SK HynixHXSCL 86 Gross Margin % is 79.27% as of Mar. 2026, which is 95% above its 10-year median of 40.68. GuruFocus rates HXSCL with a GF Score™ of 86/100 and a GF Value™ of $12.32. The stock has 6 warning signs investors should review. Among 1,009 Semiconductors companies, SK Hynix ranks better than 95.54% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SK Hynix's Gross Profit for the
three
months ended in Mar. 2026 was $27,963 Mil. SK Hynix's Revenue for the
three
months ended in Mar. 2026 was $35,274 Mil. Therefore, SK Hynix's Gross Margin % for the quarter that ended in Mar. 2026 was 79.27%.
The historical rank and industry rank for SK Hynix's Gross Margin % or its related term are showing as below:
HXSCL'
s Gross Margin % Range Over the Past 10 Years
Min: -1.63 Med: 40.68 Max: 68.34
Current: 68.34
During the past 13 years, the highestGross Margin % of SK Hynix was 68.34%. The lowest was -1.63%. And the median was 40.68%.
HXSCL's Gross Margin % is ranked better than 95.54% of 1009
companies
in the Semiconductors industry
Industry Median: 29.61
vs HXSCL: 68.34
SK Hynix had a gross margin of 79.27% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SK Hynix was 0.00% per year.
SK Hynix (OTCPK:HXSCL) 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
SK Hynix had a gross margin of 79.27% for the quarter that ended in Mar. 2026 => 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.
SK Hynix Gross Margin % Related Terms
SK Hynix Gross Margin % Historical Data
* Premium members only.
The historical data trend for SK Hynix'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.
HXSCL vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, SK Hynix'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.
SK Hynix Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SK Hynix's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SK Hynix'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.
SK Hynix (HXSCL) has a Gross Margin % of 79.27% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SK Hynix and its competitors. This is 95% above median its historical median of 40.68. According to the industry distribution chart, SK Hynix ranks #45 out of 1009 companies in the Semiconductors industry, placing it in the top 4.5%.
Is SK Hynix's Gross Margin % too high?
SK Hynix's current Gross Margin % of 79.27% is 95% above median its 10-year median of 40.68. The Semiconductors industry median Gross Margin % is 29.61. SK Hynix's value of 79.27% is 167.7% above this industry median. Based on the distribution chart, SK Hynix ranks #45 out of 1009 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, SK Hynix has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does SK Hynix's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, SK Hynix ranks #45 out of 1009 companies for Gross Margin %. This places SK Hynix in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. SK Hynix's value of 79.27% is 167.7% above this benchmark. While the company's 10-year median is 40.68 vs. the industry median of 29.61, SK Hynix 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 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. SK Hynix's current Gross Margin % of 79.27% is 167.7% 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 SK Hynix and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SK Hynix's current Gross Margin % is 79.27%, which is 95% above median its own 10-year median of 40.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SK Hynix stock overvalued right now?
SK Hynix (HXSCL) has a current Gross Margin % of 79.27%. The stock's GF Value™ is $12.32, compared to a current price of $41.71 — trading 238.6% above its estimated fair value. The current Gross Margin % is 79.27%, which is 95% above median its 10-year median of 40.68 and 167.7% above the Semiconductors industry median of 29.61. SK Hynix's overall GF Score™ is 86/100 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 SK Hynix (HXSCL), the current Gross Margin % is 79.27% 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 SK Hynix (HXSCL) Overvalued in 2026?
Based on GuruFocus' analysis, SK Hynix stock appears to be overvalued.
The current stock price of $41.71 is trading 238.6% above its estimated GF Value™ of $12.32.
Key valuation signals for HXSCL:
Gross Margin %: 79.27% (95% above median its 10-year median of 40.68)
GF Value™: $12.32 vs. price of $41.71 (238.6% above fair value)
Industry Position: 167.7% above the Semiconductors median (#45 of 1009)
No single metric tells the full story. See the HXSCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SK Hynix is a semiconductor memory manufacturer with around 60%-70% of its revenue from DRAM and 30%-35% of its revenue from NAND. The company is both the second-largest DRAM and NAND supplier globally with a 33% and 21% market share, respectively, as of 2024. SK Hynix increased its market position in NAND from fourth to second, after acquiring Intel's NAND business in 2021. SK Square, an investment management company spun off from SK Telecom, is SK Hynix's largest shareholder and currently holds 20% of the company's shares.
86GF Score
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