Supply NetworkASX:SNL -1.28%96 Gross Margin % is 43.21% as of Dec. 2025, which is 2% above its 10-year median of 42.37. GuruFocus rates ASX:SNL with a GF Score™ of 96/100 and a GF Value™ of A$34.67 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,313 Vehicles & Parts companies, Supply Network ranks better than 89.87% 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
Supply Network had a gross margin of 43.21% 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.
Supply Network Gross Margin % Related Terms
Supply Network Gross Margin % Historical Data
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The historical data trend for Supply Network'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.
For the Auto Parts subindustry, Supply Network'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.
Supply Network Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Supply Network's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Supply Network'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.
Supply Network (ASX:SNL) has a Gross Margin % of 43.21% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Supply Network and its competitors. This is near median its historical median of 42.37. Over the past decade, Supply Network's Gross Margin % has ranged from 41.48 to 43.86. According to the industry distribution chart, Supply Network ranks #133 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 10.1%.
Is Supply Network's Gross Margin % too high?
Supply Network's current Gross Margin % of 43.21% is near median its 10-year median of 42.37. Over the past 10 years, this metric has ranged from a low of 41.48 to a high of 43.86. The Vehicles & Parts industry median Gross Margin % is 19.84. Supply Network's value of 43.21% is 117.8% above this industry median. Based on the distribution chart, Supply Network ranks #133 out of 1313 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Supply Network has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Supply Network's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Supply Network ranks #133 out of 1313 companies for Gross Margin %. This places Supply Network in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.84. Supply Network's value of 43.21% is 117.8% above this benchmark. Historically, Supply Network's own Gross Margin % has ranged from 41.48 to 43.86 over the past decade. While the company's 10-year median is 42.37 vs. the industry median of 19.84, Supply Network 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 a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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. Supply Network's current Gross Margin % of 43.21% is 117.8% 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 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 Supply Network and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Supply Network's current Gross Margin % is 43.21%, which is near median its own 10-year median of 42.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Supply Network stock overvalued right now?
Based on GuruFocus' analysis, Supply Network (ASX:SNL) is currently considered Fairly Valued. The stock's GF Value™ is A$34.67, compared to a current price of A$32.30 — trading 6.8% below its estimated fair value. The current Gross Margin % is 43.21%, which is near median its 10-year median of 42.37 and 117.8% above the Vehicles & Parts industry median of 19.84. Supply Network's overall GF Score™ is 96/100 with 1 warning sign 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 Supply Network (ASX:SNL), the current Gross Margin % is 43.21% 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 Supply Network (ASX:SNL) Overvalued in 2026?
Based on GuruFocus' analysis, Supply Network stock appears to be undervalued.
The current stock price of A$32.30 is trading 6.8% below its estimated GF Value™ of A$34.67.
GuruFocus considers Supply Network to be Fairly Valued.
Key valuation signals for ASX:SNL:
Gross Margin %: 43.21% (near median its 10-year median of 42.37)
GF Value™: A$34.67 vs. price of A$32.30 (6.8% below fair value)
Industry Position: 117.8% above the Vehicles & Parts median (#133 of 1313)
No single metric tells the full story. See the ASX:SNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Supply Network is a distributor of aftermarket truck and bus parts in Australia and New Zealand, operating under the Multispares brand. The company provides a range of services, including parts supply, procurement, and technical support for fleet operators. Supply Network's revenue has increasingly shifted toward truck parts, which we estimate accounts for at least 85% of sales. The company operates 24 distribution centers and branch sites across Australia and New Zealand.
96GF Score
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