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LFG Investment HoldingsHKSE:03938 -0.16%54 Gross Margin % is 51.73% as of Mar. 2026, which is 5% below its 10-year median of 54.46. GuruFocus rates HKSE:03938 with a GF Score™ of 54/100 and a GF Value™ of HK$0.32 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 619 Capital Markets companies, LFG Investment Holdings ranks better than 53.8% 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
LFG Investment Holdings had a gross margin of 51.73% for the quarter that ended in Mar. 2026 => Durable 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.
LFG Investment Holdings Gross Margin % Related Terms
LFG Investment 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:03938 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, LFG Investment 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.
LFG Investment Holdings Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LFG Investment Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LFG Investment 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.
LFG Investment Holdings (HKSE:03938) has a Gross Margin % of 51.73% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LFG Investment Holdings and its competitors. This is near median its historical median of 54.46. According to the industry distribution chart, LFG Investment Holdings ranks #286 out of 619 companies in the Capital Markets industry, placing it in the top 46.2%.
Is LFG Investment Holdings' Gross Margin % too high?
LFG Investment Holdings' current Gross Margin % of 51.73% is near median its 10-year median of 54.46. The Capital Markets industry median Gross Margin % is 48.67. LFG Investment Holdings' value of 51.73% is 6.3% above this industry median. Based on the distribution chart, LFG Investment Holdings ranks #286 out of 619 companies in the Capital Markets industry, which is above the industry midpoint. Overall, LFG Investment Holdings has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LFG Investment Holdings' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, LFG Investment Holdings ranks #286 out of 619 companies for Gross Margin %. This puts LFG Investment Holdings in the upper half of its industry. The industry median Gross Margin % is 48.67. LFG Investment Holdings' value of 51.73% is 6.3% above this benchmark. While the company's 10-year median is 54.46 vs. the industry median of 48.67, LFG Investment 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.67, based on 619 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. LFG Investment Holdings's current Gross Margin % of 51.73% is 6.3% 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 LFG Investment Holdings and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LFG Investment Holdings's current Gross Margin % is 51.73%, which is near median its own 10-year median of 54.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LFG Investment Holdings stock overvalued right now?
Based on GuruFocus' analysis, LFG Investment Holdings (HKSE:03938) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.32, compared to a current price of HK$3.04 — trading 848.4% above its estimated fair value. The current Gross Margin % is 51.73%, which is near median its 10-year median of 54.46 and 6.3% above the Capital Markets industry median of 48.67. LFG Investment Holdings' overall GF Score™ is 54/100 with 1 warning sign 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 LFG Investment Holdings (HKSE:03938), the current Gross Margin % is 51.73% as of Mar. 2026. 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 LFG Investment Holdings (HKSE:03938) Overvalued in 2026?
Based on GuruFocus' analysis, LFG Investment Holdings stock appears to be overvalued.
The current stock price of HK$3.04 is trading 848.4% above its estimated GF Value™ of HK$0.32.
GuruFocus considers LFG Investment Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:03938:
Gross Margin %: 51.73% (near median its 10-year median of 54.46)
GF Value™: HK$0.32 vs. price of HK$3.04 (848.4% above fair value)
Industry Position: 6.3% above the Capital Markets median (#286 of 619)
No single metric tells the full story. See the HKSE:03938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LFG Investment Holdings Ltd is a financial services provider in Hong Kong, that engages in the provision of corporate finance advisory services; underwriting services; securities dealing and brokerage services; securities financing services; and asset management services. The company generates maximum revenue from Corporate finance advisory services.
54GF Score
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