Hongli GroupHLP +8.35%36 Net Margin % is 9.52% as of Dec. 2025, which is 34% below its 10-year median of 14.46. 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 615 Steel companies, Hongli Group ranks better than 86.99% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Hongli Group's Net Income for the
six
months ended in Dec. 2025 was $0.95 Mil. Hongli Group's Revenue for the
six
months ended in Dec. 2025 was $10.01 Mil. Therefore, Hongli Group's net margin for the quarter that ended in Dec. 2025 was 9.52%.
The historical rank and industry rank for Hongli Group's Net Margin % or its related term are showing as below:
HLP'
s Net Margin % Range Over the Past 10 Years
Min: -13.34 Med: 14.46 Max: 22.37
Current: 9.91
HLP's Net Margin % is ranked better than 86.99% of 615
companies
in the Steel industry
Industry Median: 1.86
vs HLP: 9.91
Hongli Group (NAS:HLP) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Hongli Group Net Margin % Related Terms
Hongli Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Hongli Group's Net 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.
For the Steel subindustry, Hongli Group's Net Margin %, along with its competitors' market caps and Net 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.
Hongli Group Net Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hongli Group's Net 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.
Hongli Group (HLP) has a Net Margin % of 9.52% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Hongli Group and its competitors. This is 34% below median its historical median of 14.46. According to the industry distribution chart, Hongli Group ranks #80 out of 615 companies in the Steel industry, placing it in the top 13%.
Is Hongli Group's Net Margin % too high?
Hongli Group's current Net Margin % of 9.52% is 34% below median its 10-year median of 14.46. The Steel industry median Net Margin % is 1.86. Hongli Group's value of 9.52% is 411.8% above this industry median. Based on the distribution chart, Hongli Group ranks #80 out of 615 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 Net Margin % compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #80 out of 615 companies for Net Margin %. This places Hongli Group in the top 13% of its industry — outperforming the majority of peers. The industry median Net Margin % is 1.86. Hongli Group's value of 9.52% is 411.8% above this benchmark. While the company's 10-year median is 14.46 vs. the industry median of 1.86, Hongli Group has consistently been above 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 Net Margin % for a Steel company?
The median Net Margin % among Steel companies is 1.86, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hongli Group's current Net Margin % of 9.52% is 411.8% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Hongli Group and its competitors. For the Steel industry, the median Net Margin % is 1.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current Net Margin % is 9.52%, which is 34% below median its own 10-year median of 14.46. 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 $0.53 — trading 50.5% above its estimated fair value. The current Net Margin % is 9.52%, which is 34% below median its 10-year median of 14.46 and 411.8% above the Steel industry median of 1.86. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Hongli Group (HLP), the current Net Margin % is 9.52% 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 Hongli Group (HLP) Overvalued in 2026?
Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued.
The current stock price of $0.53 is trading 50.5% above its estimated GF Value™ of $0.35.
GuruFocus considers Hongli Group to be Significantly Overvalued.
Key valuation signals for HLP:
Net Margin %: 9.52% (34% below median its 10-year median of 14.46)
GF Value™: $0.35 vs. price of $0.53 (50.5% above fair value)
Industry Position: 411.8% above the Steel median (#80 of 615)
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 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.
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