Hudaco IndustriesJSE:HDC -3.03%89 Gross Margin % is 37.23% as of Nov. 2025, which is 2% above its 10-year median of 36.55. GuruFocus rates JSE:HDC with a GF Score™ of 89/100 and a GF Value™ of R189.33 (Fairly Valued). Among 153 Industrial Distribution companies, Hudaco Industries ranks better than 83.01% on this metric.
The historical rank and industry rank for Hudaco Industries's Gross Margin % or its related term are showing as below:
JSE:HDC'
s Gross Margin % Range Over the Past 10 Years
Min: 34.77 Med: 36.55 Max: 37.75
Current: 37.5
During the past 13 years, the highestGross Margin % of Hudaco Industries was 37.75%. The lowest was 34.77%. And the median was 36.55%.
JSE:HDC's Gross Margin % is ranked better than 83.01% of 153
companies
in the Industrial Distribution industry
Industry Median: 24.34
vs JSE:HDC: 37.50
Hudaco Industries had a gross margin of 37.23% for the quarter that ended in Nov. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hudaco Industries was 1.20% per year.
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
Hudaco Industries had a gross margin of 37.23% for the quarter that ended in Nov. 2025 => 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.
Hudaco Industries Gross Margin % Related Terms
Hudaco Industries Gross Margin % Historical Data
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The historical data trend for Hudaco Industries'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:HDC vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Hudaco 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.
Hudaco Industries Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Hudaco Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hudaco 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.
Hudaco Industries (JSE:HDC) has a Gross Margin % of 37.23% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hudaco Industries and its competitors. This is near median its historical median of 36.55. Over the past decade, Hudaco Industries' Gross Margin % has ranged from 34.77 to 37.75. According to the industry distribution chart, Hudaco Industries ranks #26 out of 153 companies in the Industrial Distribution industry, placing it in the top 17%.
Is Hudaco Industries' Gross Margin % too high?
Hudaco Industries' current Gross Margin % of 37.23% is near median its 10-year median of 36.55. Over the past 10 years, this metric has ranged from a low of 34.77 to a high of 37.75. The Industrial Distribution industry median Gross Margin % is 24.34. Hudaco Industries' value of 37.23% is 53% above this industry median. Based on the distribution chart, Hudaco Industries ranks #26 out of 153 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Hudaco 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 Hudaco Industries' Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Hudaco Industries ranks #26 out of 153 companies for Gross Margin %. This places Hudaco Industries in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.34. Hudaco Industries' value of 37.23% is 53% above this benchmark. Historically, Hudaco Industries' own Gross Margin % has ranged from 34.77 to 37.75 over the past decade. While the company's 10-year median is 36.55 vs. the industry median of 24.34, Hudaco Industries 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 24.34, based on 153 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. Hudaco Industries's current Gross Margin % of 37.23% is 53% 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 Hudaco Industries and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hudaco Industries's current Gross Margin % is 37.23%, which is near median its own 10-year median of 36.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudaco Industries stock overvalued right now?
Based on GuruFocus' analysis, Hudaco Industries (JSE:HDC) is currently considered Fairly Valued. The stock's GF Value™ is R189.33, compared to a current price of R187.15 — trading 1.2% below its estimated fair value. The current Gross Margin % is 37.23%, which is near median its 10-year median of 36.55 and 53% above the Industrial Distribution industry median of 24.34. Hudaco Industries' overall GF Score™ is 89/100. 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 Hudaco Industries (JSE:HDC), the current Gross Margin % is 37.23% as of Nov. 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 Hudaco Industries (JSE:HDC) Overvalued in 2026?
Based on GuruFocus' analysis, Hudaco Industries stock appears to be undervalued.
The current stock price of R187.15 is trading 1.2% below its estimated GF Value™ of R189.33.
GuruFocus considers Hudaco Industries to be Fairly Valued.
Key valuation signals for JSE:HDC:
Gross Margin %: 37.23% (near median its 10-year median of 36.55)
GF Value™: R189.33 vs. price of R187.15 (1.2% below fair value)
Industry Position: 53% above the Industrial Distribution median (#26 of 153)
No single metric tells the full story. See the JSE:HDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Engineering consumables segment. Geographically, it derives a majority of revenue from South Africa.
89GF Score
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