Nippon Shokubai CoTSE:4114 +0.55%77 Net Margin % is 2.38% as of Mar. 2026, which is 46% below its 10-year median of 4.44. GuruFocus rates TSE:4114 with a GF Score™ of 77/100 and a GF Value™ of 円1,744.78 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,586 Chemicals companies, Nippon Shokubai Co ranks better than 51.51% on this metric.
The historical rank and industry rank for Nippon Shokubai Co's Net Margin % or its related term are showing as below:
TSE:4114'
s Net Margin % Range Over the Past 10 Years
Min: -3.99 Med: 4.44 Max: 7.21
Current: 4.19
TSE:4114's Net Margin % is ranked better than 51.51% of 1586
companies
in the Chemicals industry
Industry Median: 3.905
vs TSE:4114: 4.19
Nippon Shokubai Co (TSE:4114) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Nippon Shokubai Co Net Margin % Related Terms
Nippon Shokubai Co Net Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Shokubai Co's Net 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 Chemicals subindustry, Nippon Shokubai Co's Net Margin %, along with its competitors' market caps and Net 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 Shokubai Co Net Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Shokubai Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Shokubai Co's Net 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.
Nippon Shokubai Co (TSE:4114) has a Net Margin % of 2.38% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Nippon Shokubai Co and its competitors. This is 46% below median its historical median of 4.44. According to the industry distribution chart, Nippon Shokubai Co ranks #769 out of 1586 companies in the Chemicals industry, placing it in the top 48.5%.
Is Nippon Shokubai Co's Net Margin % too high?
Nippon Shokubai Co's current Net Margin % of 2.38% is 46% below median its 10-year median of 4.44. The Chemicals industry median Net Margin % is 3.91. Nippon Shokubai Co's value of 2.38% is 39.1% below this industry median. Based on the distribution chart, Nippon Shokubai Co ranks #769 out of 1586 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Shokubai Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shokubai Co's Net Margin % compare to DOW?
According to the Chemicals industry distribution chart, Nippon Shokubai Co ranks #769 out of 1586 companies for Net Margin %. This puts Nippon Shokubai Co in the upper half of its industry. The industry median Net Margin % is 3.91. Nippon Shokubai Co's value of 2.38% is 39.1% below this benchmark. While the company's 10-year median is 4.44 vs. the industry median of 3.91, Nippon Shokubai 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 Net Margin % for a Chemicals company?
The median Net Margin % among Chemicals companies is 3.91, based on 1,586 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Shokubai Co's current Net Margin % of 2.38% is 39.1% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Nippon Shokubai Co and its competitors. For the Chemicals industry, the median Net Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Shokubai Co's current Net Margin % is 2.38%, which is 46% below median its own 10-year median of 4.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shokubai Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shokubai Co (TSE:4114) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,744.78, compared to a current price of 円2,097.00 — trading 20.2% above its estimated fair value. The current Net Margin % is 2.38%, which is 46% below median its 10-year median of 4.44 and 39.1% below the Chemicals industry median of 3.91. Nippon Shokubai Co's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Nippon Shokubai Co (TSE:4114), the current Net Margin % is 2.38% 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 Shokubai Co (TSE:4114) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shokubai Co stock appears to be overvalued.
The current stock price of 円2,097.00 is trading 20.2% above its estimated GF Value™ of 円1,744.78.
GuruFocus considers Nippon Shokubai Co to be Modestly Overvalued.
Key valuation signals for TSE:4114:
Net Margin %: 2.38% (46% below median its 10-year median of 4.44)
GF Value™: 円1,744.78 vs. price of 円2,097.00 (20.2% above fair value)
Industry Position: 39.1% below the Chemicals median (#769 of 1586)
No single metric tells the full story. See the TSE:4114 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shokubai Co Ltd manufactures and sells a variety of chemicals, catalysts, and chemical-based products. The firm organizes itself into three segments based on product type. The functional chemicals segment, which generates the majority of revenue, sells polymers for concrete mixtures, acrylates used in detergents, and resins for paints and processed adhesive products. The basic chemicals segment sells ethylene oxide and ethylene glycol used in polyester fibers and plastic beverage containers. The environment and catalysts segment sells catalysts used for automotive products and lithium-ion battery production. The majority of revenue comes from Asia.
77GF Score
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