Honghua GroupSTU:4HB +7.14%36 Gross Margin % is 11.96% as of Dec. 2025, which is 18% below its 10-year median of 14.56. GuruFocus rates STU:4HB with a GF Score™ of 36/100 and a GF Value™ of €0.01 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 871 Oil & Gas companies, Honghua Group ranks worse than 73.48% on this metric.
Honghua Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.1%.
The historical rank and industry rank for Honghua Group's Gross Margin % or its related term are showing as below:
STU:4HB'
s Gross Margin % Range Over the Past 10 Years
Min: 9.9 Med: 14.56 Max: 30.02
Current: 12.46
During the past 13 years, the highestGross Margin % of Honghua Group was 30.02%. The lowest was 9.90%. And the median was 14.56%.
STU:4HB's Gross Margin % is ranked worse than 73.48% of 871
companies
in the Oil & Gas industry
Industry Median: 25.7
vs STU:4HB: 12.46
Honghua Group had a gross margin of 11.96% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Honghua Group was -12.10% per year.
Honghua Group (STU:4HB) 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
Honghua Group had a gross margin of 11.96% 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.
Honghua Group Gross Margin % Related Terms
Honghua Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Honghua 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.
STU:4HB vs SLB, BKR, HAL: Gross Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Honghua 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.
Honghua Group Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Honghua Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Honghua 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.
Honghua Group (STU:4HB) has a Gross Margin % of 11.96% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Honghua Group and its competitors. This is 18% below median its historical median of 14.56. Over the past decade, Honghua Group's Gross Margin % has ranged from 9.90 to 30.02. According to the industry distribution chart, Honghua Group ranks #640 out of 871 companies in the Oil & Gas industry, placing it in the top 73.5%.
Is Honghua Group's Gross Margin % too high?
Honghua Group's current Gross Margin % of 11.96% is 18% below median its 10-year median of 14.56. Over the past 10 years, this metric has ranged from a low of 9.90 to a high of 30.02. The Oil & Gas industry median Gross Margin % is 25.70. Honghua Group's value of 11.96% is 53.5% below this industry median. Based on the distribution chart, Honghua Group ranks #640 out of 871 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Honghua Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honghua Group's Gross Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Honghua Group ranks #640 out of 871 companies for Gross Margin %. This places Honghua Group in the lower half of its industry. The industry median Gross Margin % is 25.70. Honghua Group's value of 11.96% is 53.5% below this benchmark. Historically, Honghua Group's own Gross Margin % has ranged from 9.90 to 30.02 over the past decade. While the company's 10-year median is 14.56 vs. the industry median of 25.70, Honghua 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 Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 871 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. Honghua Group's current Gross Margin % of 11.96% is 53.5% 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 Honghua Group and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honghua Group's current Gross Margin % is 11.96%, which is 18% below median its own 10-year median of 14.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honghua Group stock overvalued right now?
Based on GuruFocus' analysis, Honghua Group (STU:4HB) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.01, compared to a current price of €0.02 — trading 50% above its estimated fair value. The current Gross Margin % is 11.96%, which is 18% below median its 10-year median of 14.56 and 53.5% below the Oil & Gas industry median of 25.70. Honghua Group's overall GF Score™ is 36/100 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 Honghua Group (STU:4HB), the current Gross Margin % is 11.96% 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 Honghua Group (STU:4HB) Overvalued in 2026?
Based on GuruFocus' analysis, Honghua Group stock appears to be overvalued.
The current stock price of €0.02 is trading 50% above its estimated GF Value™ of €0.01.
GuruFocus considers Honghua Group to be Significantly Overvalued.
Key valuation signals for STU:4HB:
Gross Margin %: 11.96% (18% below median its 10-year median of 14.56)
GF Value™: €0.01 vs. price of €0.02 (50% above fair value)
Industry Position: 53.5% below the Oil & Gas median (#640 of 871)
No single metric tells the full story. See the STU:4HB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honghua Group Ltd is an oil and gas exploration and development equipment manufacturing and drilling engineering services company. Its product portfolio includes land drilling rigs, electric fracturing equipment, core parts and components of drilling and completion equipment, offshore engineering equipment manufacturing, drilling engineering services, digital products for drilling and completion, as well as new energy equipment and comprehensive services for oil and gas fields, providing customers with a full products and services for energy development. Its segments include land drilling rigs, parts and components, and others; drilling engineering services; fracturing services; and offshore engineering. The land drilling rigs segment derives the majority of the revenue.
36GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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