Adcorp HoldingsJSE:ADR +2.40%58 Gross Margin % is 10.08% as of Feb. 2026, which is 5% below its 10-year median of 10.66. GuruFocus rates JSE:ADR with a GF Score™ of 58/100 and a GF Value™ of R4.60 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,007 Business Services companies, Adcorp Holdings ranks worse than 91.76% 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
Adcorp Holdings had a gross margin of 10.08% for the quarter that ended in Feb. 2026 => 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.
Adcorp Holdings Gross Margin % Related Terms
Adcorp Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Adcorp 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.
JSE:ADR vs KFY, RHI, TNET: Gross Margin % Comparison
For the Staffing & Employment Services subindustry, Adcorp 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.
Adcorp Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Adcorp Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Adcorp 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.
Adcorp Holdings (JSE:ADR) has a Gross Margin % of 10.08% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Adcorp Holdings and its competitors. This is near median its historical median of 10.66. Over the past decade, Adcorp Holdings' Gross Margin % has ranged from 9.68 to 14.76. According to the industry distribution chart, Adcorp Holdings ranks #924 out of 1007 companies in the Business Services industry, placing it in the top 91.8%.
Is Adcorp Holdings' Gross Margin % too high?
Adcorp Holdings' current Gross Margin % of 10.08% is near median its 10-year median of 10.66. Over the past 10 years, this metric has ranged from a low of 9.68 to a high of 14.76. The Business Services industry median Gross Margin % is 34.50. Adcorp Holdings' value of 10.08% is 70.8% below this industry median. Based on the distribution chart, Adcorp Holdings ranks #924 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Adcorp Holdings has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adcorp Holdings' Gross Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, Adcorp Holdings ranks #924 out of 1007 companies for Gross Margin %. This places Adcorp Holdings in the lower half of its industry. The industry median Gross Margin % is 34.50. Adcorp Holdings' value of 10.08% is 70.8% below this benchmark. Historically, Adcorp Holdings' own Gross Margin % has ranged from 9.68 to 14.76 over the past decade. While the company's 10-year median is 10.66 vs. the industry median of 34.50, Adcorp Holdings 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 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. Adcorp Holdings's current Gross Margin % of 10.08% is 70.8% 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 Adcorp Holdings and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adcorp Holdings's current Gross Margin % is 10.08%, which is near median its own 10-year median of 10.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adcorp Holdings stock overvalued right now?
Based on GuruFocus' analysis, Adcorp Holdings (JSE:ADR) is currently considered Significantly Overvalued. The stock's GF Value™ is R4.60, compared to a current price of R6.40 — trading 39.1% above its estimated fair value. The current Gross Margin % is 10.08%, which is near median its 10-year median of 10.66 and 70.8% below the Business Services industry median of 34.50. Adcorp Holdings' overall GF Score™ is 58/100 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 Adcorp Holdings (JSE:ADR), the current Gross Margin % is 10.08% as of Feb. 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 Adcorp Holdings (JSE:ADR) Overvalued in 2026?
Based on GuruFocus' analysis, Adcorp Holdings stock appears to be overvalued.
The current stock price of R6.40 is trading 39.1% above its estimated GF Value™ of R4.60.
GuruFocus considers Adcorp Holdings to be Significantly Overvalued.
Key valuation signals for JSE:ADR:
Gross Margin %: 10.08% (near median its 10-year median of 10.66)
GF Value™: R4.60 vs. price of R6.40 (39.1% above fair value)
Industry Position: 70.8% below the Business Services median (#924 of 1007)
No single metric tells the full story. See the JSE:ADR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adcorp Holdings Ltd is engaged in providing workplace solutions. The company renders services in the fields of permanent recruitment and flexible staffing sectors, professional IT services, as well as the provision of business process outsourcing, training, and financial services. Its operating segments are Contingent staffing, Professional Services, Business support. and Contingent staffing Australia. The geographical segments are South Africa and International.
58GF Score
Get the complete analysis for JSE:ADR
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
JSE:ADR has been successfully added to your 
