Harvey Norman HoldingsHNORF 54 Gross Margin % is 46.53% as of Dec. 2025, which is 13% below its 10-year median of 53.42. GuruFocus rates HNORF with a GF Score™ of 54/100 and a GF Value™ of $3.07 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Harvey Norman Holdings ranks better than 73.5% on this metric.
HNORF's Gross Margin % is ranked better than 73.5% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs HNORF: 50.63
Harvey Norman Holdings had a gross margin of 46.53% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Harvey Norman Holdings was -1.70% per year.
Harvey Norman Holdings (OTCPK:HNORF) 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
Harvey Norman Holdings had a gross margin of 46.53% for the quarter that ended in Dec. 2025 => 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.
Harvey Norman Holdings Gross Margin % Related Terms
Harvey Norman Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Harvey Norman 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.
HNORF vs CASY, WSM, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, Harvey Norman 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.
Harvey Norman Holdings Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Harvey Norman Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Harvey Norman 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.
Harvey Norman Holdings (HNORF) has a Gross Margin % of 46.53% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Harvey Norman Holdings and its competitors. This is 13% below median its historical median of 53.42. Over the past decade, Harvey Norman Holdings' Gross Margin % has ranged from 50.63 to 57.46. According to the industry distribution chart, Harvey Norman Holdings ranks #296 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 26.5%.
Is Harvey Norman Holdings' Gross Margin % too high?
Harvey Norman Holdings' current Gross Margin % of 46.53% is 13% below median its 10-year median of 53.42. Over the past 10 years, this metric has ranged from a low of 50.63 to a high of 57.46. The Retail - Cyclical industry median Gross Margin % is 36.23. Harvey Norman Holdings' value of 46.53% is 28.4% above this industry median. Based on the distribution chart, Harvey Norman Holdings ranks #296 out of 1117 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Harvey Norman Holdings has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harvey Norman Holdings' Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Harvey Norman Holdings ranks #296 out of 1117 companies for Gross Margin %. This puts Harvey Norman Holdings in the upper half of its industry. The industry median Gross Margin % is 36.23. Harvey Norman Holdings' value of 46.53% is 28.4% above this benchmark. Historically, Harvey Norman Holdings' own Gross Margin % has ranged from 50.63 to 57.46 over the past decade. While the company's 10-year median is 53.42 vs. the industry median of 36.23, Harvey Norman 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 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. Harvey Norman Holdings's current Gross Margin % of 46.53% is 28.4% 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 Harvey Norman Holdings and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harvey Norman Holdings's current Gross Margin % is 46.53%, which is 13% below median its own 10-year median of 53.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harvey Norman Holdings stock overvalued right now?
Based on GuruFocus' analysis, Harvey Norman Holdings (HNORF) is currently considered Modestly Overvalued. The stock's GF Value™ is $3.07, compared to a current price of $3.72 — trading 21.2% above its estimated fair value. The current Gross Margin % is 46.53%, which is 13% below median its 10-year median of 53.42 and 28.4% above the Retail - Cyclical industry median of 36.23. Harvey Norman Holdings' overall GF Score™ is 54/100 with 5 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 Harvey Norman Holdings (HNORF), the current Gross Margin % is 46.53% 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 Harvey Norman Holdings (HNORF) Overvalued in 2026?
Based on GuruFocus' analysis, Harvey Norman Holdings stock appears to be overvalued.
The current stock price of $3.72 is trading 21.2% above its estimated GF Value™ of $3.07.
GuruFocus considers Harvey Norman Holdings to be Modestly Overvalued.
Key valuation signals for HNORF:
Gross Margin %: 46.53% (13% below median its 10-year median of 53.42)
GF Value™: $3.07 vs. price of $3.72 (21.2% above fair value)
Industry Position: 28.4% above the Retail - Cyclical median (#296 of 1117)
No single metric tells the full story. See the HNORF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harvey Norman Holdings Limited is the franchisor of Harvey Norman, a leading Australia-based retailer that sells goods from the electrical, computer, furniture, entertainment, and bedding sectors. The majority of earnings are generated in Australia, with the international divisions gradually growing in significance.
54GF 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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