GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nippon Seiki Co Ltd (TSE:7287) » Definitions » Gross Margin %

Nippon Seiki Co (TSE:7287) Gross Margin % : 15.19% (As of Mar. 2024)


View and export this data going back to 1989. Start your Free Trial

What is Nippon Seiki Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nippon Seiki Co's Gross Profit for the three months ended in Mar. 2024 was 円12,561 Mil. Nippon Seiki Co's Revenue for the three months ended in Mar. 2024 was 円82,709 Mil. Therefore, Nippon Seiki Co's Gross Margin % for the quarter that ended in Mar. 2024 was 15.19%.

Warning Sign:

Nippon Seiki Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.4%.


The historical rank and industry rank for Nippon Seiki Co's Gross Margin % or its related term are showing as below:

TSE:7287' s Gross Margin % Range Over the Past 10 Years
Min: 14.01   Med: 16.67   Max: 21.24
Current: 14.56


During the past 13 years, the highest Gross Margin % of Nippon Seiki Co was 21.24%. The lowest was 14.01%. And the median was 16.67%.

TSE:7287's Gross Margin % is ranked worse than
68.61% of 1271 companies
in the Vehicles & Parts industry
Industry Median: 19.91 vs TSE:7287: 14.56

Nippon Seiki Co had a gross margin of 15.19% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nippon Seiki Co was -3.40% per year.


Nippon Seiki Co Gross Margin % Historical Data

The historical data trend for Nippon Seiki 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.

* Premium members only.

Nippon Seiki Co Gross Margin % Chart

Nippon Seiki Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.05 15.14 16.15 14.01 14.56

Nippon Seiki Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.47 14.72 14.70 13.61 15.19

Competitive Comparison of Nippon Seiki Co's Gross Margin %

For the Auto Parts subindustry, Nippon Seiki 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.


Nippon Seiki Co's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Seiki Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Nippon Seiki Co's Gross Margin % falls into.



Nippon Seiki Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Nippon Seiki Co's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=45473 / 312355
=(Revenue - Cost of Goods Sold) / Revenue
=(312355 - 266882) / 312355
=14.56 %

Nippon Seiki Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=12561 / 82709
=(Revenue - Cost of Goods Sold) / Revenue
=(82709 - 70148) / 82709
=15.19 %

* 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.


Nippon Seiki Co  (TSE:7287) 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

Nippon Seiki Co had a gross margin of 15.19% for the quarter that ended in Mar. 2024 => 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.


Nippon Seiki Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Nippon Seiki Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Nippon Seiki Co (TSE:7287) Business Description

Traded in Other Exchanges
N/A
Address
Higashizao 2-34 2-chome, Nagaoka, Niigata, JPN, 940-8580
Nippon Seiki Co Ltd is a manufacturer of automobile components sold on aftermarkets. The range of products include instrument clusters for automobiles and motorcycles and other applications for head-up displays; level, revolution, pressure, and temperature sensors; household appliances, office and factory automation appliances; and passive LCD and OLED display products. On the aftermarkets, Nippon Seiki sells its product under its private label Defi. The company generates the majority of its revenue from automotive instruments, with a focus on Japan, the Americas, and the rest of Asia.

Nippon Seiki Co (TSE:7287) Headlines

No Headlines