Gross Margin % is calculated as gross profit divided by its revenue. HC Group's Gross Profit for the
six
months ended in Jun. 2025 was $32 Mil. HC Group's Revenue for the
six
months ended in Jun. 2025 was $837 Mil. Therefore, HC Group's Gross Margin % for the quarter that ended in Jun. 2025 was 3.76%.
Warning Sign:
HC Group Inc gross margin has been in long-term decline. The average rate of decline per year is -15.1%.
The historical rank and industry rank for HC Group's Gross Margin % or its related term are showing as below:
HCINF'
s Gross Margin % Range Over the Past 10 Years
Min: 2.16 Med: 5.83 Max: 89.57
Current: 3.97
During the past 13 years, the highestGross Margin % of HC Group was 89.57%. The lowest was 2.16%. And the median was 5.83%.
HCINF's Gross Margin % is not ranked
in the Software industry.
Industry Median: 40.45
vs HCINF: 3.97
HC Group had a gross margin of 3.76% for the quarter that ended in Jun. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for HC Group was -15.10% per year.
HC Group (OTCPK:HCINF) 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
HC Group had a gross margin of 3.76% for the quarter that ended in Jun. 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.
HC Group Gross Margin % Related Terms
HC Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for HC Group'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.
HCINF vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, HC Group'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.
HC Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, HC Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HC Group'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.
HC Group (HCINF) has a Gross Margin % of 3.76% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on HC Group and its competitors. This is 36% below median its historical median of 5.83. Over the past decade, HC Group's Gross Margin % has ranged from 2.16 to 89.57.
Is HC Group's Gross Margin % too high?
HC Group's current Gross Margin % of 3.76% is 36% below median its 10-year median of 5.83. Over the past 10 years, this metric has ranged from a low of 2.16 to a high of 89.57. The Software industry median Gross Margin % is 40.45. HC Group's value of 3.76% is 90.7% below this industry median. Overall, HC Group has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does HC Group's Gross Margin % compare to IBM and ACN?
HC Group's Gross Margin % of 3.76% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. HC Group's value of 3.76% is 90.7% below this benchmark. Historically, HC Group's own Gross Margin % has ranged from 2.16 to 89.57 over the past decade. While the company's 10-year median is 5.83 vs. the industry median of 40.45, HC Group 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 40.45, based on 2,685 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. HC Group's current Gross Margin % of 3.76% is 90.7% 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 HC Group and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HC Group's current Gross Margin % is 3.76%, which is 36% below median its own 10-year median of 5.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HC Group stock overvalued right now?
HC Group (HCINF) has a current Gross Margin % of 3.76%. The stock's GF Value™ is $0.01, compared to a current price of $0.02 — trading 50% above its estimated fair value. The current Gross Margin % is 3.76%, which is 36% below median its 10-year median of 5.83 and 90.7% below the Software industry median of 40.45. HC Group's overall GF Score™ is 46/100 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 HC Group (HCINF), the current Gross Margin % is 3.76% as of Jun. 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 HC Group (HCINF) Overvalued in 2026?
Based on GuruFocus' analysis, HC Group stock appears to be overvalued.
The current stock price of $0.02 is trading 50% above its estimated GF Value™ of $0.01.
Key valuation signals for HCINF:
Gross Margin %: 3.76% (36% below median its 10-year median of 5.83)
GF Value™: $0.01 vs. price of $0.02 (50% above fair value)
Industry Position: 90.7% below the Software median
No single metric tells the full story. See the HCINF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HC Group Inc is a holding company based in China involved in pragmatic and robust development. The company organizes itself into three segments based on service type. The technology-driven new retail segment provides integration services around the retailing of electronics. The smart industries segment provides a business-to-business trading platform as well as anti-counterfeiting products and supply chain management. The platform and corporate services segment operates the media platform HC360.com and provides data-based marketing services. It generates a vast majority of its revenue from the smart industries segment.
46GF Score
Get the complete analysis for HCINF
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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