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ADI Global DistributionADIG +5.28%14 Gross Margin % is 22.26% as of Dec. 2025, which is 10% above its 10-year median of 20.28. GuruFocus rates ADIG with a GF Score™ of 14/100. The stock has 2 warning signs investors should review. Among 2,453 Hardware companies, ADI Global Distribution ranks worse than 55.61% on this metric.
ADI Global Distribution (NYSE:ADIG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
ADI Global Distribution had a gross margin of 22.26% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
ADI Global Distribution Gross Margin % Related Terms
ADI Global Distribution Gross 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.
ADI Global Distribution Gross Margin % Chart
ADI Global Distribution Annual Data
Trend
Dec23
Dec24
Dec25
Gross Margin %
18.71
20.28
22.26
ADI Global Distribution Semi-Annual Data
Dec23
Dec24
Dec25
Gross Margin %
18.71
20.28
22.26
ADIG vs : Gross Margin % Comparison
For the Computer Hardware subindustry, ADI Global Distribution's Gross Margin %, along with its competitors' market caps and Gross 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.
ADI Global Distribution Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, ADI Global Distribution's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ADI Global Distribution's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
ADI Global Distribution (ADIG) has a Gross Margin % of 22.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ADI Global Distribution and its competitors. This is 10% above median its historical median of 20.28. Over the past decade, ADI Global Distribution's Gross Margin % has ranged from 18.71 to 22.26. According to the industry distribution chart, ADI Global Distribution ranks #1364 out of 2453 companies in the Hardware industry, placing it in the top 55.6%.
Is ADI Global Distribution's Gross Margin % too high?
ADI Global Distribution's current Gross Margin % of 22.26% is 10% above median its 10-year median of 20.28. Over the past 10 years, this metric has ranged from a low of 18.71 to a high of 22.26. The Hardware industry median Gross Margin % is 24.49. ADI Global Distribution's value of 22.26% is 9.1% below this industry median. Based on the distribution chart, ADI Global Distribution ranks #1364 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, ADI Global Distribution has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does ADI Global Distribution's Gross Margin % compare to ?
According to the Hardware industry distribution chart, ADI Global Distribution ranks #1364 out of 2453 companies for Gross Margin %. This places ADI Global Distribution in the lower half of its industry. The industry median Gross Margin % is 24.49. ADI Global Distribution's value of 22.26% is 9.1% below this benchmark. Historically, ADI Global Distribution's own Gross Margin % has ranged from 18.71 to 22.26 over the past decade. While the company's 10-year median is 20.28 vs. the industry median of 24.49, ADI Global Distribution 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 Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.49, based on 2,453 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ADI Global Distribution's current Gross Margin % of 22.26% is 9.1% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on ADI Global Distribution and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ADI Global Distribution's current Gross Margin % is 22.26%, which is 10% above median its own 10-year median of 20.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ADI Global Distribution stock overvalued right now?
ADI Global Distribution (ADIG) has a current Gross Margin % of 22.26%. The current Gross Margin % is 22.26%, which is 10% above median its 10-year median of 20.28 and 9.1% below the Hardware industry median of 24.49. ADI Global Distribution's overall GF Score™ is 14/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For ADI Global Distribution (ADIG), the current Gross Margin % is 22.26% 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.
ADI Global Distribution Inc is a specialty distributor of professionally installed low-voltage products, including security and audio-visual (AV) solutions, serving commercial and residential markets through an omnichannel go-to-market platform. It sells to professional installers, dealers, and integrators. The company's product portfolio includes products from third-party suppliers across low-voltage categories, as well as products and services offered under its own brands. Its customer base includes independent contractors, systems integrators, and low-voltage specialists serving business, institutional, and residential end users.
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