Highway HoldingsHIHO +7.24%52 Gross Margin % is 25.46% as of Dec. 2025, which is 15% below its 10-year median of 30.01. GuruFocus rates HIHO with a GF Score™ of 52/100 and a GF Value™ of $1.42 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,998 Industrial Products companies, Highway Holdings ranks worse than 58.74% 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
Highway Holdings had a gross margin of 25.46% 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.
Highway Holdings Gross Margin % Related Terms
Highway Holdings Gross Margin % Historical Data
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The historical data trend for Highway 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.
HIHO vs MTEN, OLOX, ATI: Gross Margin % Comparison
For the Metal Fabrication subindustry, Highway 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.
Highway Holdings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Highway Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Highway 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.
Highway Holdings (HIHO) has a Gross Margin % of 25.46% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Highway Holdings and its competitors. This is 15% below median its historical median of 30.01. Over the past decade, Highway Holdings' Gross Margin % has ranged from 23.55 to 35.18. According to the industry distribution chart, Highway Holdings ranks #1761 out of 2998 companies in the Industrial Products industry, placing it in the top 58.7%.
Is Highway Holdings' Gross Margin % too high?
Highway Holdings' current Gross Margin % of 25.46% is 15% below median its 10-year median of 30.01. Over the past 10 years, this metric has ranged from a low of 23.55 to a high of 35.18. The Industrial Products industry median Gross Margin % is 26.82. Highway Holdings' value of 25.46% is 5.1% below this industry median. Based on the distribution chart, Highway Holdings ranks #1761 out of 2998 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Highway Holdings has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Highway Holdings' Gross Margin % compare to MTEN and OLOX?
According to the Industrial Products industry distribution chart, Highway Holdings ranks #1761 out of 2998 companies for Gross Margin %. This places Highway Holdings in the lower half of its industry. The industry median Gross Margin % is 26.82. Highway Holdings' value of 25.46% is 5.1% below this benchmark. Historically, Highway Holdings' own Gross Margin % has ranged from 23.55 to 35.18 over the past decade. While the company's 10-year median is 30.01 vs. the industry median of 26.82, Highway Holdings 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,998 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. Highway Holdings's current Gross Margin % of 25.46% is 5.1% 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 Highway Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Highway Holdings's current Gross Margin % is 25.46%, which is 15% below median its own 10-year median of 30.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highway Holdings stock overvalued right now?
Based on GuruFocus' analysis, Highway Holdings (HIHO) is currently considered Possible Value Trap. The stock's GF Value™ is $1.42, compared to a current price of $0.88 — trading 38.4% below its estimated fair value. The current Gross Margin % is 25.46%, which is 15% below median its 10-year median of 30.01 and 5.1% below the Industrial Products industry median of 26.82. Highway Holdings' overall GF Score™ is 52/100 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 Highway Holdings (HIHO), the current Gross Margin % is 25.46% 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 Highway Holdings (HIHO) Overvalued in 2026?
Based on GuruFocus' analysis, Highway Holdings stock appears to be undervalued.
The current stock price of $0.88 is trading 38.4% below its estimated GF Value™ of $1.42.
GuruFocus considers Highway Holdings to be Possible Value Trap.
Key valuation signals for HIHO:
Gross Margin %: 25.46% (15% below median its 10-year median of 30.01)
GF Value™: $1.42 vs. price of $0.88 (38.4% below fair value)
Industry Position: 5.1% below the Industrial Products median (#1761 of 2998)
No single metric tells the full story. See the HIHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highway Holdings Ltd is a holding company. Along with its subsidiaries, it operates as a fully integrated manufacturer of high-quality metal, plastic, electric and electronic components, subassemblies, and finished products for OEMs and contract manufacturers. The manufacturing services offered by the group include metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards. Its reportable business segments are metal stamping and mechanical OEM operations, which derive maximum revenue, and electric OEM operations. Geographically, the group generates maximum revenue from Europe, and the rest from North America, Hong Kong and China, and other Asian countries.
52GF Score
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