TSE:4063's Gross Margin % is ranked better than 82.29% of 1513
companies
in the Chemicals industry
Industry Median: 21.85
vs TSE:4063: 38.05
Shin-Etsu Chemical Co had a gross margin of 40.57% for the quarter that ended in Jun. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shin-Etsu Chemical Co was 3.20% per year.
Shin-Etsu Chemical Co Gross Margin % Historical Data
The historical data trend for Shin-Etsu Chemical 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.
Competitive Comparison of Shin-Etsu Chemical Co's Gross Margin %
For the Chemicals subindustry, Shin-Etsu Chemical 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.
Shin-Etsu Chemical Co's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shin-Etsu Chemical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shin-Etsu Chemical 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.
Shin-Etsu Chemical Co (TSE:4063) 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
Shin-Etsu Chemical Co had a gross margin of 40.57% for the quarter that ended in Jun. 2024 => Durable 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.
Shin-Etsu Chemical Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Shin-Etsu Chemical Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Shin-Etsu Chemical Co Ltd is a Japan-based company primarily engaged in chemical business. The company operates in six business segments namely Poly Vinyl Chloride, Specialty Chemicals, Silicon, Semiconductor Silicon, Electronic and Functional Materials and Diversified business. It derives majority of revenue through Poly Vinyl Chloride segment which manufactures and sells vinyl chloride, caustic soda products, chloromethane and methanol. The group is also involved in manufacturing and selling of various other chemical products such as Polyvinyl alcohol, Synthetic pheromones, Rare-earth magnets for electronics industry and general applications, Photoresists, Photomask blanks and others. Geographically, it operates from the market of Japan and its business is amplifying across the globe.
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