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Nippon Denko CoTSE:5563 -1.17%72 Net Margin % is 5.04% as of Dec. 2025, which is 14% above its 10-year median of 4.43. GuruFocus rates TSE:5563 with a GF Score™ of 72/100 and a GF Value™ of 円308.34 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 611 Steel companies, Nippon Denko Co ranks better than 55.97% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Nippon Denko Co's Net Income for the
three
months ended in Dec. 2025 was 円979 Mil. Nippon Denko Co's Revenue for the
three
months ended in Dec. 2025 was 円19,413 Mil. Therefore, Nippon Denko Co's net margin for the quarter that ended in Dec. 2025 was 5.04%.
The historical rank and industry rank for Nippon Denko Co's Net Margin % or its related term are showing as below:
TSE:5563'
s Net Margin % Range Over the Past 10 Years
Min: -20.21 Med: 4.43 Max: 11.77
Current: 2.53
TSE:5563's Net Margin % is ranked better than 55.97% of 611
companies
in the Steel industry
Industry Median: 1.86
vs TSE:5563: 2.53
Nippon Denko Co (TSE:5563) 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 Denko Co Net Margin % Related Terms
Nippon Denko Co Net Margin % Historical Data
* Premium members only.
The historical data trend for Nippon Denko 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.
TSE:5563 vs NUE, STLD, RS: Net Margin % Comparison
For the Steel subindustry, Nippon Denko 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 Denko Co Net Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Denko Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Denko 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 Denko Co (TSE:5563) has a Net Margin % of 5.04% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Nippon Denko Co and its competitors. This is 14% above median its historical median of 4.43. According to the industry distribution chart, Nippon Denko Co ranks #269 out of 611 companies in the Steel industry, placing it in the top 44%.
Is Nippon Denko Co's Net Margin % too high?
Nippon Denko Co's current Net Margin % of 5.04% is 14% above median its 10-year median of 4.43. The Steel industry median Net Margin % is 1.86. Nippon Denko Co's value of 5.04% is 171% above this industry median. Based on the distribution chart, Nippon Denko Co ranks #269 out of 611 companies in the Steel industry, which is above the industry midpoint. Overall, Nippon Denko Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Denko Co's Net Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Denko Co ranks #269 out of 611 companies for Net Margin %. This puts Nippon Denko Co in the upper half of its industry. The industry median Net Margin % is 1.86. Nippon Denko Co's value of 5.04% is 171% above this benchmark. While the company's 10-year median is 4.43 vs. the industry median of 1.86, Nippon Denko Co has consistently been above 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 Steel company?
The median Net Margin % among Steel companies is 1.86, based on 611 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 Denko Co's current Net Margin % of 5.04% is 171% above 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 Denko Co and its competitors. For the Steel industry, the median Net Margin % is 1.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Denko Co's current Net Margin % is 5.04%, which is 14% above median its own 10-year median of 4.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Denko Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Denko Co (TSE:5563) is currently considered Significantly Overvalued. The stock's GF Value™ is 円308.34, compared to a current price of 円422.00 — trading 36.9% above its estimated fair value. The current Net Margin % is 5.04%, which is 14% above median its 10-year median of 4.43 and 171% above the Steel industry median of 1.86. Nippon Denko Co's overall GF Score™ is 72/100 with 4 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 Denko Co (TSE:5563), the current Net Margin % is 5.04% as of Dec. 2025. 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 Denko Co (TSE:5563) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Denko Co stock appears to be overvalued.
The current stock price of 円422.00 is trading 36.9% above its estimated GF Value™ of 円308.34.
GuruFocus considers Nippon Denko Co to be Significantly Overvalued.
Key valuation signals for TSE:5563:
Net Margin %: 5.04% (14% above median its 10-year median of 4.43)
GF Value™: 円308.34 vs. price of 円422.00 (36.9% above fair value)
Industry Position: 171% above the Steel median (#269 of 611)
No single metric tells the full story. See the TSE:5563 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Denko Co Ltd is mainly engaged in the manufacturing and distribution of ferroalloys. In addition, it is also involved in the electric power generation. The company's core business activities are categorized into four segments: Ferroalloys, Functional Materials, Environment, and Other. The company serves a diverse range of markets including power companies, agricultural cooperatives, local governments and companies discharging industrial waste.
72GF Score
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