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Nihon Denkei CoTSE:9908 +2.06%82 Gross Margin % is 13.68% as of Mar. 2026, which is 13% above its 10-year median of 12.10. GuruFocus rates TSE:9908 with a GF Score™ of 82/100 and a GF Value™ of 円2,543.98 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,003 Business Services companies, Nihon Denkei Co ranks worse than 87.44% on this metric.
Nihon Denkei Co (TSE:9908) 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
Nihon Denkei Co had a gross margin of 13.68% 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.
Nihon Denkei Co Gross Margin % Related Terms
Nihon Denkei Co Gross Margin % Historical Data
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The historical data trend for Nihon Denkei 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:9908 vs URI, SUNB, AER: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, Nihon Denkei 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.
Nihon Denkei Co Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Nihon Denkei Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nihon Denkei 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.
Nihon Denkei Co (TSE:9908) has a Gross Margin % of 13.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nihon Denkei Co and its competitors. This is 13% above median its historical median of 12.10. Over the past decade, Nihon Denkei Co's Gross Margin % has ranged from 11.28 to 14.25. According to the industry distribution chart, Nihon Denkei Co ranks #877 out of 1003 companies in the Business Services industry, placing it in the top 87.4%.
Is Nihon Denkei Co's Gross Margin % too high?
Nihon Denkei Co's current Gross Margin % of 13.68% is 13% above median its 10-year median of 12.10. Over the past 10 years, this metric has ranged from a low of 11.28 to a high of 14.25. The Business Services industry median Gross Margin % is 34.14. Nihon Denkei Co's value of 13.68% is 59.9% below this industry median. Based on the distribution chart, Nihon Denkei Co ranks #877 out of 1003 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Nihon Denkei Co has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Denkei Co's Gross Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Nihon Denkei Co ranks #877 out of 1003 companies for Gross Margin %. This places Nihon Denkei Co in the lower half of its industry. The industry median Gross Margin % is 34.14. Nihon Denkei Co's value of 13.68% is 59.9% below this benchmark. Historically, Nihon Denkei Co's own Gross Margin % has ranged from 11.28 to 14.25 over the past decade. While the company's 10-year median is 12.10 vs. the industry median of 34.14, Nihon Denkei 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 a Business Services company?
The median Gross Margin % among Business Services companies is 34.14, based on 1,003 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. Nihon Denkei Co's current Gross Margin % of 13.68% is 59.9% 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 Nihon Denkei Co and its competitors. For the Business Services industry, the median Gross Margin % is 34.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Denkei Co's current Gross Margin % is 13.68%, which is 13% above median its own 10-year median of 12.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Denkei Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Denkei Co (TSE:9908) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,543.98, compared to a current price of 円2,871.00 — trading 12.9% above its estimated fair value. The current Gross Margin % is 13.68%, which is 13% above median its 10-year median of 12.10 and 59.9% below the Business Services industry median of 34.14. Nihon Denkei Co's overall GF Score™ is 82/100 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 Nihon Denkei Co (TSE:9908), the current Gross Margin % is 13.68% 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 Nihon Denkei Co (TSE:9908) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Denkei Co stock appears to be overvalued.
The current stock price of 円2,871.00 is trading 12.9% above its estimated GF Value™ of 円2,543.98.
GuruFocus considers Nihon Denkei Co to be Modestly Overvalued.
Key valuation signals for TSE:9908:
Gross Margin %: 13.68% (13% above median its 10-year median of 12.10)
GF Value™: 円2,543.98 vs. price of 円2,871.00 (12.9% above fair value)
Industry Position: 59.9% below the Business Services median (#877 of 1003)
No single metric tells the full story. See the TSE:9908 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Denkei Co Ltd is engaged in the leasing and rental business of electronic measuring instruments, system equipment, electronic parts, and others. Its three reportable segments being Japan, China, and Other, including Southeast Asia. It derives maximum revenue from Japan.
82GF Score
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