The historical rank and industry rank for Meritage Hospitality Group's Net Margin % or its related term are showing as below:
MHGU'
s Net Margin % Range Over the Past 10 Years
Min: -6.21 Med: 2.66 Max: 3.02
Current: -6.21
MHGU's Net Margin % is ranked worse than 80.33% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs MHGU: -6.21
Meritage Hospitality Group (OTCPK:MHGU) 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.
Meritage Hospitality Group Net Margin % Related Terms
Meritage Hospitality Group Net 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 Restaurants subindustry, Meritage Hospitality 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.
Meritage Hospitality Group Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality 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.
Meritage Hospitality Group (MHGU) has a Net Margin % of -7.16% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Meritage Hospitality Group and its competitors. According to the industry distribution chart, Meritage Hospitality Group ranks #294 out of 366 companies in the Restaurants industry, placing it in the top 80.3%.
Is Meritage Hospitality Group's Net Margin % too high?
Meritage Hospitality Group's current Net Margin % is -7.16%. Based on the distribution chart, Meritage Hospitality Group ranks #294 out of 366 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Meritage Hospitality Group has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meritage Hospitality Group's Net Margin % compare to PETZ and GTIM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #294 out of 366 companies for Net Margin %. This places Meritage Hospitality Group in the lower half of its industry. The industry median Net Margin % is 2.06. 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 Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 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. 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 Meritage Hospitality Group and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current Net Margin % is -7.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meritage Hospitality Group stock overvalued right now?
Based on GuruFocus' analysis, Meritage Hospitality Group (MHGU) is currently considered Possible Value Trap. The stock's GF Value™ is $17.12, compared to a current price of $2.98 — trading 82.6% below its estimated fair value. The current Net Margin % is -7.16%. Meritage Hospitality Group's overall GF Score™ is 45/100 with 8 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 Meritage Hospitality Group (MHGU), the current Net Margin % is -7.16% 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 Meritage Hospitality Group (MHGU) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Hospitality Group stock appears to be undervalued.
The current stock price of $2.98 is trading 82.6% below its estimated GF Value™ of $17.12.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
Net Margin %: -7.16%
GF Value™: $17.12 vs. price of $2.98 (82.6% below fair value)
No single metric tells the full story. See the MHGU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meritage Hospitality Group Inc is engaged in operating quick-service and casual dining restaurants across various states in the United States. It operates Wendy's quick-service restaurants across various states under franchise agreements with its franchisor. It also operates independent restaurants under three concepts throughout Michigan, which include Morning Belle restaurants, Stan's Tacos restaurant, and Blue Porch Bar & Grill restaurant. It is focused on the future development and long-term growth of its Morning Belle brand.
45GF Score
Get the complete analysis for MHGU
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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