HLP (Hongli Group) Moat Score: 1/10 (As of Jul. 02, 2026)


HLP Hongli Group Inc HLP
36 GF Score
Price $0.75
GF Value $0.35
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Hongli Group Moat Score?

Hongli Group HLP +31.93% 36 Moat Score is 1 as of Jul. 02, 2026. GuruFocus rates HLP with a GF Score™ of 36/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 644 Steel companies, Hongli Group ranks better than 90.06% on this metric.

Hongli Group has the Moat Score of 1, which implies that the company might have No Moat - Very weak/transient advantages.

Hongli Group has No Moat: Hongli Group Inc operates in a highly competitive industry with no discernible competitive advantages. It lacks brand strength, customer loyalty, and significant regulatory barriers, resulting in a very weak moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Hongli Group might have No Moat - Very weak/transient advantages.

Hongli Group  (NAS:HLP) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Hongli Group Moat Score Related Terms

HLP vs HUDI, ZKIN, LUD: Moat Score Comparison

For the Steel subindustry, Hongli Group's Moat Score, along with its competitors' market caps and Moat Score 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.

Hongli Group Moat Score vs Steel Industry

For the Steel industry and Basic Materials sector, Hongli Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Hongli Group's Moat Score falls into.


HLP
36GF Score
Hongli Group Inc HLP
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 1 mean?
Hongli Group (HLP) has a Moat Score of 1 as of Jul. 02, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Hongli Group ranks #64 out of 644 companies in the Steel industry, placing it in the top 9.9%.
Is Hongli Group's Moat Score too high?
Hongli Group's current Moat Score is 1. Based on the distribution chart, Hongli Group ranks #64 out of 644 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Hongli 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 Hongli Group's Moat Score compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #64 out of 644 companies for Moat Score. This places Hongli Group in the top 10% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Steel company?
A good Moat Score depends on the Steel industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Hongli Group's current Moat Score is 1. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $0.75 — trading 114.9% above its estimated fair value. The current Moat Score is 1. Hongli Group's overall GF Score™ is 36/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Hongli Group (HLP), the current Moat Score is 1 as of Jul. 02, 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 Hongli Group (HLP) Overvalued in 2026?

Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued. The current stock price of $0.75 is trading 114.9% above its estimated GF Value™ of $0.35. GuruFocus considers Hongli Group to be Significantly Overvalued.

Key valuation signals for HLP:

  • Moat Score: 1
  • GF Value™: $0.35 vs. price of $0.75 (114.9% above fair value)
  • GF Score™: 36/100 with 4 warning signs

No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hongli Group Business Description

Address No. 777, Daiyi Road, Changle County, Shandong Province, Weifang, CHN, 262400
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
36GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$0.75
Price
$0.35
GF Value