NaitoTSE:7624 -1.40%67 Gross Margin % is 12.11% as of Feb. 2026, which is 7% above its 10-year median of 11.37. GuruFocus rates TSE:7624 with a GF Score™ of 67/100 and a GF Value™ of 円138.37 (Fairly Valued). The stock has 7 warning signs investors should review. Among 153 Industrial Distribution companies, Naito ranks worse than 83.66% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Naito's Gross Profit for the
six
months ended in Feb. 2026 was 円2,642 Mil. Naito's Revenue for the
six
months ended in Feb. 2026 was 円21,813 Mil. Therefore, Naito's Gross Margin % for the quarter that ended in Feb. 2026 was 12.11%.
The historical rank and industry rank for Naito's Gross Margin % or its related term are showing as below:
TSE:7624'
s Gross Margin % Range Over the Past 10 Years
Min: 10.66 Med: 11.37 Max: 12.28
Current: 12.04
During the past 13 years, the highestGross Margin % of Naito was 12.28%. The lowest was 10.66%. And the median was 11.37%.
TSE:7624's Gross Margin % is ranked worse than 83.66% of 153
companies
in the Industrial Distribution industry
Industry Median: 24.34
vs TSE:7624: 12.04
Naito had a gross margin of 12.11% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Naito was 2.10% per year.
Naito (TSE:7624) 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
Naito had a gross margin of 12.11% for the quarter that ended in Feb. 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.
Naito Gross Margin % Related Terms
Naito Gross Margin % Historical Data
* Premium members only.
The historical data trend for Naito'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:7624 vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Naito'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.
Naito Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Naito's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Naito'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.
Naito (TSE:7624) has a Gross Margin % of 12.11% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Naito and its competitors. This is near median its historical median of 11.37. Over the past decade, Naito's Gross Margin % has ranged from 10.66 to 12.28. According to the industry distribution chart, Naito ranks #128 out of 153 companies in the Industrial Distribution industry, placing it in the top 83.7%.
Is Naito's Gross Margin % too high?
Naito's current Gross Margin % of 12.11% is near median its 10-year median of 11.37. Over the past 10 years, this metric has ranged from a low of 10.66 to a high of 12.28. The Industrial Distribution industry median Gross Margin % is 24.34. Naito's value of 12.11% is 50.2% below this industry median. Based on the distribution chart, Naito ranks #128 out of 153 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Naito has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Naito's Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Naito ranks #128 out of 153 companies for Gross Margin %. This places Naito in the lower half of its industry. The industry median Gross Margin % is 24.34. Naito's value of 12.11% is 50.2% below this benchmark. Historically, Naito's own Gross Margin % has ranged from 10.66 to 12.28 over the past decade. While the company's 10-year median is 11.37 vs. the industry median of 24.34, Naito 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 Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.34, based on 153 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. Naito's current Gross Margin % of 12.11% is 50.2% 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 Naito and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Naito's current Gross Margin % is 12.11%, which is near median its own 10-year median of 11.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Naito stock overvalued right now?
Based on GuruFocus' analysis, Naito (TSE:7624) is currently considered Fairly Valued. The stock's GF Value™ is 円138.37, compared to a current price of 円141.00 — trading 1.9% above its estimated fair value. The current Gross Margin % is 12.11%, which is near median its 10-year median of 11.37 and 50.2% below the Industrial Distribution industry median of 24.34. Naito's overall GF Score™ is 67/100 with 7 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 Naito (TSE:7624), the current Gross Margin % is 12.11% as of Feb. 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 Naito (TSE:7624) Overvalued in 2026?
Based on GuruFocus' analysis, Naito stock appears to be overvalued.
The current stock price of 円141.00 is trading 1.9% above its estimated GF Value™ of 円138.37.
GuruFocus considers Naito to be Fairly Valued.
Key valuation signals for TSE:7624:
Gross Margin %: 12.11% (near median its 10-year median of 11.37)
GF Value™: 円138.37 vs. price of 円141.00 (1.9% above fair value)
Industry Position: 50.2% below the Industrial Distribution median (#128 of 153)
No single metric tells the full story. See the TSE:7624 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Naito & Co Ltd engages in the trading of machine tools. The company sales cutting tools, measurement, industrial equipment and machine tools. Its product offerings include drilling tool, threading tool, milling tool, measuring equipment, compressor, safety equipment, chemical supplies, lifting equipment, environment improvement items, transport equipment, work assistance equipment, among others.
67GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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