CDW HoldingCDWHF Gross Margin % is 14.17% as of Dec. 2025, which is 26% below its 10-year median of 19.07. The stock has 3 warning signs investors should review. Among 1,011 Semiconductors companies, CDW Holding ranks worse than 77.25% 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
CDW Holding had a gross margin of 14.17% for the quarter that ended in Dec. 2025 => No sustainable 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.
CDW Holding Gross Margin % Related Terms
CDW Holding Gross Margin % Historical Data
* Premium members only.
The historical data trend for CDW Holding'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.
CDWHF vs LRCX, AMAT, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, CDW Holding'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.
CDW Holding Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, CDW Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CDW Holding'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.
CDW Holding (CDWHF) has a Gross Margin % of 14.17% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on CDW Holding and its competitors. This is 26% below median its historical median of 19.07. Over the past decade, CDW Holding's Gross Margin % has ranged from 15.09 to 26.04. According to the industry distribution chart, CDW Holding ranks #781 out of 1011 companies in the Semiconductors industry, placing it in the top 77.3%.
Is CDW Holding's Gross Margin % too high?
CDW Holding's current Gross Margin % of 14.17% is 26% below median its 10-year median of 19.07. Over the past 10 years, this metric has ranged from a low of 15.09 to a high of 26.04. The Semiconductors industry median Gross Margin % is 29.61. CDW Holding's value of 14.17% is 52.1% below this industry median. Based on the distribution chart, CDW Holding ranks #781 out of 1011 companies in the Semiconductors industry, which is in the bottom quartile relative to peers.
How does CDW Holding's Gross Margin % compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, CDW Holding ranks #781 out of 1011 companies for Gross Margin %. This places CDW Holding in the lower half of its industry. The industry median Gross Margin % is 29.61. CDW Holding's value of 14.17% is 52.1% below this benchmark. Historically, CDW Holding's own Gross Margin % has ranged from 15.09 to 26.04 over the past decade. While the company's 10-year median is 19.07 vs. the industry median of 29.61, CDW Holding 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 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. CDW Holding's current Gross Margin % of 14.17% is 52.1% 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 CDW Holding and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CDW Holding's current Gross Margin % is 14.17%, which is 26% below median its own 10-year median of 19.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CDW Holding stock overvalued right now?
Based on GuruFocus' analysis, CDW Holding (CDWHF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.11, compared to a current price of $0.07 — trading 39.5% below its estimated fair value. The current Gross Margin % is 14.17%, which is 26% below median its 10-year median of 19.07 and 52.1% below the Semiconductors industry median of 29.61. 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 CDW Holding (CDWHF), the current Gross Margin % is 14.17% 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.
CDW Holding Ltd is engaged in the production of precision components for mobile communication equipment, game box entertainment equipment, consumer and information technology equipment, office equipment, and electrical appliances. The business company operates in various segments that include Liquid Crystal Display (LCD) backlight units, which manufactures backlight units for LCD; Office Automation, which manufactures and trades parts for office equipment and electrical appliances; OEM and Accessories segment, which manufactures and trades precision accessories for LCD modules; and Others. The LCD Backlight Units segment generates maximum revenue for the company. Geographically, the company derives its key revenue from Mainland China followed by Hong Kong, Japan, and other regions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CDWHF has been successfully added to your 