Advanced Chemical Industries (DHA:ACI) 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
Advanced Chemical Industries had a gross margin of 25.57% for the quarter that ended in Mar. 2026 => 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.
Advanced Chemical Industries Gross Margin % Related Terms
Advanced Chemical Industries 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.
For the Conglomerates subindustry, Advanced Chemical Industries'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.
Advanced Chemical Industries Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Advanced Chemical Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Advanced Chemical Industries'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.
Advanced Chemical Industries (DHA:ACI) has a Gross Margin % of 25.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Advanced Chemical Industries and its competitors. This is near median its historical median of 27.47. Over the past decade, Advanced Chemical Industries' Gross Margin % has ranged from 22.43 to 31.18. According to the industry distribution chart, Advanced Chemical Industries ranks #254 out of 511 companies in the Conglomerates industry, placing it in the top 49.7%.
Is Advanced Chemical Industries' Gross Margin % too high?
Advanced Chemical Industries' current Gross Margin % of 25.57% is near median its 10-year median of 27.47. Over the past 10 years, this metric has ranged from a low of 22.43 to a high of 31.18. The Conglomerates industry median Gross Margin % is 25.96. Advanced Chemical Industries' value of 25.57% is 1.5% below this industry median. Based on the distribution chart, Advanced Chemical Industries ranks #254 out of 511 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Advanced Chemical Industries has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Chemical Industries' Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Advanced Chemical Industries ranks #254 out of 511 companies for Gross Margin %. This puts Advanced Chemical Industries in the upper half of its industry. The industry median Gross Margin % is 25.96. Advanced Chemical Industries' value of 25.57% is 1.5% below this benchmark. Historically, Advanced Chemical Industries' own Gross Margin % has ranged from 22.43 to 31.18 over the past decade. While the company's 10-year median is 27.47 vs. the industry median of 25.96, Advanced Chemical Industries 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 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. Advanced Chemical Industries's current Gross Margin % of 25.57% is 1.5% 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 Advanced Chemical Industries and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Chemical Industries's current Gross Margin % is 25.57%, which is near median its own 10-year median of 27.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Advanced Chemical Industries (DHA:ACI) is currently considered Fairly Valued. The stock's GF Value™ is BDT210.30, compared to a current price of BDT193.00 — trading 8.2% below its estimated fair value. The current Gross Margin % is 25.57%, which is near median its 10-year median of 27.47 and 1.5% below the Conglomerates industry median of 25.96. Advanced Chemical Industries' overall GF Score™ is 89/100 with 4 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 Advanced Chemical Industries (DHA:ACI), the current Gross Margin % is 25.57% as of Mar. 2026. 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 Advanced Chemical Industries (DHA:ACI) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Chemical Industries stock appears to be undervalued.
The current stock price of BDT193.00 is trading 8.2% below its estimated GF Value™ of BDT210.30.
GuruFocus considers Advanced Chemical Industries to be Fairly Valued.
Key valuation signals for DHA:ACI:
Gross Margin %: 25.57% (near median its 10-year median of 27.47)
GF Value™: BDT210.30 vs. price of BDT193.00 (8.2% below fair value)
Industry Position: 1.5% below the Conglomerates median (#254 of 511)
No single metric tells the full story. See the DHA:ACI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Chemical Industries PLC is a Bangladesh-based company engaged in the manufacturing of pharmaceuticals, consumer brands, animal health products, and also markets, along with agrochemicals, seeds, and other consumer brand items. The company operates in Healthcare, Agribusinesses, Retail Chain, and Consumer brands that include Livestock, Fisheries, Farm Mechanization activities, Toiletries, Home Care, Hygiene, Electrical, Electronics, Mobile, Salt, Flour, Foods, Rice, Tea, Edible Oil, Paints, and International Businesses.
89GF Score
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