Hon Hai Precision Industry CoHNHPF -4.80%90 Pretax Margin % is 3.16% as of Dec. 2025, which is 0% below its 10-year median of 3.17. GuruFocus rates HNHPF with a GF Score™ of 90/100 and a GF Value™ of $14.03 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,475 Hardware companies, Hon Hai Precision Industry Co ranks better than 50.22% on this metric.
The historical rank and industry rank for Hon Hai Precision Industry Co's Pretax Margin % or its related term are showing as below:
HNHPF'
s Pretax Margin % Range Over the Past 10 Years
Min: 2.72 Med: 3.17 Max: 4.54
Current: 3.62
HNHPF's Pretax Margin % is ranked better than 50.22% of 2475
companies
in the Hardware industry
Industry Median: 3.58
vs HNHPF: 3.62
Hon Hai Precision Industry Co (OTCPK:HNHPF) 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.
Hon Hai Precision Industry Co Pretax Margin % Related Terms
Hon Hai Precision Industry Co Pretax 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.
Hon Hai Precision Industry Co Pretax Margin % Chart
HNHPF vs APH, GLW, TEL: Pretax Margin % Comparison
For the Electronic Components subindustry, Hon Hai Precision Industry Co'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.
Hon Hai Precision Industry Co Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hon Hai Precision Industry Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Hon Hai Precision Industry Co'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.
Hon Hai Precision Industry Co (HNHPF) has a Pretax Margin % of 3.16% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Hon Hai Precision Industry Co and its competitors. This is near median its historical median of 3.17. Over the past decade, Hon Hai Precision Industry Co's Pretax Margin % has ranged from 2.72 to 4.54. According to the industry distribution chart, Hon Hai Precision Industry Co ranks #1232 out of 2475 companies in the Hardware industry, placing it in the top 49.8%.
Is Hon Hai Precision Industry Co's Pretax Margin % too high?
Hon Hai Precision Industry Co's current Pretax Margin % of 3.16% is near median its 10-year median of 3.17. Over the past 10 years, this metric has ranged from a low of 2.72 to a high of 4.54. The Hardware industry median Pretax Margin % is 3.58. Hon Hai Precision Industry Co's value of 3.16% is 11.7% below this industry median. Based on the distribution chart, Hon Hai Precision Industry Co ranks #1232 out of 2475 companies in the Hardware industry, which is above the industry midpoint. Overall, Hon Hai Precision Industry Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hon Hai Precision Industry Co's Pretax Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Hon Hai Precision Industry Co ranks #1232 out of 2475 companies for Pretax Margin %. This puts Hon Hai Precision Industry Co in the upper half of its industry. The industry median Pretax Margin % is 3.58. Hon Hai Precision Industry Co's value of 3.16% is 11.7% below this benchmark. Historically, Hon Hai Precision Industry Co's own Pretax Margin % has ranged from 2.72 to 4.54 over the past decade. While the company's 10-year median is 3.17 vs. the industry median of 3.58, Hon Hai Precision Industry Co has consistently been below 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 Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,475 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. Hon Hai Precision Industry Co's current Pretax Margin % of 3.16% is 11.7% below 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 Hon Hai Precision Industry Co and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hon Hai Precision Industry Co's current Pretax Margin % is 3.16%, which is near median its own 10-year median of 3.17. 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?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co (HNHPF) is currently considered Fairly Valued. The stock's GF Value™ is $14.03, compared to a current price of $15.26 — trading 8.7% above its estimated fair value. The current Pretax Margin % is 3.16%, which is near median its 10-year median of 3.17 and 11.7% below the Hardware industry median of 3.58. Hon Hai Precision Industry Co's overall GF Score™ is 90/100 with 1 warning sign 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 Hon Hai Precision Industry Co (HNHPF), the current Pretax Margin % is 3.16% 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 Hon Hai Precision Industry Co (HNHPF) Overvalued in 2026?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co stock appears to be overvalued.
The current stock price of $15.26 is trading 8.7% above its estimated GF Value™ of $14.03.
GuruFocus considers Hon Hai Precision Industry Co to be Fairly Valued.
Key valuation signals for HNHPF:
Pretax Margin %: 3.16% (near median its 10-year median of 3.17)
GF Value™: $14.03 vs. price of $15.26 (8.7% above fair value)
Industry Position: 11.7% below the Hardware median (#1232 of 2475)
No single metric tells the full story. See the HNHPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hon Hai Precision Industry Co Business Description
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.
90GF Score
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