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Solis HoldingsHKSE:02227 -5.00%46 Gross Margin % is 34.84% as of Dec. 2025, which is 98% above its 10-year median of 17.63. GuruFocus rates HKSE:02227 with a GF Score™ of 46/100 and a GF Value™ of HK$0.11 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,729 Construction companies, Solis Holdings ranks worse than 54.14% on this metric.
Solis Holdings (HKSE:02227) 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
Solis Holdings had a gross margin of 34.84% 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.
Solis Holdings Gross Margin % Related Terms
Solis Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Solis 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.
HKSE:02227 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Solis 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.
Solis Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Solis Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Solis 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.
Solis Holdings (HKSE:02227) has a Gross Margin % of 34.84% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Solis Holdings and its competitors. This is 98% above median its historical median of 17.63. According to the industry distribution chart, Solis Holdings ranks #936 out of 1729 companies in the Construction industry, placing it in the top 54.1%.
Is Solis Holdings' Gross Margin % too high?
Solis Holdings' current Gross Margin % of 34.84% is 98% above median its 10-year median of 17.63. The Construction industry median Gross Margin % is 20.63. Solis Holdings' value of 34.84% is 68.9% above this industry median. Based on the distribution chart, Solis Holdings ranks #936 out of 1729 companies in the Construction industry, which is below the industry midpoint. Overall, Solis Holdings has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Solis Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Solis Holdings ranks #936 out of 1729 companies for Gross Margin %. This places Solis Holdings in the lower half of its industry. The industry median Gross Margin % is 20.63. Solis Holdings' value of 34.84% is 68.9% above this benchmark. While the company's 10-year median is 17.63 vs. the industry median of 20.63, Solis Holdings 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 Construction company?
The median Gross Margin % among Construction companies is 20.63, based on 1,729 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. Solis Holdings's current Gross Margin % of 34.84% is 68.9% 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 Solis Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solis Holdings's current Gross Margin % is 34.84%, which is 98% above median its own 10-year median of 17.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solis Holdings stock overvalued right now?
Based on GuruFocus' analysis, Solis Holdings (HKSE:02227) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.11, compared to a current price of HK$0.38 — trading 245.5% above its estimated fair value. The current Gross Margin % is 34.84%, which is 98% above median its 10-year median of 17.63 and 68.9% above the Construction industry median of 20.63. Solis Holdings' overall GF Score™ is 46/100 with 4 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 Solis Holdings (HKSE:02227), the current Gross Margin % is 34.84% 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 Solis Holdings (HKSE:02227) Overvalued in 2026?
Based on GuruFocus' analysis, Solis Holdings stock appears to be overvalued.
The current stock price of HK$0.38 is trading 245.5% above its estimated GF Value™ of HK$0.11.
GuruFocus considers Solis Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02227:
Gross Margin %: 34.84% (98% above median its 10-year median of 17.63)
GF Value™: HK$0.11 vs. price of HK$0.38 (245.5% above fair value)
Industry Position: 68.9% above the Construction median (#936 of 1729)
No single metric tells the full story. See the HKSE:02227 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solis Holdings Ltd is a design and build mechanical and electrical (M&E) engineering contractor in Singapore. The group provides services including the design, building, and installation of M&E systems, as well as the installation and maintenance of street lighting and commuter facilities equipment. It specialises in electrical engineering works for new building developments and major additions and alterations (A&A) projects, including private residential, mixed residential and commercial developments, and institutional buildings. The group has two reportable segments: construction contracts and maintenance contracts. All of the group's revenue is derived from Singapore.
46GF Score
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