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Future MachineHKSE:01401 +7.66%70 Gross Margin % is 8.22% as of Dec. 2025, which is 6% below its 10-year median of 8.73. GuruFocus rates HKSE:01401 with a GF Score™ of 70/100 and a GF Value™ of HK$2.12 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,452 Hardware companies, Future Machine ranks worse than 87.93% 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
Future Machine had a gross margin of 8.22% 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.
Future Machine Gross Margin % Related Terms
Future Machine Gross Margin % Historical Data
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The historical data trend for Future Machine'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 Consumer Electronics subindustry, Future Machine'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.
Future Machine Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Future Machine's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Future Machine'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.
Future Machine (HKSE:01401) has a Gross Margin % of 8.22% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Future Machine and its competitors. This is near median its historical median of 8.73. Over the past decade, Future Machine's Gross Margin % has ranged from 7.29 to 14.04. According to the industry distribution chart, Future Machine ranks #2156 out of 2452 companies in the Hardware industry, placing it in the top 87.9%.
Is Future Machine's Gross Margin % too high?
Future Machine's current Gross Margin % of 8.22% is near median its 10-year median of 8.73. Over the past 10 years, this metric has ranged from a low of 7.29 to a high of 14.04. The Hardware industry median Gross Margin % is 24.49. Future Machine's value of 8.22% is 66.4% below this industry median. Based on the distribution chart, Future Machine ranks #2156 out of 2452 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Future Machine has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Future Machine's Gross Margin % compare to AAPL?
According to the Hardware industry distribution chart, Future Machine ranks #2156 out of 2452 companies for Gross Margin %. This places Future Machine in the lower half of its industry. The industry median Gross Margin % is 24.49. Future Machine's value of 8.22% is 66.4% below this benchmark. Historically, Future Machine's own Gross Margin % has ranged from 7.29 to 14.04 over the past decade. While the company's 10-year median is 8.73 vs. the industry median of 24.49, Future Machine 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.49, based on 2,452 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. Future Machine's current Gross Margin % of 8.22% is 66.4% 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 Future Machine and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Future Machine's current Gross Margin % is 8.22%, which is near median its own 10-year median of 8.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Future Machine stock overvalued right now?
Based on GuruFocus' analysis, Future Machine (HKSE:01401) is currently considered Possible Value Trap. The stock's GF Value™ is HK$2.12, compared to a current price of HK$0.24 — trading 88.7% below its estimated fair value. The current Gross Margin % is 8.22%, which is near median its 10-year median of 8.73 and 66.4% below the Hardware industry median of 24.49. Future Machine's overall GF Score™ is 70/100 with 6 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 Future Machine (HKSE:01401), the current Gross Margin % is 8.22% 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 Future Machine (HKSE:01401) Overvalued in 2026?
Based on GuruFocus' analysis, Future Machine stock appears to be undervalued.
The current stock price of HK$0.24 is trading 88.7% below its estimated GF Value™ of HK$2.12.
GuruFocus considers Future Machine to be Possible Value Trap.
Key valuation signals for HKSE:01401:
Gross Margin %: 8.22% (near median its 10-year median of 8.73)
GF Value™: HK$2.12 vs. price of HK$0.24 (88.7% below fair value)
Industry Position: 66.4% below the Hardware median (#2156 of 2452)
No single metric tells the full story. See the HKSE:01401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Future Machine Ltd is an investment holding company. The principal activities of its subsidiaries are designing, manufacturing and sales of mobile phones and printed circuit board assembly products (PCBA) and Internet of things (IoT) related products and investment holding. It generates a majority of its revenue from the sale of feature phones and smartphones. Geographically, the group derives its key revenue from the People's Republic of China (PRC), and also has a presence in India, Pakistan, the United States of America, Bangladesh, Algeria, Yemen, Dubai, and other markets.
70GF Score
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