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
Hyzon Motors had a gross margin of -124.63% for the quarter that ended in Sep. 2024 => No sustainable 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.
Hyzon Motors Gross Margin % Related Terms
Hyzon Motors Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hyzon Motors'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.
HYZNW vs MKDW, SAG, OMTK: Gross Margin % Comparison
For the Auto Parts subindustry, Hyzon Motors'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.
Hyzon Motors Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hyzon Motors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hyzon Motors'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.
Hyzon Motors (HYZNW) has a Gross Margin % of -124.63% as of Sep. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Hyzon Motors and its competitors.
Is Hyzon Motors' Gross Margin % too high?
Hyzon Motors' current Gross Margin % is -124.63%. Overall, Hyzon Motors has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Hyzon Motors' Gross Margin % compare to MKDW and SAG?
Hyzon Motors' Gross Margin % of -124.63% can be compared against companies in the Vehicles & Parts industry. The industry median Gross Margin % is 19.84. 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,308 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. 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 Hyzon Motors and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hyzon Motors's current Gross Margin % is -124.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hyzon Motors stock overvalued right now?
Hyzon Motors (HYZNW) has a current Gross Margin % of -124.63%. The current Gross Margin % is -124.63%. Hyzon Motors' overall GF Score™ is 12/100 with 4 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 Hyzon Motors (HYZNW), the current Gross Margin % is -124.63% as of Sep. 2024. 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.
Hyzon Motors Inc assembles and supplies hydrogen fuel cell-powered commercial vehicles across North America, Europe, China, and Australasia. In addition, it builds and fosters a clean hydrogen supply ecosystem with partners from feedstocks through production, dispensing and financing. The company intends to meet its customers' zero-emission vehicle needs by electrifying proven vehicle platforms utilizing its industry- leading fuel cell and electric propulsion technologies. It expects to deploy these technologies in various vehicle classes, including heavy-duty and medium-duty trucks and buses with the potential for future expansion into light-duty commercial vehicles, additional mobility use cases and stationary power applications.
12GF Score
Get the complete analysis for HYZNW
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HYZNW has been successfully added to your 
