Adrad HoldingsASX:AHL -0.34%43 Gross Margin % is 52.15% as of Dec. 2025, which is 0% below its 10-year median of 52.34. GuruFocus rates ASX:AHL with a GF Score™ of 43/100 and a GF Value™ of A$0.79 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,997 Industrial Products companies, Adrad Holdings ranks better than 91.59% on this metric.
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
Adrad Holdings had a gross margin of 52.15% for the quarter that ended in Dec. 2025 => Durable competitive advantage
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.
Adrad Holdings Gross Margin % Related Terms
Adrad Holdings Gross Margin % Historical Data
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The historical data trend for Adrad Holdings's Gross 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.
ASX:AHL vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Adrad Holdings'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.
Adrad Holdings Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Adrad Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Adrad Holdings'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.
Adrad Holdings (ASX:AHL) has a Gross Margin % of 52.15% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Adrad Holdings and its competitors. This is near median its historical median of 52.34. Over the past decade, Adrad Holdings' Gross Margin % has ranged from 50.30 to 53.65. According to the industry distribution chart, Adrad Holdings ranks #252 out of 2997 companies in the Industrial Products industry, placing it in the top 8.4%.
Is Adrad Holdings' Gross Margin % too high?
Adrad Holdings' current Gross Margin % of 52.15% is near median its 10-year median of 52.34. Over the past 10 years, this metric has ranged from a low of 50.30 to a high of 53.65. The Industrial Products industry median Gross Margin % is 26.81. Adrad Holdings' value of 52.15% is 94.5% above this industry median. Based on the distribution chart, Adrad Holdings ranks #252 out of 2997 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Adrad Holdings has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adrad Holdings' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Adrad Holdings ranks #252 out of 2997 companies for Gross Margin %. This places Adrad Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.81. Adrad Holdings' value of 52.15% is 94.5% above this benchmark. Historically, Adrad Holdings' own Gross Margin % has ranged from 50.30 to 53.65 over the past decade. While the company's 10-year median is 52.34 vs. the industry median of 26.81, Adrad Holdings 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 Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,997 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. Adrad Holdings's current Gross Margin % of 52.15% is 94.5% 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 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 Adrad Holdings and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adrad Holdings's current Gross Margin % is 52.15%, which is near median its own 10-year median of 52.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adrad Holdings stock overvalued right now?
Based on GuruFocus' analysis, Adrad Holdings (ASX:AHL) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.79, compared to a current price of A$1.45 — trading 83.5% above its estimated fair value. The current Gross Margin % is 52.15%, which is near median its 10-year median of 52.34 and 94.5% above the Industrial Products industry median of 26.81. Adrad Holdings' overall GF Score™ is 43/100 with 6 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 Adrad Holdings (ASX:AHL), the current Gross Margin % is 52.15% 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 Adrad Holdings (ASX:AHL) Overvalued in 2026?
Based on GuruFocus' analysis, Adrad Holdings stock appears to be overvalued.
The current stock price of A$1.45 is trading 83.5% above its estimated GF Value™ of A$0.79.
GuruFocus considers Adrad Holdings to be Significantly Overvalued.
Key valuation signals for ASX:AHL:
Gross Margin %: 52.15% (near median its 10-year median of 52.34)
GF Value™: A$0.79 vs. price of A$1.45 (83.5% above fair value)
Industry Position: 94.5% above the Industrial Products median (#252 of 2997)
No single metric tells the full story. See the ASX:AHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adrad Holdings Ltd designs and manufactures a wide variety of original equipment and aftermarket heat exchange products for both mobile and stationary applications. The company operates in two segments: Heat Transfer Solutions and Distribution. The Heat Transfer Solutions segment which designs and manufactures industrial cooling solutions for use in road transport and heavy vehicles, mining, power generation, data centres, and rail industries. The Distribution segment includes imports and distributes radiators, mobile and stationary heat exchange products, as well as a variety of automotive parts for the automotive and industrial markets. Geographically, the company derives key revenue from Australasia and the rest from Asia, the Middle East, North America, South America, Europe, & Africa.
43GF Score
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