Hongchang International CoHCIL 27 Gross Margin % is 17.89% as of Dec. 2025, which is 62% below its 10-year median of 46.64. GuruFocus rates HCIL with a GF Score™ of 27/100. The stock has 6 warning signs investors should review. Among 305 Retail - Defensive companies, Hongchang International Co ranks worse than 61.31% on this metric.
Hongchang International Co (OTCPK:HCIL) 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
Hongchang International Co had a gross margin of 17.89% 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.
Hongchang International Co Gross Margin % Related Terms
Hongchang International Co 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.
For the Food Distribution subindustry, Hongchang International 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.
Hongchang International Co Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Hongchang International Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hongchang International 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.
Hongchang International Co (HCIL) has a Gross Margin % of 17.89% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hongchang International Co and its competitors. This is 62% below median its historical median of 46.64. Over the past decade, Hongchang International Co's Gross Margin % has ranged from 2.58 to 68.75. According to the industry distribution chart, Hongchang International Co ranks #187 out of 305 companies in the Retail - Defensive industry, placing it in the top 61.3%.
Is Hongchang International Co's Gross Margin % too high?
Hongchang International Co's current Gross Margin % of 17.89% is 62% below median its 10-year median of 46.64. Over the past 10 years, this metric has ranged from a low of 2.58 to a high of 68.75. The Retail - Defensive industry median Gross Margin % is 24.08. Hongchang International Co's value of 17.89% is 25.7% below this industry median. Based on the distribution chart, Hongchang International Co ranks #187 out of 305 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Hongchang International Co has a GF Score™ of 27/100, reflecting its overall financial health beyond just this single metric.
How does Hongchang International Co's Gross Margin % compare to TWG and DIT?
According to the Retail - Defensive industry distribution chart, Hongchang International Co ranks #187 out of 305 companies for Gross Margin %. This places Hongchang International Co in the lower half of its industry. The industry median Gross Margin % is 24.08. Hongchang International Co's value of 17.89% is 25.7% below this benchmark. Historically, Hongchang International Co's own Gross Margin % has ranged from 2.58 to 68.75 over the past decade. While the company's 10-year median is 46.64 vs. the industry median of 24.08, Hongchang International Co 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 305 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. Hongchang International Co's current Gross Margin % of 17.89% is 25.7% 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 Hongchang International Co and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongchang International Co's current Gross Margin % is 17.89%, which is 62% below median its own 10-year median of 46.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongchang International Co stock overvalued right now?
Hongchang International Co (HCIL) has a current Gross Margin % of 17.89%. The current Gross Margin % is 17.89%, which is 62% below median its 10-year median of 46.64 and 25.7% below the Retail - Defensive industry median of 24.08. Hongchang International Co's overall GF Score™ is 27/100 with 6 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 Hongchang International Co (HCIL), the current Gross Margin % is 17.89% 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.
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