Hengdeli HoldingsHENGY 38 Gross Margin % is 29.60% as of Dec. 2025, which is 89% above its 10-year median of 15.68. GuruFocus rates HENGY with a GF Score™ of 38/100 and a GF Value™ of $0.18 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 512 Conglomerates companies, Hengdeli Holdings ranks worse than 51.76% on this metric.
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
Hengdeli Holdings had a gross margin of 29.60% 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.
Hengdeli Holdings Gross Margin % Related Terms
Hengdeli Holdings Gross Margin % Historical Data
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The historical data trend for Hengdeli Holdings'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 Conglomerates subindustry, Hengdeli Holdings'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.
Hengdeli Holdings Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hengdeli Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hengdeli Holdings'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.
Hengdeli Holdings (HENGY) has a Gross Margin % of 29.60% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hengdeli Holdings and its competitors. This is 89% above median its historical median of 15.68. According to the industry distribution chart, Hengdeli Holdings ranks #265 out of 512 companies in the Conglomerates industry, placing it in the top 51.8%.
Is Hengdeli Holdings' Gross Margin % too high?
Hengdeli Holdings' current Gross Margin % of 29.60% is 89% above median its 10-year median of 15.68. The Conglomerates industry median Gross Margin % is 25.91. Hengdeli Holdings' value of 29.60% is 14.3% above this industry median. Based on the distribution chart, Hengdeli Holdings ranks #265 out of 512 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Hengdeli Holdings has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hengdeli Holdings' Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hengdeli Holdings ranks #265 out of 512 companies for Gross Margin %. This places Hengdeli Holdings in the lower half of its industry. The industry median Gross Margin % is 25.91. Hengdeli Holdings' value of 29.60% is 14.3% above this benchmark. While the company's 10-year median is 15.68 vs. the industry median of 25.91, Hengdeli Holdings 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.91, based on 512 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. Hengdeli Holdings's current Gross Margin % of 29.60% is 14.3% 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 Hengdeli Holdings and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengdeli Holdings's current Gross Margin % is 29.60%, which is 89% above median its own 10-year median of 15.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengdeli Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hengdeli Holdings (HENGY) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.18, compared to a current price of $0.79 — trading 339.5% above its estimated fair value. The current Gross Margin % is 29.60%, which is 89% above median its 10-year median of 15.68 and 14.3% above the Conglomerates industry median of 25.91. Hengdeli Holdings' overall GF Score™ is 38/100 with 2 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 Hengdeli Holdings (HENGY), the current Gross Margin % is 29.60% 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 Hengdeli Holdings (HENGY) Overvalued in 2026?
Based on GuruFocus' analysis, Hengdeli Holdings stock appears to be overvalued.
The current stock price of $0.79 is trading 339.5% above its estimated GF Value™ of $0.18.
GuruFocus considers Hengdeli Holdings to be Significantly Overvalued.
Key valuation signals for HENGY:
Gross Margin %: 29.60% (89% above median its 10-year median of 15.68)
GF Value™: $0.18 vs. price of $0.79 (339.5% above fair value)
Industry Position: 14.3% above the Conglomerates median (#265 of 512)
No single metric tells the full story. See the HENGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengdeli Holdings Ltd is predominantly focused on the manufacturing of high-end consuming accessories, the construction of high-end consuming service platforms, international commodity trading, and its related supply chain services. The operating segments of the company are: High-end consuming accessories, which is engaged in the manufacturing of watch accessories, and shop design and decoration services business; and the Commodity trading segment, which is engaged in the trading of iron ore and coal. A majority of its revenue is generated from the High-end consuming accessories segment. Geographically, the company generates maximum revenue from Mainland China and the rest from Hong Kong.
38GF Score
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