Hengan International Group CoHEGIY +0.21%64 Gross Margin % is 35.47% as of Dec. 2025, which is 6% below its 10-year median of 37.79. GuruFocus rates HEGIY with a GF Score™ of 64/100 and a GF Value™ of $16.82 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,897 Consumer Packaged Goods companies, Hengan International Group Co ranks better than 66.05% on this metric.
Hengan International Group Co (OTCPK:HEGIY) 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
Hengan International Group Co had a gross margin of 35.47% 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.
Hengan International Group Co Gross Margin % Related Terms
Hengan International Group 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.
Hengan International Group Co Gross Margin % Chart
For the Household & Personal Products subindustry, Hengan International Group 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.
Hengan International Group Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hengan International Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hengan International Group 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.
Hengan International Group Co (HEGIY) has a Gross Margin % of 35.47% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hengan International Group Co and its competitors. This is near median its historical median of 37.79. Over the past decade, Hengan International Group Co's Gross Margin % has ranged from 32.31 to 48.78. According to the industry distribution chart, Hengan International Group Co ranks #644 out of 1897 companies in the Consumer Packaged Goods industry, placing it in the top 33.9%.
Is Hengan International Group Co's Gross Margin % too high?
Hengan International Group Co's current Gross Margin % of 35.47% is near median its 10-year median of 37.79. Over the past 10 years, this metric has ranged from a low of 32.31 to a high of 48.78. The Consumer Packaged Goods industry median Gross Margin % is 26.35. Hengan International Group Co's value of 35.47% is 34.6% above this industry median. Based on the distribution chart, Hengan International Group Co ranks #644 out of 1897 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Hengan International Group Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hengan International Group Co's Gross Margin % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Hengan International Group Co ranks #644 out of 1897 companies for Gross Margin %. This puts Hengan International Group Co in the upper half of its industry. The industry median Gross Margin % is 26.35. Hengan International Group Co's value of 35.47% is 34.6% above this benchmark. Historically, Hengan International Group Co's own Gross Margin % has ranged from 32.31 to 48.78 over the past decade. While the company's 10-year median is 37.79 vs. the industry median of 26.35, Hengan International Group Co 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.35, based on 1,897 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. Hengan International Group Co's current Gross Margin % of 35.47% is 34.6% 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 Hengan International Group Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengan International Group Co's current Gross Margin % is 35.47%, which is near median its own 10-year median of 37.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengan International Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hengan International Group Co (HEGIY) is currently considered Modestly Undervalued. The stock's GF Value™ is $16.82, compared to a current price of $14.55 — trading 13.5% below its estimated fair value. The current Gross Margin % is 35.47%, which is near median its 10-year median of 37.79 and 34.6% above the Consumer Packaged Goods industry median of 26.35. Hengan International Group Co's overall GF Score™ is 64/100 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 Hengan International Group Co (HEGIY), the current Gross Margin % is 35.47% 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 Hengan International Group Co (HEGIY) Overvalued in 2026?
Based on GuruFocus' analysis, Hengan International Group Co stock appears to be undervalued.
The current stock price of $14.55 is trading 13.5% below its estimated GF Value™ of $16.82.
GuruFocus considers Hengan International Group Co to be Modestly Undervalued.
Key valuation signals for HEGIY:
Gross Margin %: 35.47% (near median its 10-year median of 37.79)
GF Value™: $16.82 vs. price of $14.55 (13.5% below fair value)
Industry Position: 34.6% above the Consumer Packaged Goods median (#644 of 1897)
No single metric tells the full story. See the HEGIY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengan International Group Co Business Description
Hengan International is a leading producer of personal-care products in China. Its business comprises tissue paper products (close to 60% of sales), sanitary napkins (26% of sales), disposable diapers (5% of sales), and others.
64GF Score
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