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Capital Finance Holdings (HKSE:08239) 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
Capital Finance Holdings had a gross margin of N/A% 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.
Capital Finance Holdings Gross Margin % Related Terms
Capital Finance 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:08239 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Capital Finance 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.
Capital Finance Holdings Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Capital Finance Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Capital Finance 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.
Capital Finance Holdings (HKSE:08239) has a Gross Margin % of 0.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Capital Finance Holdings and its competitors. Over the past decade, Capital Finance Holdings' Gross Margin % has ranged from 58.41 to 99.90. According to the industry distribution chart, Capital Finance Holdings ranks #167 out of 390 companies in the Credit Services industry, placing it in the top 42.8%.
Is Capital Finance Holdings' Gross Margin % too high?
Capital Finance Holdings' current Gross Margin % is 0.00%. Over the past 10 years, this metric has ranged from a low of 58.41 to a high of 99.90. Based on the distribution chart, Capital Finance Holdings ranks #167 out of 390 companies in the Credit Services industry, which is above the industry midpoint. Overall, Capital Finance Holdings has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital Finance Holdings' Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Capital Finance Holdings ranks #167 out of 390 companies for Gross Margin %. This puts Capital Finance Holdings in the upper half of its industry. The industry median Gross Margin % is 51.16. Historically, Capital Finance Holdings' own Gross Margin % has ranged from 58.41 to 99.90 over the past decade. 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.16, based on 390 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. 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 Capital Finance Holdings and its competitors. For the Credit Services industry, the median Gross Margin % is 51.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Finance Holdings's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Finance Holdings stock overvalued right now?
Based on GuruFocus' analysis, Capital Finance Holdings (HKSE:08239) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.50, compared to a current price of HK$20.34 — trading 3968% above its estimated fair value. The current Gross Margin % is 0.00%. Capital Finance Holdings' overall GF Score™ is 34/100 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 Capital Finance Holdings (HKSE:08239), the current Gross Margin % is 0.00% 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 Capital Finance Holdings (HKSE:08239) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Finance Holdings stock appears to be overvalued.
The current stock price of HK$20.34 is trading 3968% above its estimated GF Value™ of HK$0.50.
GuruFocus considers Capital Finance Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:08239:
Gross Margin %: 0.00%
GF Value™: HK$0.50 vs. price of HK$20.34 (3968% above fair value)
No single metric tells the full story. See the HKSE:08239 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Finance Holdings Ltd is an investment holding company. Along with its subsidiaries, it provides short-term financing services in the Peoples Republic of China (PRC) and Hong Kong. Short-term financing comprises pawn loan services, micro-financing services, entrusted loan business, and financial consultancy business. Geographically, it derives maximum revenue from Hong Kong, followed by the PRC.
34GF Score
Get the complete analysis for HKSE:08239
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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