Hua Hong Grace SemiconductorHHUSF 64 Gross Margin % is 13.02% as of Mar. 2026, which is 55% below its 10-year median of 28.99. GuruFocus rates HHUSF with a GF Score™ of 64/100 and a GF Value™ of $3.27 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,009 Semiconductors companies, Hua Hong Grace Semiconductor ranks worse than 81.57% on this metric.
Hua Hong Grace Semiconductor (OTCPK:HHUSF) 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
Hua Hong Grace Semiconductor had a gross margin of 13.02% for the quarter that ended in Mar. 2026 => 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.
Hua Hong Grace Semiconductor Gross Margin % Related Terms
Hua Hong Grace Semiconductor 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.
HHUSF vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Hua Hong Grace Semiconductor'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.
Hua Hong Grace Semiconductor Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Hua Hong Grace Semiconductor's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hua Hong Grace Semiconductor'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.
Hua Hong Grace Semiconductor (HHUSF) has a Gross Margin % of 13.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hua Hong Grace Semiconductor and its competitors. This is 55% below median its historical median of 28.99. Over the past decade, Hua Hong Grace Semiconductor's Gross Margin % has ranged from 10.24 to 34.08. According to the industry distribution chart, Hua Hong Grace Semiconductor ranks #823 out of 1009 companies in the Semiconductors industry, placing it in the top 81.6%.
Is Hua Hong Grace Semiconductor's Gross Margin % too high?
Hua Hong Grace Semiconductor's current Gross Margin % of 13.02% is 55% below median its 10-year median of 28.99. Over the past 10 years, this metric has ranged from a low of 10.24 to a high of 34.08. The Semiconductors industry median Gross Margin % is 29.61. Hua Hong Grace Semiconductor's value of 13.02% is 56% below this industry median. Based on the distribution chart, Hua Hong Grace Semiconductor ranks #823 out of 1009 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Hua Hong Grace Semiconductor has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hua Hong Grace Semiconductor's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Hua Hong Grace Semiconductor ranks #823 out of 1009 companies for Gross Margin %. This places Hua Hong Grace Semiconductor in the lower half of its industry. The industry median Gross Margin % is 29.61. Hua Hong Grace Semiconductor's value of 13.02% is 56% below this benchmark. Historically, Hua Hong Grace Semiconductor's own Gross Margin % has ranged from 10.24 to 34.08 over the past decade. While the company's 10-year median is 28.99 vs. the industry median of 29.61, Hua Hong Grace Semiconductor 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 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. Hua Hong Grace Semiconductor's current Gross Margin % of 13.02% is 56% 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 Hua Hong Grace Semiconductor and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hua Hong Grace Semiconductor's current Gross Margin % is 13.02%, which is 55% below median its own 10-year median of 28.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hua Hong Grace Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Hua Hong Grace Semiconductor (HHUSF) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.27, compared to a current price of $19.45 — trading 494.8% above its estimated fair value. The current Gross Margin % is 13.02%, which is 55% below median its 10-year median of 28.99 and 56% below the Semiconductors industry median of 29.61. Hua Hong Grace Semiconductor's overall GF Score™ is 64/100 with 9 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 Hua Hong Grace Semiconductor (HHUSF), the current Gross Margin % is 13.02% as of Mar. 2026. 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 Hua Hong Grace Semiconductor (HHUSF) Overvalued in 2026?
Based on GuruFocus' analysis, Hua Hong Grace Semiconductor stock appears to be overvalued.
The current stock price of $19.45 is trading 494.8% above its estimated GF Value™ of $3.27.
GuruFocus considers Hua Hong Grace Semiconductor to be Significantly Overvalued.
Key valuation signals for HHUSF:
Gross Margin %: 13.02% (55% below median its 10-year median of 28.99)
GF Value™: $3.27 vs. price of $19.45 (494.8% above fair value)
Industry Position: 56% below the Semiconductors median (#823 of 1009)
No single metric tells the full story. See the HHUSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hua Hong Semiconductor, or Hua Hong, is the second-largest Chinese foundry and the seventh-largest globally. Its current form is a result of an intragroup restructuring completed in 2013. Hua Hong is headquartered in Shanghai with another plant in Wuxi, China, and has sales offices in Japan, Taiwan, and the US. It employs more than 7,628 employees as of Dec. 31, 2025. Hua Hong's products are used on smartphones, PCs, for the Internet of Things, data centers, and for automotive and industrial purposes, among others, but it focuses on more mature process technologies.
64GF Score
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