Hitek GlobalFRA:4JX2 56 Gross Margin % is 8.93% as of Dec. 2025, which is 83% below its 10-year median of 54.01. GuruFocus rates FRA:4JX2 with a GF Score™ of 56/100 and a GF Value™ of €9,375.01. The stock has 3 warning signs investors should review. Among 2,677 Software companies, Hitek Global ranks worse than 91.26% on this metric.
Hitek Global Inc gross margin has been in long-term decline. The average rate of decline per year is -25.2%.
The historical rank and industry rank for Hitek Global's Gross Margin % or its related term are showing as below:
FRA:4JX2'
s Gross Margin % Range Over the Past 10 Years
Min: 10.56 Med: 54.01 Max: 60.05
Current: 10.57
During the past 9 years, the highestGross Margin % of Hitek Global was 60.05%. The lowest was 10.56%. And the median was 54.01%.
FRA:4JX2's Gross Margin % is ranked worse than 91.26% of 2677
companies
in the Software industry
Industry Median: 40.49
vs FRA:4JX2: 10.57
Hitek Global had a gross margin of 8.93% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hitek Global was -25.20% per year.
Hitek Global (FRA:4JX2) 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
Hitek Global had a gross margin of 8.93% for the quarter that ended in Dec. 2025 => 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.
Hitek Global Gross Margin % Related Terms
Hitek Global Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hitek Global'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.
FRA:4JX2 vs DCSX, KSEZ, NOTE: Gross Margin % Comparison
For the Information Technology Services subindustry, Hitek Global'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.
Hitek Global Gross Margin % vs Software Industry
For the Software industry and Technology sector, Hitek Global's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hitek Global'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.
Hitek Global (FRA:4JX2) has a Gross Margin % of 8.93% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hitek Global and its competitors. This is 83% below median its historical median of 54.01. Over the past decade, Hitek Global's Gross Margin % has ranged from 10.56 to 60.05. According to the industry distribution chart, Hitek Global ranks #2443 out of 2677 companies in the Software industry, placing it in the top 91.3%.
Is Hitek Global's Gross Margin % too high?
Hitek Global's current Gross Margin % of 8.93% is 83% below median its 10-year median of 54.01. Over the past 10 years, this metric has ranged from a low of 10.56 to a high of 60.05. The Software industry median Gross Margin % is 40.49. Hitek Global's value of 8.93% is 77.9% below this industry median. Based on the distribution chart, Hitek Global ranks #2443 out of 2677 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Hitek Global has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Hitek Global's Gross Margin % compare to DCSX and KSEZ?
According to the Software industry distribution chart, Hitek Global ranks #2443 out of 2677 companies for Gross Margin %. This places Hitek Global in the lower half of its industry. The industry median Gross Margin % is 40.49. Hitek Global's value of 8.93% is 77.9% below this benchmark. Historically, Hitek Global's own Gross Margin % has ranged from 10.56 to 60.05 over the past decade. While the company's 10-year median is 54.01 vs. the industry median of 40.49, Hitek Global 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 Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.49, based on 2,677 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hitek Global's current Gross Margin % of 8.93% is 77.9% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hitek Global and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hitek Global's current Gross Margin % is 8.93%, which is 83% below median its own 10-year median of 54.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hitek Global stock overvalued right now?
Hitek Global (FRA:4JX2) has a current Gross Margin % of 8.93%. The stock's GF Value™ is €9,375.01, compared to a current price of €33.02 — trading 99.6% below its estimated fair value. The current Gross Margin % is 8.93%, which is 83% below median its 10-year median of 54.01 and 77.9% below the Software industry median of 40.49. Hitek Global's overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hitek Global (FRA:4JX2), the current Gross Margin % is 8.93% 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 Hitek Global (FRA:4JX2) Overvalued in 2026?
Based on GuruFocus' analysis, Hitek Global stock appears to be undervalued.
The current stock price of €33.02 is trading 99.6% below its estimated GF Value™ of €9,375.01.
Key valuation signals for FRA:4JX2:
Gross Margin %: 8.93% (83% below median its 10-year median of 54.01)
GF Value™: €9,375.01 vs. price of €33.02 (99.6% below fair value)
Industry Position: 77.9% below the Software median (#2443 of 2677)
No single metric tells the full story. See the FRA:4JX2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hitek Global Inc is a provider of information technology consulting and solutions services. The company has two lines of business services to small and medium businesses, which consist of Anti-Counterfeiting Tax Control System tax devices, including Golden Tax Disk and printers, ACTCS services, and IT services; and services to large businesses, which include hardware sales and software sales. It generates revenues from Hardware and equipment sales, Tax services, and Software sales.
56GF Score
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