Nitto Denko (TSE:6988) Moat Score: 5/10 (As of Jul. 15, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:6988 Nitto Denko Corp TSE:6988
84 GF Score
Price 円3,323.00
GF Value 円2,972.54
Valuation Modestly Overvalued
! 2 Warning Signs
View Full Analysis

What is Nitto Denko Moat Score?

Nitto Denko TSE:6988 -0.03% 84 Moat Score is 5 as of Jul. 15, 2026. GuruFocus rates TSE:6988 with a GF Score™ of 84/100 and a GF Value™ of 円2,972.54 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,618 Chemicals companies, Nitto Denko ranks better than 96.11% on this metric.

Nitto Denko has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Nitto Denko has Narrow Moat: Nitto Denko Corp has a solid narrow moat due to its strong brand and proprietary technology in industrial materials. It benefits from economies of scale but lacks significant regulatory barriers or network effects.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Nitto Denko might have Narrow Moat - Solid narrow moat.

Nitto Denko  (TSE:6988) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Nitto Denko Moat Score Related Terms

TSE:6988 vs LIN, SHW, ECL: Moat Score Comparison

For the Specialty Chemicals subindustry, Nitto Denko's Moat Score, along with its competitors' market caps and Moat Score 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.

Nitto Denko Moat Score vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Nitto Denko's Moat Score distribution charts can be found below:

* The bar in red indicates where Nitto Denko's Moat Score falls into.


TSE:6988
84GF Score
Nitto Denko Corp TSE:6988
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Nitto Denko (TSE:6988) has a Moat Score of 5 as of Jul. 15, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Nitto Denko ranks #63 out of 1618 companies in the Chemicals industry, placing it in the top 3.9%.
Is Nitto Denko's Moat Score too high?
Nitto Denko's current Moat Score is 5. Based on the distribution chart, Nitto Denko ranks #63 out of 1618 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Nitto Denko has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nitto Denko's Moat Score compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nitto Denko ranks #63 out of 1618 companies for Moat Score. This places Nitto Denko in the top 4% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Chemicals company?
A good Moat Score depends on the Chemicals industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Nitto Denko's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nitto Denko stock overvalued right now?
Based on GuruFocus' analysis, Nitto Denko (TSE:6988) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,972.54, compared to a current price of 円3,323.00 — trading 11.8% above its estimated fair value. The current Moat Score is 5. Nitto Denko's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Nitto Denko (TSE:6988), the current Moat Score is 5 as of Jul. 15, 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 Nitto Denko (TSE:6988) Overvalued in 2026?

Based on GuruFocus' analysis, Nitto Denko stock appears to be overvalued. The current stock price of 円3,323.00 is trading 11.8% above its estimated GF Value™ of 円2,972.54. GuruFocus considers Nitto Denko to be Modestly Overvalued.

Key valuation signals for TSE:6988:

  • Moat Score: 5
  • GF Value™: 円2,972.54 vs. price of 円3,323.00 (11.8% above fair value)
  • GF Score™: 84/100 with 2 warning signs

No single metric tells the full story. See the TSE:6988 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nitto Denko Business Description

Address 4-20 Ofukacho, 33rd Floor, Tower A, Grand Front Osaka, Kita-ku, Osaka, JPN, 530-0011
Nitto Denko is a manufacturer of advanced materials for niche industry applications. Its three segments are industrial tape (35% of revenue), optical films (55%), and materials used in health science (10%). Its advanced materials are used in manufacturing with main customers being suppliers to original equipment manufacturers in the computer, smartphone, and automobile industries. The company has more than 15,000 products. Most revenue is from Asia/Oceania (60%), followed by Japan (20%). The remainder is roughly equally split between Americas and Europe, each representing about 10% of revenue.
84GF Score

Get the complete analysis for TSE:6988

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円3,323.00
Price
円2,972.54
GF Value