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Hon Hai Precision Industry CoHNHAY 89 Net-Net Working Capital is $-1.73 as of Mar. 2026. GuruFocus rates HNHAY with a GF Score™ of 89/100. The stock has 1 warning sign investors should review. Among 1,196 Hardware companies, Hon Hai Precision Industry Co ranks worse than 83611.96% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
The industry rank for Hon Hai Precision Industry Co's Net-Net Working Capital or its related term are showing as below:
HNHAY's Price-to-Net-Net-Working-Capital is not ranked *
in the Hardware industry.
Industry Median: 9.135 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Hon Hai Precision Industry Co (OTCPK:HNHAY) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Hon Hai Precision Industry Co Net-Net Working Capital Related Terms
Hon Hai Precision Industry Co Net-Net Working Capital 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.
Hon Hai Precision Industry Co Net-Net Working Capital Chart
HNHAY vs APH, GLW, TEL: Net-Net Working Capital Comparison
For the Electronic Components subindustry, Hon Hai Precision Industry Co's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Hon Hai Precision Industry Co Price-to-Net-Net-Working-Capital vs Hardware Industry
For the Hardware industry and Technology sector, Hon Hai Precision Industry Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Hon Hai Precision Industry Co's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-1.73 mean?
Hon Hai Precision Industry Co (HNHAY) has a Net-Net Working Capital of $-1.73 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Hon Hai Precision Industry Co According to the industry distribution chart, Hon Hai Precision Industry Co ranks #999999 out of 1196 companies in the Hardware industry.
Is Hon Hai Precision Industry Co's Net-Net Working Capital too high?
Hon Hai Precision Industry Co's current Net-Net Working Capital is $-1.73. Based on the distribution chart, Hon Hai Precision Industry Co ranks #999999 out of 1196 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Hon Hai Precision Industry Co has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Hon Hai Precision Industry Co's Net-Net Working Capital compare to APH and GLW?
According to the Hardware industry distribution chart, Hon Hai Precision Industry Co ranks #999999 out of 1196 companies for Net-Net Working Capital. This places Hon Hai Precision Industry Co in the lower half of its industry. The industry median Net-Net Working Capital is 9.14. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Hardware company?
The median Net-Net Working Capital among Hardware companies is 9.14, based on 1,196 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Hon Hai Precision Industry Co For the Hardware industry, the median Net-Net Working Capital is 9.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hon Hai Precision Industry Co's current Net-Net Working Capital is $-1.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hon Hai Precision Industry Co stock overvalued right now?
Hon Hai Precision Industry Co (HNHAY) has a current Net-Net Working Capital of $-1.73. The current Net-Net Working Capital is $-1.73. Hon Hai Precision Industry Co's overall GF Score™ is 89/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Hon Hai Precision Industry Co (HNHAY), the current Net-Net Working Capital is $-1.73 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.
Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for around 50% of overall revenue in 2025. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones, as well as producing servers. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.
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