Hong Leong AsiaFRA:HOM +2.23%57 Gross Margin % is 20.60% as of Dec. 2025, which is 17% above its 10-year median of 17.58. GuruFocus rates FRA:HOM with a GF Score™ of 57/100 and a GF Value™ of €0.66 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,311 Vehicles & Parts companies, Hong Leong Asia ranks worse than 58.58% on this metric.
The historical rank and industry rank for Hong Leong Asia's Gross Margin % or its related term are showing as below:
FRA:HOM'
s Gross Margin % Range Over the Past 10 Years
Min: 14.79 Med: 17.58 Max: 20.54
Current: 17.7
During the past 13 years, the highestGross Margin % of Hong Leong Asia was 20.54%. The lowest was 14.79%. And the median was 17.58%.
FRA:HOM's Gross Margin % is ranked worse than 58.58% of 1311
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs FRA:HOM: 17.70
Hong Leong Asia had a gross margin of 20.60% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hong Leong Asia was 3.10% per year.
Hong Leong Asia (FRA:HOM) 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
Hong Leong Asia had a gross margin of 20.60% for the quarter that ended in Dec. 2025 => 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.
Hong Leong Asia Gross Margin % Related Terms
Hong Leong Asia Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hong Leong Asia'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.
For the Auto Manufacturers subindustry, Hong Leong Asia'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.
Hong Leong Asia Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Asia's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hong Leong Asia'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.
Hong Leong Asia (FRA:HOM) has a Gross Margin % of 20.60% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hong Leong Asia and its competitors. This is 17% above median its historical median of 17.58. Over the past decade, Hong Leong Asia's Gross Margin % has ranged from 14.79 to 20.54. According to the industry distribution chart, Hong Leong Asia ranks #768 out of 1311 companies in the Vehicles & Parts industry, placing it in the top 58.6%.
Is Hong Leong Asia's Gross Margin % too high?
Hong Leong Asia's current Gross Margin % of 20.60% is 17% above median its 10-year median of 17.58. Over the past 10 years, this metric has ranged from a low of 14.79 to a high of 20.54. The Vehicles & Parts industry median Gross Margin % is 19.84. Hong Leong Asia's value of 20.60% is 3.8% above this industry median. Based on the distribution chart, Hong Leong Asia ranks #768 out of 1311 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Hong Leong Asia has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Asia's Gross Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Asia ranks #768 out of 1311 companies for Gross Margin %. This places Hong Leong Asia in the lower half of its industry. The industry median Gross Margin % is 19.84. Hong Leong Asia's value of 20.60% is 3.8% above this benchmark. Historically, Hong Leong Asia's own Gross Margin % has ranged from 14.79 to 20.54 over the past decade. While the company's 10-year median is 17.58 vs. the industry median of 19.84, Hong Leong Asia 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 Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 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. Hong Leong Asia's current Gross Margin % of 20.60% is 3.8% 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 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 Hong Leong Asia and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Asia's current Gross Margin % is 20.60%, which is 17% above median its own 10-year median of 17.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Asia stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Asia (FRA:HOM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.66, compared to a current price of €1.83 — trading 177.3% above its estimated fair value. The current Gross Margin % is 20.60%, which is 17% above median its 10-year median of 17.58 and 3.8% above the Vehicles & Parts industry median of 19.84. Hong Leong Asia's overall GF Score™ is 57/100 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 Hong Leong Asia (FRA:HOM), the current Gross Margin % is 20.60% 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 Hong Leong Asia (FRA:HOM) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Asia stock appears to be overvalued.
The current stock price of €1.83 is trading 177.3% above its estimated GF Value™ of €0.66.
GuruFocus considers Hong Leong Asia to be Significantly Overvalued.
Key valuation signals for FRA:HOM:
Gross Margin %: 20.60% (17% above median its 10-year median of 17.58)
GF Value™: €0.66 vs. price of €1.83 (177.3% above fair value)
Industry Position: 3.8% above the Vehicles & Parts median (#768 of 1311)
No single metric tells the full story. See the FRA:HOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Asia Ltd is the industrial manufacturing and distribution division of Hong Leong Group Singapore. It operates as the diversified industrial conglomerate in China and Southeast Asia. Its reportable segments are Powertrain solutions: engines for on-road, off-road, genset and marine applications. and Building materials: cement, precast concrete products, ready-mix concrete and quarry products. Geographically it derives key revenue from China.
57GF Score
Get the complete analysis for FRA:HOM
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:HOM has been successfully added to your 
