CDWMEX:CDW 62 Gross Margin % is 20.95% as of Mar. 2026, which is 21% above its 10-year median of 17.26. GuruFocus rates MEX:CDW with a GF Score™ of 62/100 and a GF Value™ of MXN3,493.46 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,685 Software companies, CDW ranks worse than 77.36% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. CDW's Gross Profit for the
three
months ended in Mar. 2026 was MXN21,459 Mil. CDW's Revenue for the
three
months ended in Mar. 2026 was MXN102,422 Mil. Therefore, CDW's Gross Margin % for the quarter that ended in Mar. 2026 was 20.95%.
The historical rank and industry rank for CDW's Gross Margin % or its related term are showing as below:
MEX:CDW'
s Gross Margin % Range Over the Past 10 Years
Min: 16.52 Med: 17.26 Max: 21.92
Current: 21.57
During the past 13 years, the highestGross Margin % of CDW was 21.92%. The lowest was 16.52%. And the median was 17.26%.
MEX:CDW's Gross Margin % is ranked worse than 77.36% of 2685
companies
in the Software industry
Industry Median: 40.45
vs MEX:CDW: 21.57
CDW had a gross margin of 20.95% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for CDW was 5.70% per year.
CDW (MEX:CDW) 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
CDW had a gross margin of 20.95% 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.
CDW Gross Margin % Related Terms
CDW Gross Margin % Historical Data
* Premium members only.
The historical data trend for CDW'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.
MEX:CDW vs LDOS, BR, APLD: Gross Margin % Comparison
For the Information Technology Services subindustry, CDW'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 Gross Margin % vs Software Industry
For the Software industry and Technology sector, CDW's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CDW'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 (MEX:CDW) has a Gross Margin % of 20.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CDW and its competitors. This is 21% above median its historical median of 17.26. Over the past decade, CDW's Gross Margin % has ranged from 16.52 to 21.92. According to the industry distribution chart, CDW ranks #2077 out of 2685 companies in the Software industry, placing it in the top 77.4%.
Is CDW's Gross Margin % too high?
CDW's current Gross Margin % of 20.95% is 21% above median its 10-year median of 17.26. Over the past 10 years, this metric has ranged from a low of 16.52 to a high of 21.92. The Software industry median Gross Margin % is 40.45. CDW's value of 20.95% is 48.2% below this industry median. Based on the distribution chart, CDW ranks #2077 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, CDW has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CDW's Gross Margin % compare to LDOS and BR?
According to the Software industry distribution chart, CDW ranks #2077 out of 2685 companies for Gross Margin %. This places CDW in the lower half of its industry. The industry median Gross Margin % is 40.45. CDW's value of 20.95% is 48.2% below this benchmark. Historically, CDW's own Gross Margin % has ranged from 16.52 to 21.92 over the past decade. While the company's 10-year median is 17.26 vs. the industry median of 40.45, CDW 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 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's current Gross Margin % of 20.95% is 48.2% 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 and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CDW's current Gross Margin % is 20.95%, which is 21% above median its own 10-year median of 17.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CDW stock overvalued right now?
Based on GuruFocus' analysis, CDW (MEX:CDW) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN3,493.46, compared to a current price of MXN2,283.02 — trading 34.6% below its estimated fair value. The current Gross Margin % is 20.95%, which is 21% above median its 10-year median of 17.26 and 48.2% below the Software industry median of 40.45. CDW's overall GF Score™ is 62/100 with 2 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 CDW (MEX:CDW), the current Gross Margin % is 20.95% 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 CDW (MEX:CDW) Overvalued in 2026?
Based on GuruFocus' analysis, CDW stock appears to be undervalued.
The current stock price of MXN2,283.02 is trading 34.6% below its estimated GF Value™ of MXN3,493.46.
GuruFocus considers CDW to be Significantly Undervalued.
Key valuation signals for MEX:CDW:
Gross Margin %: 20.95% (21% above median its 10-year median of 17.26)
GF Value™: MXN3,493.46 vs. price of MXN2,283.02 (34.6% below fair value)
Industry Position: 48.2% below the Software median (#2077 of 2685)
No single metric tells the full story. See the MEX:CDW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CDW Corp is a multi-brand provider of information technology (IT) solutions to businesses, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. The company's offerings range from hardware and software products to integrated IT solutions and services, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. Its reportable segments are Corporate, Small Business, Public, and Other. The Corporate and Small Business segments serve US private sector business customers, while the Public segment consists of government agencies and education and healthcare institutions in the US. The Corporate segment generates the majority of its revenue in the United States.
62GF Score
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