% above this benchmark. Historically, NKK Switches Co's own Gross Margin % has ranged from 34.65 to 44.15 over the past decade. While the company's 10-year median is 39.96 vs. the industry median of 26.95, NKK Switches 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.95, based on 3,007 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. NKK Switches Co's current Gross Margin % of 43.37% is 60.9% 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 NKK Switches Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NKK Switches Co's current Gross Margin % is 43.37%, which is near median its own 10-year median of 39.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NKK Switches Co stock overvalued right now?
Based on GuruFocus' analysis, NKK Switches Co (TSE:6943) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,000.05, compared to a current price of 円5,560.00 — trading 39% above its estimated fair value. The current Gross Margin % is 43.37%, which is near median its 10-year median of 39.96 and 60.9% above the Industrial Products industry median of 26.95. NKK Switches Co's overall GF Score™ is 61/100 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 NKK Switches Co (TSE:6943), the current Gross Margin % is 43.37% 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 NKK Switches Co (TSE:6943) Overvalued in 2026?
Based on GuruFocus' analysis, NKK Switches Co stock appears to be overvalued.
The current stock price of 円5,560.00 is trading 39% above its estimated GF Value™ of 円4,000.05.
GuruFocus considers NKK Switches Co to be Significantly Overvalued.
Key valuation signals for TSE:6943:
Gross Margin %: 43.37% (near median its 10-year median of 39.96)
GF Value™: 円4,000.05 vs. price of 円5,560.00 (39% above fair value)
Industry Position: 60.9% above the Industrial Products median (#501 of 3007)
No single metric tells the full story. See the TSE:6943 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NKK Switches Co Ltd is a Japan-based company that engages in the manufacture and sale of switches and peripheral equipment. It offers DIP, illuminated, keylock, membrane keypads, pushbutton, rocker, rotary, slide, surface mount, tactile, tilt, toggle, and touch screen switches; switch guides; and accessories.
61GF Score
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