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Horizon Construction Development (FRA:B7H) 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
Horizon Construction Development had a gross margin of 27.84% for the quarter that ended in Jun. 2026 => Competition eroding margins
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.
Horizon Construction Development Gross Margin % Related Terms
Horizon Construction Development Gross Margin % Historical Data
* 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.
Horizon Construction Development Gross Margin % Chart
FRA:B7H vs URI, SUNB, AER: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, Horizon Construction Development'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.
Horizon Construction Development Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Horizon Construction Development's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Horizon Construction Development'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.
Horizon Construction Development (FRA:B7H) has a Gross Margin % of 27.84% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Horizon Construction Development and its competitors. This is 29% below median its historical median of 39.46. Over the past decade, Horizon Construction Development's Gross Margin % has ranged from 26.35 to 46.34. According to the industry distribution chart, Horizon Construction Development ranks #586 out of 1003 companies in the Business Services industry, placing it in the top 58.4%.
Is Horizon Construction Development's Gross Margin % too high?
Horizon Construction Development's current Gross Margin % of 27.84% is 29% below median its 10-year median of 39.46. Over the past 10 years, this metric has ranged from a low of 26.35 to a high of 46.34. The Business Services industry median Gross Margin % is 34.14. Horizon Construction Development's value of 27.84% is 18.5% below this industry median. Based on the distribution chart, Horizon Construction Development ranks #586 out of 1003 companies in the Business Services industry, which is below the industry midpoint. Overall, Horizon Construction Development has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Horizon Construction Development's Gross Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Horizon Construction Development ranks #586 out of 1003 companies for Gross Margin %. This places Horizon Construction Development in the lower half of its industry. The industry median Gross Margin % is 34.14. Horizon Construction Development's value of 27.84% is 18.5% below this benchmark. Historically, Horizon Construction Development's own Gross Margin % has ranged from 26.35 to 46.34 over the past decade. While the company's 10-year median is 39.46 vs. the industry median of 34.14, Horizon Construction Development 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.14, based on 1,003 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. Horizon Construction Development's current Gross Margin % of 27.84% is 18.5% 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 Horizon Construction Development and its competitors. For the Business Services industry, the median Gross Margin % is 34.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Horizon Construction Development's current Gross Margin % is 27.84%, which is 29% below median its own 10-year median of 39.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Horizon Construction Development stock overvalued right now?
Horizon Construction Development (FRA:B7H) has a current Gross Margin % of 27.84%. The stock's GF Value™ is €0.10, compared to a current price of €0.06 — trading 41.5% below its estimated fair value. The current Gross Margin % is 27.84%, which is 29% below median its 10-year median of 39.46 and 18.5% below the Business Services industry median of 34.14. Horizon Construction Development's overall GF Score™ is 82/100 with 9 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 Horizon Construction Development (FRA:B7H), the current Gross Margin % is 27.84% as of Jun. 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 Horizon Construction Development (FRA:B7H) Overvalued in 2026?
Based on GuruFocus' analysis, Horizon Construction Development stock appears to be undervalued.
The current stock price of €0.06 is trading 41.5% below its estimated GF Value™ of €0.10.
Key valuation signals for FRA:B7H:
Gross Margin %: 27.84% (29% below median its 10-year median of 39.46)
GF Value™: €0.10 vs. price of €0.06 (41.5% below fair value)
Industry Position: 18.5% below the Business Services median (#586 of 1003)
No single metric tells the full story. See the FRA:B7H stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Horizon Construction Development Ltd is an equipment operation service provider. The Group is committed to providing one-stop comprehensive solutions of products and services for domestic and overseas clients in the construction and industrial sectors. The company has three reportable operating segments, Operating lease services, Engineering and technical services, and Asset management and other services. A majority of its revenue is generated from the Operating lease services segment that includes aerial work platform, neo-excavation support system, neo-formwork system and other equipment.
82GF Score
Get the complete analysis for FRA:B7H
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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