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Easy Smart Group HoldingsHKSE:02442 -0.45%68 Gross Margin % is 4.89% as of Dec. 2025, which is 80% below its 10-year median of 24.67. GuruFocus rates HKSE:02442 with a GF Score™ of 68/100 and a GF Value™ of HK$1.09 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,005 Business Services companies, Easy Smart Group Holdings ranks worse than 94.63% on this metric.
Easy Smart Group Holdings (HKSE:02442) 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
Easy Smart Group Holdings had a gross margin of 4.89% 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.
Easy Smart Group Holdings Gross Margin % Related Terms
Easy Smart Group 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.
HKSE:02442 vs ALLE, MSA, ADT: Gross Margin % Comparison
For the Security & Protection Services subindustry, Easy Smart Group 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.
Easy Smart Group Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Easy Smart Group Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Easy Smart Group 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.
Easy Smart Group Holdings (HKSE:02442) has a Gross Margin % of 4.89% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Easy Smart Group Holdings and its competitors. This is 80% below median its historical median of 24.67. Over the past decade, Easy Smart Group Holdings' Gross Margin % has ranged from 6.98 to 29.26. According to the industry distribution chart, Easy Smart Group Holdings ranks #951 out of 1005 companies in the Business Services industry, placing it in the top 94.6%.
Is Easy Smart Group Holdings' Gross Margin % too high?
Easy Smart Group Holdings' current Gross Margin % of 4.89% is 80% below median its 10-year median of 24.67. Over the past 10 years, this metric has ranged from a low of 6.98 to a high of 29.26. The Business Services industry median Gross Margin % is 34.53. Easy Smart Group Holdings' value of 4.89% is 85.8% below this industry median. Based on the distribution chart, Easy Smart Group Holdings ranks #951 out of 1005 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Easy Smart Group Holdings has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Easy Smart Group Holdings' Gross Margin % compare to ALLE and MSA?
According to the Business Services industry distribution chart, Easy Smart Group Holdings ranks #951 out of 1005 companies for Gross Margin %. This places Easy Smart Group Holdings in the lower half of its industry. The industry median Gross Margin % is 34.53. Easy Smart Group Holdings' value of 4.89% is 85.8% below this benchmark. Historically, Easy Smart Group Holdings' own Gross Margin % has ranged from 6.98 to 29.26 over the past decade. While the company's 10-year median is 24.67 vs. the industry median of 34.53, Easy Smart Group 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.53, based on 1,005 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. Easy Smart Group Holdings's current Gross Margin % of 4.89% is 85.8% 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 Easy Smart Group Holdings and its competitors. For the Business Services industry, the median Gross Margin % is 34.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Easy Smart Group Holdings's current Gross Margin % is 4.89%, which is 80% below median its own 10-year median of 24.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Easy Smart Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Easy Smart Group Holdings (HKSE:02442) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.09, compared to a current price of HK$66.55 — trading 6005.5% above its estimated fair value. The current Gross Margin % is 4.89%, which is 80% below median its 10-year median of 24.67 and 85.8% below the Business Services industry median of 34.53. Easy Smart Group Holdings' overall GF Score™ is 68/100 with 7 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 Easy Smart Group Holdings (HKSE:02442), the current Gross Margin % is 4.89% 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 Easy Smart Group Holdings (HKSE:02442) Overvalued in 2026?
Based on GuruFocus' analysis, Easy Smart Group Holdings stock appears to be overvalued.
The current stock price of HK$66.55 is trading 6005.5% above its estimated GF Value™ of HK$1.09.
GuruFocus considers Easy Smart Group Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02442:
Gross Margin %: 4.89% (80% below median its 10-year median of 24.67)
GF Value™: HK$1.09 vs. price of HK$66.55 (6005.5% above fair value)
Industry Position: 85.8% below the Business Services median (#951 of 1005)
No single metric tells the full story. See the HKSE:02442 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Easy Smart Group Holdings Ltd operates as a subcontractor specializing in passive fire protection works in Hong Kong. Its passive fire protection works generally involve the design, selection, procurement, and installation of appropriate materials and components in a building to reduce or prevent the spread and effects of fire, heat, or smoke without requiring detection or activation upon detection. The Group has two principal activities: the provision of passive fire protection works and the provision of passive fire protection information services. The company generates key revenue from Public sector projects.
68GF Score
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