China High Precision Automation Group (OTCPK:HPAGF) 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
China High Precision Automation Group had a gross margin of 30.28% 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.
China High Precision Automation Group Gross Margin % Related Terms
China High Precision Automation Group 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.
China High Precision Automation Group Gross Margin % Chart
HPAGF vs COHR, KEYS, GRMN: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, China High Precision Automation Group'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.
China High Precision Automation Group Gross Margin % vs Hardware Industry
* 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.
China High Precision Automation Group (HPAGF) has a Gross Margin % of 30.28% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China High Precision Automation Group and its competitors. This is 424% above median its historical median of 5.78. According to the industry distribution chart, China High Precision Automation Group ranks #1068 out of 2454 companies in the Hardware industry, placing it in the top 43.5%.
Is China High Precision Automation Group's Gross Margin % too high?
China High Precision Automation Group's current Gross Margin % of 30.28% is 424% above median its 10-year median of 5.78. The Hardware industry median Gross Margin % is 24.53. China High Precision Automation Group's value of 30.28% is 23.4% above this industry median. Based on the distribution chart, China High Precision Automation Group ranks #1068 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, China High Precision Automation Group has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China High Precision Automation Group's Gross Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, China High Precision Automation Group ranks #1068 out of 2454 companies for Gross Margin %. This puts China High Precision Automation Group in the upper half of its industry. The industry median Gross Margin % is 24.53. China High Precision Automation Group's value of 30.28% is 23.4% above this benchmark. While the company's 10-year median is 5.78 vs. the industry median of 24.53, China High Precision Automation Group 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,454 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. China High Precision Automation Group's current Gross Margin % of 30.28% is 23.4% 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 China High Precision Automation Group and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China High Precision Automation Group's current Gross Margin % is 30.28%, which is 424% above median its own 10-year median of 5.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China High Precision Automation Group stock overvalued right now?
Based on GuruFocus' analysis, China High Precision Automation Group (HPAGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.01, compared to a current price of $0.03 — trading 189.9% above its estimated fair value. The current Gross Margin % is 30.28%, which is 424% above median its 10-year median of 5.78 and 23.4% above the Hardware industry median of 24.53. China High Precision Automation Group's overall GF Score™ is 45/100 with 3 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 China High Precision Automation Group (HPAGF), the current Gross Margin % is 30.28% 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 China High Precision Automation Group (HPAGF) Overvalued in 2026?
Based on GuruFocus' analysis, China High Precision Automation Group stock appears to be overvalued.
The current stock price of $0.03 is trading 189.9% above its estimated GF Value™ of $0.01.
GuruFocus considers China High Precision Automation Group to be Significantly Overvalued.
Key valuation signals for HPAGF:
Gross Margin %: 30.28% (424% above median its 10-year median of 5.78)
GF Value™: $0.01 vs. price of $0.03 (189.9% above fair value)
Industry Position: 23.4% above the Hardware median (#1068 of 2454)
No single metric tells the full story. See the HPAGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China High Precision Automation Group Business Description
China High Precision Automation Group Ltd is an investment holding company. Through its subsidiaries engaged in the manufacturing and selling of and provision of consigned processing services on high precision industrial automation instrument and technology products, and the manufacturing and selling of multi-functional all plastic quartz watch movements. The company has the following two business segments: Automation instrument and technology products and Horological instruments. It generates the majority of its reveue from the sales of automation instrument and technology products.
45GF Score
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