NITCHITSU CoTSE:7021 -0.71%65 Gross Margin % is 12.09% as of Mar. 2026, which is 17% below its 10-year median of 14.58. GuruFocus rates TSE:7021 with a GF Score™ of 65/100 and a GF Value™ of 円1,936.74 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,993 Industrial Products companies, NITCHITSU Co ranks worse than 85.17% on this metric.
NITCHITSU Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for NITCHITSU Co's Gross Margin % or its related term are showing as below:
TSE:7021'
s Gross Margin % Range Over the Past 10 Years
Min: 11.57 Med: 14.58 Max: 17.86
Current: 12.6
During the past 13 years, the highestGross Margin % of NITCHITSU Co was 17.86%. The lowest was 11.57%. And the median was 14.58%.
TSE:7021's Gross Margin % is ranked worse than 85.17% of 2993
companies
in the Industrial Products industry
Industry Median: 26.83
vs TSE:7021: 12.60
NITCHITSU Co had a gross margin of 12.09% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NITCHITSU Co was -1.60% per year.
NITCHITSU Co (TSE:7021) 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
NITCHITSU Co had a gross margin of 12.09% 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.
NITCHITSU Co Gross Margin % Related Terms
NITCHITSU Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for NITCHITSU 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.
TSE:7021 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, NITCHITSU 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.
NITCHITSU Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, NITCHITSU Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NITCHITSU 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.
NITCHITSU Co (TSE:7021) has a Gross Margin % of 12.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NITCHITSU Co and its competitors. This is 17% below median its historical median of 14.58. Over the past decade, NITCHITSU Co's Gross Margin % has ranged from 11.57 to 17.86. According to the industry distribution chart, NITCHITSU Co ranks #2549 out of 2993 companies in the Industrial Products industry, placing it in the top 85.2%.
Is NITCHITSU Co's Gross Margin % too high?
NITCHITSU Co's current Gross Margin % of 12.09% is 17% below median its 10-year median of 14.58. Over the past 10 years, this metric has ranged from a low of 11.57 to a high of 17.86. The Industrial Products industry median Gross Margin % is 26.83. NITCHITSU Co's value of 12.09% is 54.9% below this industry median. Based on the distribution chart, NITCHITSU Co ranks #2549 out of 2993 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, NITCHITSU Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NITCHITSU Co's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, NITCHITSU Co ranks #2549 out of 2993 companies for Gross Margin %. This places NITCHITSU Co in the lower half of its industry. The industry median Gross Margin % is 26.83. NITCHITSU Co's value of 12.09% is 54.9% below this benchmark. Historically, NITCHITSU Co's own Gross Margin % has ranged from 11.57 to 17.86 over the past decade. While the company's 10-year median is 14.58 vs. the industry median of 26.83, NITCHITSU 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. NITCHITSU Co's current Gross Margin % of 12.09% is 54.9% 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 NITCHITSU 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. NITCHITSU Co's current Gross Margin % is 12.09%, which is 17% below median its own 10-year median of 14.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NITCHITSU Co stock overvalued right now?
Based on GuruFocus' analysis, NITCHITSU Co (TSE:7021) is currently considered Fairly Valued. The stock's GF Value™ is 円1,936.74, compared to a current price of 円1,826.00 — trading 5.7% below its estimated fair value. The current Gross Margin % is 12.09%, which is 17% below median its 10-year median of 14.58 and 54.9% below the Industrial Products industry median of 26.83. NITCHITSU Co's overall GF Score™ is 65/100 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 NITCHITSU Co (TSE:7021), the current Gross Margin % is 12.09% 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 NITCHITSU Co (TSE:7021) Overvalued in 2026?
Based on GuruFocus' analysis, NITCHITSU Co stock appears to be undervalued.
The current stock price of 円1,826.00 is trading 5.7% below its estimated GF Value™ of 円1,936.74.
GuruFocus considers NITCHITSU Co to be Fairly Valued.
Key valuation signals for TSE:7021:
Gross Margin %: 12.09% (17% below median its 10-year median of 14.58)
GF Value™: 円1,936.74 vs. price of 円1,826.00 (5.7% below fair value)
Industry Position: 54.9% below the Industrial Products median (#2549 of 2993)
No single metric tells the full story. See the TSE:7021 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NITCHITSU Co Ltd is a diversified industrial machinery manufacturing company. It is organized into four business units - Machinery related business, Resource related business, Real estate-related business, and Material related business. The Machinery related business manufactures and sells air preheaters and their elements, marine equipment and industrial equipment. The Resource business is engaged in the mining, processing and selling of crystalline limestone. The Real estate-related business is engaged in property leasing activities. The Material division manufactures and sells heat-resistant paints and purchases, processes and sell of linatex.
65GF Score
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