Hopson Development Holdings (OTCPK:HPDHF) 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
Hopson Development Holdings had a gross margin of 39.43% for the quarter that ended in Jun. 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.
Hopson Development Holdings Gross Margin % Related Terms
Hopson Development 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.
Hopson Development Holdings Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Hopson Development 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.
Hopson Development Holdings Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Hopson Development Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hopson Development 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.
Hopson Development Holdings (HPDHF) has a Gross Margin % of 39.43% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hopson Development Holdings and its competitors. This is 17% above median its historical median of 33.59. Over the past decade, Hopson Development Holdings' Gross Margin % has ranged from 24.62 to 63.52.
Is Hopson Development Holdings' Gross Margin % too high?
Hopson Development Holdings' current Gross Margin % of 39.43% is 17% above median its 10-year median of 33.59. Over the past 10 years, this metric has ranged from a low of 24.62 to a high of 63.52. The Real Estate industry median Gross Margin % is 36.96. Hopson Development Holdings' value of 39.43% is 6.7% above this industry median. Overall, Hopson Development Holdings has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Hopson Development Holdings' Gross Margin % compare to competitors?
Hopson Development Holdings' Gross Margin % of 39.43% can be compared against companies in the Real Estate industry. The industry median Gross Margin % is 36.96. Hopson Development Holdings' value of 39.43% is 6.7% above this benchmark. Historically, Hopson Development Holdings' own Gross Margin % has ranged from 24.62 to 63.52 over the past decade. While the company's 10-year median is 33.59 vs. the industry median of 36.96, Hopson Development 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.96, based on 1,644 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. Hopson Development Holdings's current Gross Margin % of 39.43% is 6.7% 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 Hopson Development Holdings and its competitors. For the Real Estate industry, the median Gross Margin % is 36.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hopson Development Holdings's current Gross Margin % is 39.43%, which is 17% above median its own 10-year median of 33.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hopson Development Holdings stock overvalued right now?
Hopson Development Holdings (HPDHF) has a current Gross Margin % of 39.43%. The stock's GF Value™ is $0.51, compared to a current price of $0.33 — trading 35.3% below its estimated fair value. The current Gross Margin % is 39.43%, which is 17% above median its 10-year median of 33.59 and 6.7% above the Real Estate industry median of 36.96. Hopson Development Holdings' overall GF Score™ is 77/100 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 Hopson Development Holdings (HPDHF), the current Gross Margin % is 39.43% as of Jun. 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 Hopson Development Holdings (HPDHF) Overvalued in 2026?
Based on GuruFocus' analysis, Hopson Development Holdings stock appears to be undervalued.
The current stock price of $0.33 is trading 35.3% below its estimated GF Value™ of $0.51.
Key valuation signals for HPDHF:
Gross Margin %: 39.43% (17% above median its 10-year median of 33.59)
GF Value™: $0.51 vs. price of $0.33 (35.3% below fair value)
Industry Position: 6.7% above the Real Estate median
No single metric tells the full story. See the HPDHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hopson Development Holdings Ltd is engaged in the development of medium to high-end large-scale residential properties. The company has five operating segments, which include the Property development segment, Commercial segment, Property management segment, Investments segment, and Infrastructure segment. It generates maximum revenue from Property development, which engages in the development and sale of properties. Geographically, the company derives all of its revenue from China.
77GF Score
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