Nippon Chemi-ConTSE:6997 +1.15%56 Gross Margin % is 18.92% as of Mar. 2026, which is 4% below its 10-year median of 19.66. GuruFocus rates TSE:6997 with a GF Score™ of 56/100 and a GF Value™ of 円1,163.13 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,457 Hardware companies, Nippon Chemi-Con ranks worse than 65.81% on this metric.
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 Chemi-Con had a gross margin of 18.92% for the quarter that ended in Mar. 2026 => 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.
Nippon Chemi-Con Gross Margin % Related Terms
Nippon Chemi-Con Gross Margin % Historical Data
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The historical data trend for Nippon Chemi-Con'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, Nippon Chemi-Con'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 Chemi-Con Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Nippon Chemi-Con's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Chemi-Con'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 Chemi-Con (TSE:6997) has a Gross Margin % of 18.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nippon Chemi-Con and its competitors. This is near median its historical median of 19.66. Over the past decade, Nippon Chemi-Con's Gross Margin % has ranged from 15.56 to 22.81. According to the industry distribution chart, Nippon Chemi-Con ranks #1617 out of 2457 companies in the Hardware industry, placing it in the top 65.8%.
Is Nippon Chemi-Con's Gross Margin % too high?
Nippon Chemi-Con's current Gross Margin % of 18.92% is near median its 10-year median of 19.66. Over the past 10 years, this metric has ranged from a low of 15.56 to a high of 22.81. The Hardware industry median Gross Margin % is 24.54. Nippon Chemi-Con's value of 18.92% is 22.9% below this industry median. Based on the distribution chart, Nippon Chemi-Con ranks #1617 out of 2457 companies in the Hardware industry, which is below the industry midpoint. Overall, Nippon Chemi-Con has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Chemi-Con's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Nippon Chemi-Con ranks #1617 out of 2457 companies for Gross Margin %. This places Nippon Chemi-Con in the lower half of its industry. The industry median Gross Margin % is 24.54. Nippon Chemi-Con's value of 18.92% is 22.9% below this benchmark. Historically, Nippon Chemi-Con's own Gross Margin % has ranged from 15.56 to 22.81 over the past decade. While the company's 10-year median is 19.66 vs. the industry median of 24.54, Nippon Chemi-Con 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 24.54, 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. Nippon Chemi-Con's current Gross Margin % of 18.92% is 22.9% 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 Chemi-Con 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. Nippon Chemi-Con's current Gross Margin % is 18.92%, which is near median its own 10-year median of 19.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Chemi-Con stock overvalued right now?
Based on GuruFocus' analysis, Nippon Chemi-Con (TSE:6997) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,163.13, compared to a current price of 円3,965.00 — trading 240.9% above its estimated fair value. The current Gross Margin % is 18.92%, which is near median its 10-year median of 19.66 and 22.9% below the Hardware industry median of 24.54. Nippon Chemi-Con's overall GF Score™ is 56/100 with 8 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 Nippon Chemi-Con (TSE:6997), the current Gross Margin % is 18.92% 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 Chemi-Con (TSE:6997) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Chemi-Con stock appears to be overvalued.
The current stock price of 円3,965.00 is trading 240.9% above its estimated GF Value™ of 円1,163.13.
GuruFocus considers Nippon Chemi-Con to be Significantly Overvalued.
Key valuation signals for TSE:6997:
Gross Margin %: 18.92% (near median its 10-year median of 19.66)
GF Value™: 円1,163.13 vs. price of 円3,965.00 (240.9% above fair value)
Industry Position: 22.9% below the Hardware median (#1617 of 2457)
No single metric tells the full story. See the TSE:6997 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Chemi-Con Corp is a Japan-based company, engages in the manufacture and sale of aluminum materials, capacitors, precision mechanical components, and electronics. The company provides the manufacture and sale of aluminum electrolytic capacitors and related products including aluminum foils. It also provides multilayer ceramic capacitors, film capacitors, metal oxide varistors TNR, nanocrystalline/amorphous/dust choke coils, electric double layer capacitors, and electro-mechanical products.
56GF Score
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