Hello GroupMEX:MOMON 73 Gross Margin % is 38.67% as of Mar. 2026, which is 13% below its 10-year median of 44.46. GuruFocus rates MEX:MOMON with a GF Score™ of 73/100 and a GF Value™ of MXN133.25 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 497 Interactive Media companies, Hello Group ranks worse than 76.06% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Hello Group's Gross Profit for the
three
months ended in Mar. 2026 was MXN2,414 Mil. Hello Group's Revenue for the
three
months ended in Mar. 2026 was MXN6,243 Mil. Therefore, Hello Group's Gross Margin % for the quarter that ended in Mar. 2026 was 38.67%.
Warning Sign:
Hello Group Inc gross margin has been in long-term decline. The average rate of decline per year is -3.8%.
The historical rank and industry rank for Hello Group's Gross Margin % or its related term are showing as below:
MEX:MOMON'
s Gross Margin % Range Over the Past 10 Years
Min: 37.82 Med: 44.46 Max: 56.32
Current: 38.03
During the past 13 years, the highestGross Margin % of Hello Group was 56.32%. The lowest was 37.82%. And the median was 44.46%.
MEX:MOMON's Gross Margin % is ranked worse than 76.06% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs MEX:MOMON: 38.03
Hello Group had a gross margin of 38.67% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hello Group was -3.80% per year.
Hello Group (MEX:MOMON) 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
Hello Group had a gross margin of 38.67% for the quarter that ended in Mar. 2026 => 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.
Hello Group Gross Margin % Related Terms
Hello Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hello Group'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.
MEX:MOMON vs NXDR, GRPN, EVER: Gross Margin % Comparison
For the Internet Content & Information subindustry, Hello 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.
Hello Group Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Hello Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hello Group'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.
Hello Group (MEX:MOMON) has a Gross Margin % of 38.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hello Group and its competitors. This is 13% below median its historical median of 44.46. Over the past decade, Hello Group's Gross Margin % has ranged from 37.82 to 56.32. According to the industry distribution chart, Hello Group ranks #378 out of 497 companies in the Interactive Media industry, placing it in the top 76.1%.
Is Hello Group's Gross Margin % too high?
Hello Group's current Gross Margin % of 38.67% is 13% below median its 10-year median of 44.46. Over the past 10 years, this metric has ranged from a low of 37.82 to a high of 56.32. The Interactive Media industry median Gross Margin % is 62.58. Hello Group's value of 38.67% is 38.2% below this industry median. Based on the distribution chart, Hello Group ranks #378 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Hello Group has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hello Group's Gross Margin % compare to NXDR and GRPN?
According to the Interactive Media industry distribution chart, Hello Group ranks #378 out of 497 companies for Gross Margin %. This places Hello Group in the lower half of its industry. The industry median Gross Margin % is 62.58. Hello Group's value of 38.67% is 38.2% below this benchmark. Historically, Hello Group's own Gross Margin % has ranged from 37.82 to 56.32 over the past decade. While the company's 10-year median is 44.46 vs. the industry median of 62.58, Hello Group 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Hello Group's current Gross Margin % of 38.67% is 38.2% 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 Hello Group and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hello Group's current Gross Margin % is 38.67%, which is 13% below median its own 10-year median of 44.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hello Group stock overvalued right now?
Based on GuruFocus' analysis, Hello Group (MEX:MOMON) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN133.25, compared to a current price of MXN99.80 — trading 25.1% below its estimated fair value. The current Gross Margin % is 38.67%, which is 13% below median its 10-year median of 44.46 and 38.2% below the Interactive Media industry median of 62.58. Hello Group's overall GF Score™ is 73/100 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 Hello Group (MEX:MOMON), the current Gross Margin % is 38.67% 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 Hello Group (MEX:MOMON) Overvalued in 2026?
Based on GuruFocus' analysis, Hello Group stock appears to be undervalued.
The current stock price of MXN99.80 is trading 25.1% below its estimated GF Value™ of MXN133.25.
GuruFocus considers Hello Group to be Modestly Undervalued.
Key valuation signals for MEX:MOMON:
Gross Margin %: 38.67% (13% below median its 10-year median of 44.46)
GF Value™: MXN133.25 vs. price of MXN99.80 (25.1% below fair value)
Industry Position: 38.2% below the Interactive Media median (#378 of 497)
No single metric tells the full story. See the MEX:MOMON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hello Group Inc is a foremost player in Asia's online social networking space. Through Momo, Tantan and other properties within its product portfolio, It enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which it added to its family of applications through acquisition. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. The Group determined that it operated in three operating segments namely Momo, Tantan and QOOL. The majority of revenue comes from Chinese mainland as compare to Overseas.
73GF Score
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