Fountain Set (Holdings)HKSE:00420 50 Gross Margin % is 15.09% as of Dec. 2025, which is 29% above its 10-year median of 11.74. GuruFocus rates HKSE:00420 with a GF Score™ of 50/100 and a GF Value™ of HK$0.53 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,020 Manufacturing - Apparel & Accessories companies, Fountain Set (Holdings) ranks worse than 76.96% on this metric.
HKSE:00420's Gross Margin % is ranked worse than 76.96% of 1020
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.51
vs HKSE:00420: 13.52
Fountain Set (Holdings) had a gross margin of 15.09% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fountain Set (Holdings) was -0.20% per year.
Fountain Set (Holdings) (HKSE:00420) 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
Fountain Set (Holdings) had a gross margin of 15.09% for the quarter that ended in Dec. 2025 => 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.
Fountain Set (Holdings) Gross Margin % Related Terms
Fountain Set (Holdings) 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.
Fountain Set (Holdings) Gross Margin % Competitor Comparison
For the Textile Manufacturing subindustry, Fountain Set (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.
Fountain Set (Holdings) Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Fountain Set (Holdings)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fountain Set (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.
Fountain Set (Holdings) (HKSE:00420) has a Gross Margin % of 15.09% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Fountain Set (Holdings) and its competitors. This is 29% above median its historical median of 11.74. Over the past decade, Fountain Set (Holdings)'s Gross Margin % has ranged from 7.25 to 13.52. According to the industry distribution chart, Fountain Set (Holdings) ranks #785 out of 1020 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 77%.
Is Fountain Set (Holdings)'s Gross Margin % too high?
Fountain Set (Holdings)'s current Gross Margin % of 15.09% is 29% above median its 10-year median of 11.74. Over the past 10 years, this metric has ranged from a low of 7.25 to a high of 13.52. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.51. Fountain Set (Holdings)'s value of 15.09% is 47.1% below this industry median. Based on the distribution chart, Fountain Set (Holdings) ranks #785 out of 1020 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Fountain Set (Holdings) has a GF Score™ of 50/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fountain Set (Holdings)'s Gross Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Fountain Set (Holdings) ranks #785 out of 1020 companies for Gross Margin %. This places Fountain Set (Holdings) in the lower half of its industry. The industry median Gross Margin % is 28.51. Fountain Set (Holdings)'s value of 15.09% is 47.1% below this benchmark. Historically, Fountain Set (Holdings)'s own Gross Margin % has ranged from 7.25 to 13.52 over the past decade. While the company's 10-year median is 11.74 vs. the industry median of 28.51, Fountain Set (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 a Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.51, based on 1,020 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. Fountain Set (Holdings)'s current Gross Margin % of 15.09% is 47.1% 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 Fountain Set (Holdings) and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fountain Set (Holdings)'s current Gross Margin % is 15.09%, which is 29% above median its own 10-year median of 11.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fountain Set (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Fountain Set (Holdings) (HKSE:00420) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.53, compared to a current price of HK$0.66 — trading 24.5% above its estimated fair value. The current Gross Margin % is 15.09%, which is 29% above median its 10-year median of 11.74 and 47.1% below the Manufacturing - Apparel & Accessories industry median of 28.51. Fountain Set (Holdings)'s overall GF Score™ is 50/100 with 5 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 Fountain Set (Holdings) (HKSE:00420), the current Gross Margin % is 15.09% 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 Fountain Set (Holdings) (HKSE:00420) Overvalued in 2026?
Based on GuruFocus' analysis, Fountain Set (Holdings) stock appears to be overvalued.
The current stock price of HK$0.66 is trading 24.5% above its estimated GF Value™ of HK$0.53.
GuruFocus considers Fountain Set (Holdings) to be Modestly Overvalued.
Key valuation signals for HKSE:00420:
Gross Margin %: 15.09% (29% above median its 10-year median of 11.74)
GF Value™: HK$0.53 vs. price of HK$0.66 (24.5% above fair value)
Industry Position: 47.1% below the Manufacturing - Apparel & Accessories median (#785 of 1020)
No single metric tells the full story. See the HKSE:00420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fountain Set (Holdings) Ltd and its subsidiaries are circularly knitted fabric manufacturers. It provides vertically integrated operations in fabric knitting, dyeing, printing, and finishing. In addition, the group's product range also includes garments. The company supplies knitted fabric to garment manufacturers for apparel products like sportswear, casual wear, sleepwear, and innerwear. The operating segments of the company are the production and sales of dyed fabrics and yarns, and the Production and sales of garments. The group operates in Hong Kong, China, Taiwan, Korea, Sri Lanka, America, Europe, Vietnam and Others, of which maximum revenue is generated from The PRC.
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