Legend HoldingsLGNRF 78 Gross Margin % is 15.59% as of Dec. 2025, which is 6% below its 10-year median of 16.60. GuruFocus rates LGNRF with a GF Score™ of 78/100 and a GF Value™ of $0.79. The stock has 7 warning signs investors should review. Among 2,450 Hardware companies, Legend Holdings ranks worse than 71.84% on this metric.
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
Legend Holdings had a gross margin of 15.59% for the quarter that ended in Dec. 2025 => 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.
Legend Holdings Gross Margin % Related Terms
Legend Holdings Gross Margin % Historical Data
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The historical data trend for Legend 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.
LGNRF vs DELL, SNDK, ANET: Gross Margin % Comparison
For the Computer Hardware subindustry, Legend 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.
Legend Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Legend Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Legend 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.
Legend Holdings (LGNRF) has a Gross Margin % of 15.59% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Legend Holdings and its competitors. This is near median its historical median of 16.60. Over the past decade, Legend Holdings' Gross Margin % has ranged from 14.69 to 17.59. According to the industry distribution chart, Legend Holdings ranks #1760 out of 2450 companies in the Hardware industry, placing it in the top 71.8%.
Is Legend Holdings' Gross Margin % too high?
Legend Holdings' current Gross Margin % of 15.59% is near median its 10-year median of 16.60. Over the past 10 years, this metric has ranged from a low of 14.69 to a high of 17.59. The Hardware industry median Gross Margin % is 24.53. Legend Holdings' value of 15.59% is 36.4% below this industry median. Based on the distribution chart, Legend Holdings ranks #1760 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, Legend Holdings has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Legend Holdings' Gross Margin % compare to DELL and SNDK?
According to the Hardware industry distribution chart, Legend Holdings ranks #1760 out of 2450 companies for Gross Margin %. This places Legend Holdings in the lower half of its industry. The industry median Gross Margin % is 24.53. Legend Holdings' value of 15.59% is 36.4% below this benchmark. Historically, Legend Holdings' own Gross Margin % has ranged from 14.69 to 17.59 over the past decade. While the company's 10-year median is 16.60 vs. the industry median of 24.53, Legend Holdings has consistently been below 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 2,450 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. Legend Holdings's current Gross Margin % of 15.59% is 36.4% below 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 Legend Holdings 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. Legend Holdings's current Gross Margin % is 15.59%, which is near median its own 10-year median of 16.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legend Holdings stock overvalued right now?
Legend Holdings (LGNRF) has a current Gross Margin % of 15.59%. The stock's GF Value™ is $0.79, compared to a current price of $1.13 — trading 43% above its estimated fair value. The current Gross Margin % is 15.59%, which is near median its 10-year median of 16.60 and 36.4% below the Hardware industry median of 24.53. Legend Holdings' overall GF Score™ is 78/100 with 7 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 Legend Holdings (LGNRF), the current Gross Margin % is 15.59% 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 Legend Holdings (LGNRF) Overvalued in 2026?
Based on GuruFocus' analysis, Legend Holdings stock appears to be overvalued.
The current stock price of $1.13 is trading 43% above its estimated GF Value™ of $0.79.
Key valuation signals for LGNRF:
Gross Margin %: 15.59% (near median its 10-year median of 16.60)
GF Value™: $0.79 vs. price of $1.13 (43% above fair value)
Industry Position: 36.4% below the Hardware median (#1760 of 2450)
No single metric tells the full story. See the LGNRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Legend Holdings Ltd is a diversified industrial and investment group in China. It operates businesses through two segments: diversified industries operation, and industrial incubations and investments. The Industrial operations segment includes Lenovo, which is engaged in providing intelligent devices and infrastructure, and creates intelligent solutions, services and software; Levima Group, which is engaged in the research and development, production and sales of material products; Joyvio Group, which operates mainly to engaged in modern agriculture and food related business; and BIL, which mainly offers integrated banking services, including corporate and institutional banking, retail banking, private banking, capital markets, etc. It derives the majority of its revenue from Lenovo.
78GF Score
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