Next Hydrogen SolutionsNXHSF 41 Gross Margin % is -104.11% as of Mar. 2026. GuruFocus rates NXHSF with a GF Score™ of 41/100 and a GF Value™ of $1.20 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,996 Industrial Products companies, Next Hydrogen Solutions ranks worse than 91.29% on this metric.
NXHSF's Gross Margin % is ranked worse than 91.29% of 2996
companies
in the Industrial Products industry
Industry Median: 26.8
vs NXHSF: 9.06
Next Hydrogen Solutions had a gross margin of -104.11% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Next Hydrogen Solutions was 0.00% per year.
Next Hydrogen Solutions (OTCPK:NXHSF) 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
Next Hydrogen Solutions had a gross margin of -104.11% for the quarter that ended in Mar. 2026 => 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.
Next Hydrogen Solutions Gross Margin % Related Terms
Next Hydrogen Solutions 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.
For the Specialty Industrial Machinery subindustry, Next Hydrogen Solutions'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.
Next Hydrogen Solutions Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Next Hydrogen Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Next Hydrogen Solutions'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.
Next Hydrogen Solutions (NXHSF) has a Gross Margin % of -104.11% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Next Hydrogen Solutions and its competitors. According to the industry distribution chart, Next Hydrogen Solutions ranks #2735 out of 2996 companies in the Industrial Products industry, placing it in the top 91.3%.
Is Next Hydrogen Solutions' Gross Margin % too high?
Next Hydrogen Solutions' current Gross Margin % is -104.11%. Based on the distribution chart, Next Hydrogen Solutions ranks #2735 out of 2996 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Next Hydrogen Solutions has a GF Score™ of 41/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Next Hydrogen Solutions' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Next Hydrogen Solutions ranks #2735 out of 2996 companies for Gross Margin %. This places Next Hydrogen Solutions in the lower half of its industry. The industry median Gross Margin % is 26.80. 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.80, based on 2,996 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 Next Hydrogen Solutions and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Next Hydrogen Solutions's current Gross Margin % is -104.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Next Hydrogen Solutions stock overvalued right now?
Based on GuruFocus' analysis, Next Hydrogen Solutions (NXHSF) is currently considered Possible Value Trap. The stock's GF Value™ is $1.20, compared to a current price of $0.35 — trading 70.8% below its estimated fair value. The current Gross Margin % is -104.11%. Next Hydrogen Solutions' overall GF Score™ is 41/100 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 Next Hydrogen Solutions (NXHSF), the current Gross Margin % is -104.11% 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 Next Hydrogen Solutions (NXHSF) Overvalued in 2026?
Based on GuruFocus' analysis, Next Hydrogen Solutions stock appears to be undervalued.
The current stock price of $0.35 is trading 70.8% below its estimated GF Value™ of $1.20.
GuruFocus considers Next Hydrogen Solutions to be Possible Value Trap.
Key valuation signals for NXHSF:
Gross Margin %: -104.11%
GF Value™: $1.20 vs. price of $0.35 (70.8% below fair value)
No single metric tells the full story. See the NXHSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Next Hydrogen Solutions Inc is a designer and manufacturer of electrolyzers that use water and electricity as inputs to generate clean hydrogen for use as an energy source. Its cell design architecture enables high current density operations and superior dynamic response to efficiently convert intermittent renewable electricity into green hydrogen on an infrastructure scale. The company generates revenue from customer contracts from the principal sources of product and equipment sales; services as well as aftermarket sales; and development contracts.
41GF Score
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