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G & M HoldingsHKSE:06038 +5.41%62 Gross Margin % is 27.35% as of Dec. 2025, which is 6% above its 10-year median of 25.72. GuruFocus rates HKSE:06038 with a GF Score™ of 62/100 and a GF Value™ of HK$0.19 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,732 Construction companies, G & M Holdings ranks better than 61.37% on this metric.
G & M Holdings (HKSE:06038) 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
G & M Holdings had a gross margin of 27.35% 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.
G & M Holdings Gross Margin % Related Terms
G & M Holdings Gross Margin % Historical Data
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The historical data trend for G & M 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:06038 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, G & M 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.
G & M Holdings Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, G & M Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where G & M 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.
G & M Holdings (HKSE:06038) has a Gross Margin % of 27.35% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on G & M Holdings and its competitors. This is near median its historical median of 25.72. Over the past decade, G & M Holdings' Gross Margin % has ranged from 21.53 to 33.05. According to the industry distribution chart, G & M Holdings ranks #669 out of 1732 companies in the Construction industry, placing it in the top 38.6%.
Is G & M Holdings' Gross Margin % too high?
G & M Holdings' current Gross Margin % of 27.35% is near median its 10-year median of 25.72. Over the past 10 years, this metric has ranged from a low of 21.53 to a high of 33.05. The Construction industry median Gross Margin % is 20.66. G & M Holdings' value of 27.35% is 32.4% above this industry median. Based on the distribution chart, G & M Holdings ranks #669 out of 1732 companies in the Construction industry, which is above the industry midpoint. Overall, G & M Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does G & M Holdings' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, G & M Holdings ranks #669 out of 1732 companies for Gross Margin %. This puts G & M Holdings in the upper half of its industry. The industry median Gross Margin % is 20.66. G & M Holdings' value of 27.35% is 32.4% above this benchmark. Historically, G & M Holdings' own Gross Margin % has ranged from 21.53 to 33.05 over the past decade. While the company's 10-year median is 25.72 vs. the industry median of 20.66, G & M 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 20.66, based on 1,732 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. G & M Holdings's current Gross Margin % of 27.35% is 32.4% 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 G & M Holdings and its competitors. For the Construction industry, the median Gross Margin % is 20.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. G & M Holdings's current Gross Margin % is 27.35%, which is near median its own 10-year median of 25.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is G & M Holdings stock overvalued right now?
Based on GuruFocus' analysis, G & M Holdings (HKSE:06038) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.19, compared to a current price of HK$0.39 — trading 105.3% above its estimated fair value. The current Gross Margin % is 27.35%, which is near median its 10-year median of 25.72 and 32.4% above the Construction industry median of 20.66. G & M Holdings' overall GF Score™ is 62/100 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 G & M Holdings (HKSE:06038), the current Gross Margin % is 27.35% 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 G & M Holdings (HKSE:06038) Overvalued in 2026?
Based on GuruFocus' analysis, G & M Holdings stock appears to be overvalued.
The current stock price of HK$0.39 is trading 105.3% above its estimated GF Value™ of HK$0.19.
GuruFocus considers G & M Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:06038:
Gross Margin %: 27.35% (near median its 10-year median of 25.72)
GF Value™: HK$0.19 vs. price of HK$0.39 (105.3% above fair value)
Industry Position: 32.4% above the Construction median (#669 of 1732)
No single metric tells the full story. See the HKSE:06038 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
G & M Holdings Ltd is an investment holding company engaged in construction business. The company provides one-stop design and builds solutions, as well as repairs and maintains services in relation to podium facade and curtain wall works in Hong Kong. The group operates in Hong Kong and the PRC. All of the group's revenue is derived from Hong Kong.
62GF Score
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