Hammond Manufacturing CoHMFAF -1.37%89 Gross Margin % is 36.27% as of Mar. 2026, which is 16% above its 10-year median of 31.18. GuruFocus rates HMFAF with a GF Score™ of 89/100 and a GF Value™ of $8.18 (Modestly Overvalued). Among 2,998 Industrial Products companies, Hammond Manufacturing Co ranks better than 67.08% on this metric.
Hammond Manufacturing Co (OTCPK:HMFAF) 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
Hammond Manufacturing Co had a gross margin of 36.27% for the quarter that ended in Mar. 2026 => 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.
Hammond Manufacturing Co Gross Margin % Related Terms
Hammond Manufacturing Co 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.
For the Electrical Equipment & Parts subindustry, Hammond Manufacturing Co'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.
Hammond Manufacturing Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Manufacturing Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hammond Manufacturing Co'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.
Hammond Manufacturing Co (HMFAF) has a Gross Margin % of 36.27% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hammond Manufacturing Co and its competitors. This is 16% above median its historical median of 31.18. Over the past decade, Hammond Manufacturing Co's Gross Margin % has ranged from 28.35 to 37.12. According to the industry distribution chart, Hammond Manufacturing Co ranks #987 out of 2998 companies in the Industrial Products industry, placing it in the top 32.9%.
Is Hammond Manufacturing Co's Gross Margin % too high?
Hammond Manufacturing Co's current Gross Margin % of 36.27% is 16% above median its 10-year median of 31.18. Over the past 10 years, this metric has ranged from a low of 28.35 to a high of 37.12. The Industrial Products industry median Gross Margin % is 26.82. Hammond Manufacturing Co's value of 36.27% is 35.2% above this industry median. Based on the distribution chart, Hammond Manufacturing Co ranks #987 out of 2998 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Hammond Manufacturing Co has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hammond Manufacturing Co's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Manufacturing Co ranks #987 out of 2998 companies for Gross Margin %. This puts Hammond Manufacturing Co in the upper half of its industry. The industry median Gross Margin % is 26.82. Hammond Manufacturing Co's value of 36.27% is 35.2% above this benchmark. Historically, Hammond Manufacturing Co's own Gross Margin % has ranged from 28.35 to 37.12 over the past decade. While the company's 10-year median is 31.18 vs. the industry median of 26.82, Hammond Manufacturing Co 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,998 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. Hammond Manufacturing Co's current Gross Margin % of 36.27% is 35.2% 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 Hammond Manufacturing Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Manufacturing Co's current Gross Margin % is 36.27%, which is 16% above median its own 10-year median of 31.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hammond Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Hammond Manufacturing Co (HMFAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $8.18, compared to a current price of $10.80 — trading 32% above its estimated fair value. The current Gross Margin % is 36.27%, which is 16% above median its 10-year median of 31.18 and 35.2% above the Industrial Products industry median of 26.82. Hammond Manufacturing Co's overall GF Score™ is 89/100. 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 Hammond Manufacturing Co (HMFAF), the current Gross Margin % is 36.27% 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 Hammond Manufacturing Co (HMFAF) Overvalued in 2026?
Based on GuruFocus' analysis, Hammond Manufacturing Co stock appears to be overvalued.
The current stock price of $10.80 is trading 32% above its estimated GF Value™ of $8.18.
GuruFocus considers Hammond Manufacturing Co to be Modestly Overvalued.
Key valuation signals for HMFAF:
Gross Margin %: 36.27% (16% above median its 10-year median of 31.18)
GF Value™: $8.18 vs. price of $10.80 (32% above fair value)
Industry Position: 35.2% above the Industrial Products median (#987 of 2998)
No single metric tells the full story. See the HMFAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hammond Manufacturing Co Ltd is involved in the design, manufacture and sale of electrical and electronic components. Its geographical segments are Canada, the United States, and other countries, of which key revenue is derived from the United States. The company operates in one operating segment, electrical and electronic components. The company generates revenue through the manufacturing and sales of industrial enclosures, electronic enclosures, racks and cabinets, transformers and other products. Its manufactured products include electrical and electronic enclosures, racks and cabinets, power bars, and electronic (low-voltage) transformers.
89GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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