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MexanHKSE:00022 -1.50%54 Gross Margin % is 34.26% as of Sep. 2025, which is 24% below its 10-year median of 44.98. GuruFocus rates HKSE:00022 with a GF Score™ of 54/100 and a GF Value™ of HK$4.04 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 395 Building Materials companies, Mexan ranks better than 82.28% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Mexan's Gross Profit for the
six
months ended in Sep. 2025 was HK$8.59 Mil. Mexan's Revenue for the
six
months ended in Sep. 2025 was HK$25.08 Mil. Therefore, Mexan's Gross Margin % for the quarter that ended in Sep. 2025 was 34.26%.
Warning Sign:
Mexan Ltd gross margin has been in long-term decline. The average rate of decline per year is -15.2%.
The historical rank and industry rank for Mexan's Gross Margin % or its related term are showing as below:
HKSE:00022'
s Gross Margin % Range Over the Past 10 Years
Min: 18.43 Med: 44.98 Max: 81.43
Current: 42.66
During the past 13 years, the highestGross Margin % of Mexan was 81.43%. The lowest was 18.43%. And the median was 44.98%.
HKSE:00022's Gross Margin % is ranked better than 82.28% of 395
companies
in the Building Materials industry
Industry Median: 26.18
vs HKSE:00022: 42.66
Mexan had a gross margin of 34.26% for the quarter that ended in Sep. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Mexan was -15.20% per year.
Mexan (HKSE:00022) 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
Mexan had a gross margin of 34.26% for the quarter that ended in Sep. 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.
Mexan Gross Margin % Related Terms
Mexan Gross Margin % Historical Data
* Premium members only.
The historical data trend for Mexan'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.
HKSE:00022 vs CRH, VMC, MLM: Gross Margin % Comparison
For the Building Materials subindustry, Mexan'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.
Mexan Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Mexan's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mexan'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.
Mexan (HKSE:00022) has a Gross Margin % of 34.26% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Mexan and its competitors. This is 24% below median its historical median of 44.98. Over the past decade, Mexan's Gross Margin % has ranged from 18.43 to 81.43. According to the industry distribution chart, Mexan ranks #70 out of 395 companies in the Building Materials industry, placing it in the top 17.7%.
Is Mexan's Gross Margin % too high?
Mexan's current Gross Margin % of 34.26% is 24% below median its 10-year median of 44.98. Over the past 10 years, this metric has ranged from a low of 18.43 to a high of 81.43. The Building Materials industry median Gross Margin % is 26.18. Mexan's value of 34.26% is 30.9% above this industry median. Based on the distribution chart, Mexan ranks #70 out of 395 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Mexan has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Mexan's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Mexan ranks #70 out of 395 companies for Gross Margin %. This places Mexan in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.18. Mexan's value of 34.26% is 30.9% above this benchmark. Historically, Mexan's own Gross Margin % has ranged from 18.43 to 81.43 over the past decade. While the company's 10-year median is 44.98 vs. the industry median of 26.18, Mexan 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.18, based on 395 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. Mexan's current Gross Margin % of 34.26% is 30.9% 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 Mexan and its competitors. For the Building Materials industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mexan's current Gross Margin % is 34.26%, which is 24% below median its own 10-year median of 44.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mexan stock overvalued right now?
Based on GuruFocus' analysis, Mexan (HKSE:00022) is currently considered Possible Value Trap. The stock's GF Value™ is HK$4.04, compared to a current price of HK$1.97 — trading 51.2% below its estimated fair value. The current Gross Margin % is 34.26%, which is 24% below median its 10-year median of 44.98 and 30.9% above the Building Materials industry median of 26.18. Mexan's overall GF Score™ is 54/100 with 8 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 Mexan (HKSE:00022), the current Gross Margin % is 34.26% as of Sep. 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 Mexan (HKSE:00022) Overvalued in 2026?
Based on GuruFocus' analysis, Mexan stock appears to be undervalued.
The current stock price of HK$1.97 is trading 51.2% below its estimated GF Value™ of HK$4.04.
GuruFocus considers Mexan to be Possible Value Trap.
Key valuation signals for HKSE:00022:
Gross Margin %: 34.26% (24% below median its 10-year median of 44.98)
GF Value™: HK$4.04 vs. price of HK$1.97 (51.2% below fair value)
Industry Position: 30.9% above the Building Materials median (#70 of 395)
No single metric tells the full story. See the HKSE:00022 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mexan Ltd is a Hong Kong-based company. It is involved in the lodging business sector. The principal activities of the group include property investment, hotel operation, and investment holding. The company has reportable segment such: Trading of building materials and fit-out construction service, including supply of furniture and building materials and provisions of the design and fit-out construction service. Geographically the company operates in Hong Kong and Macau.
54GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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