DiplomaDPLMF 96 Gross Margin % is 48.00% as of Mar. 2026, which is 33% above its 10-year median of 36.14. GuruFocus rates DPLMF with a GF Score™ of 96/100 and a GF Value™ of $73.82 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 154 Industrial Distribution companies, Diploma ranks better than 94.16% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Diploma's Gross Profit for the
six
months ended in Mar. 2026 was $545 Mil. Diploma's Revenue for the
six
months ended in Mar. 2026 was $1,135 Mil. Therefore, Diploma's Gross Margin % for the quarter that ended in Mar. 2026 was 48.00%.
The historical rank and industry rank for Diploma's Gross Margin % or its related term are showing as below:
DPLMF'
s Gross Margin % Range Over the Past 10 Years
Min: 14.25 Med: 36.14 Max: 47.11
Current: 47.11
During the past 13 years, the highestGross Margin % of Diploma was 47.11%. The lowest was 14.25%. And the median was 36.14%.
DPLMF's Gross Margin % is ranked better than 94.16% of 154
companies
in the Industrial Distribution industry
Industry Median: 24.295
vs DPLMF: 47.11
Diploma had a gross margin of 48.00% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Diploma was 9.20% per year.
Diploma (OTCPK:DPLMF) 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
Diploma had a gross margin of 48.00% for the quarter that ended in Mar. 2026 => 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.
Diploma Gross Margin % Related Terms
Diploma Gross Margin % Historical Data
* Premium members only.
The historical data trend for Diploma'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.
DPLMF vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Diploma'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.
Diploma Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Diploma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Diploma'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.
Diploma (DPLMF) has a Gross Margin % of 48.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Diploma and its competitors. This is 33% above median its historical median of 36.14. Over the past decade, Diploma's Gross Margin % has ranged from 14.25 to 47.11. According to the industry distribution chart, Diploma ranks #9 out of 154 companies in the Industrial Distribution industry, placing it in the top 5.8%.
Is Diploma's Gross Margin % too high?
Diploma's current Gross Margin % of 48.00% is 33% above median its 10-year median of 36.14. Over the past 10 years, this metric has ranged from a low of 14.25 to a high of 47.11. The Industrial Distribution industry median Gross Margin % is 24.30. Diploma's value of 48.00% is 97.6% above this industry median. Based on the distribution chart, Diploma ranks #9 out of 154 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Diploma has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diploma's Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Diploma ranks #9 out of 154 companies for Gross Margin %. This places Diploma in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.30. Diploma's value of 48.00% is 97.6% above this benchmark. Historically, Diploma's own Gross Margin % has ranged from 14.25 to 47.11 over the past decade. While the company's 10-year median is 36.14 vs. the industry median of 24.30, Diploma 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 Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.30, based on 154 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. Diploma's current Gross Margin % of 48.00% is 97.6% 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 Diploma and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diploma's current Gross Margin % is 48.00%, which is 33% above median its own 10-year median of 36.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diploma stock overvalued right now?
Based on GuruFocus' analysis, Diploma (DPLMF) is currently considered Modestly Overvalued. The stock's GF Value™ is $73.82, compared to a current price of $92.29 — trading 25% above its estimated fair value. The current Gross Margin % is 48.00%, which is 33% above median its 10-year median of 36.14 and 97.6% above the Industrial Distribution industry median of 24.30. Diploma's overall GF Score™ is 96/100 with 7 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 Diploma (DPLMF), the current Gross Margin % is 48.00% 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 Diploma (DPLMF) Overvalued in 2026?
Based on GuruFocus' analysis, Diploma stock appears to be overvalued.
The current stock price of $92.29 is trading 25% above its estimated GF Value™ of $73.82.
GuruFocus considers Diploma to be Modestly Overvalued.
Key valuation signals for DPLMF:
Gross Margin %: 48.00% (33% above median its 10-year median of 36.14)
GF Value™: $73.82 vs. price of $92.29 (25% above fair value)
Industry Position: 97.6% above the Industrial Distribution median (#9 of 154)
No single metric tells the full story. See the DPLMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diploma PLC is a group of businesses supplying specialised technical products and services to various industries. The Group is organized into three main reportable business sectors: Controls, Seals and Life Sciences. The company offers consumables, instrumentation, and related services to the healthcare and environmental industries; seals, gaskets, filters, cylinders, components, and kits for heavy mobile machinery and industrial equipment; and specialized wiring, connectors, fasteners, and control devices for various applications. It operates in segments such as Wire & Cable (UK), Industrial Automation, Specialty Adhesives, Windy City Wire, Interconnect and Specialty Fasteners. The company operates in UK, USA, Rest of Europe, and Rest of World.
96GF Score
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