Hongli GroupHLP +8.35%36 Pretax Margin % is 10.12% as of Dec. 2025, which is 36% below its 10-year median of 15.84. 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 612 Steel companies, Hongli Group ranks better than 84.64% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Hongli Group's Pre-Tax Income for the
six
months ended in Dec. 2025 was $1.01 Mil. Hongli Group's Revenue for the
six
months ended in Dec. 2025 was $10.01 Mil. Therefore, Hongli Group's pretax margin for the quarter that ended in Dec. 2025 was 10.12%.
The historical rank and industry rank for Hongli Group's Pretax Margin % or its related term are showing as below:
HLP'
s Pretax Margin % Range Over the Past 10 Years
Min: -13.28 Med: 15.84 Max: 28.71
Current: 11.08
HLP's Pretax Margin % is ranked better than 84.64% of 612
companies
in the Steel industry
Industry Median: 2.57
vs HLP: 11.08
Hongli Group (NAS:HLP) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Hongli Group Pretax Margin % Related Terms
Hongli Group Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Hongli Group's Pretax 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.
HLP vs HUDI, ZKIN, INHD: Pretax Margin % Comparison
For the Steel subindustry, Hongli Group's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Hongli Group's Pretax 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 Pretax Margin % of 10.12% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Hongli Group and its competitors. This is 36% below median its historical median of 15.84. According to the industry distribution chart, Hongli Group ranks #94 out of 612 companies in the Steel industry, placing it in the top 15.4%.
Is Hongli Group's Pretax Margin % too high?
Hongli Group's current Pretax Margin % of 10.12% is 36% below median its 10-year median of 15.84. The Steel industry median Pretax Margin % is 2.57. Hongli Group's value of 10.12% is 293.8% above this industry median. Based on the distribution chart, Hongli Group ranks #94 out of 612 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 Pretax Margin % compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #94 out of 612 companies for Pretax Margin %. This places Hongli Group in the top 15% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.57. Hongli Group's value of 10.12% is 293.8% above this benchmark. While the company's 10-year median is 15.84 vs. the industry median of 2.57, 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 Pretax Margin % for a Steel company?
The median Pretax Margin % among Steel companies is 2.57, based on 612 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hongli Group's current Pretax Margin % of 10.12% is 293.8% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Hongli Group and its competitors. For the Steel industry, the median Pretax Margin % is 2.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current Pretax Margin % is 10.12%, which is 36% below median its own 10-year median of 15.84. 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 Pretax Margin % is 10.12%, which is 36% below median its 10-year median of 15.84 and 293.8% above the Steel industry median of 2.57. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Hongli Group (HLP), the current Pretax Margin % is 10.12% 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:
Pretax Margin %: 10.12% (36% below median its 10-year median of 15.84)
GF Value™: $0.35 vs. price of $0.53 (50.5% above fair value)
Industry Position: 293.8% above the Steel median (#94 of 612)
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.
36GF Score
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