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
McDowell Holdings had a gross margin of 49.10% for the quarter that ended in Mar. 2025 => 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.
McDowell Holdings Gross Margin % Related Terms
McDowell Holdings Gross Margin % Historical Data
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The historical data trend for McDowell 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.
NSE:MCDHOLDING vs SCHW, MS, GS: Gross Margin % Comparison
For the Capital Markets subindustry, McDowell 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.
McDowell Holdings Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, McDowell Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where McDowell 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.
McDowell Holdings (NSE:MCDHOLDING) has a Gross Margin % of 49.10% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on McDowell Holdings and its competitors. This is near median its historical median of 47.31.
Is McDowell Holdings' Gross Margin % too high?
McDowell Holdings' current Gross Margin % of 49.10% is near median its 10-year median of 47.31. The Capital Markets industry median Gross Margin % is 49.63. McDowell Holdings' value of 49.10% is 1.1% below this industry median. Overall, McDowell Holdings has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does McDowell Holdings' Gross Margin % compare to SCHW and MS?
McDowell Holdings' Gross Margin % of 49.10% can be compared against companies in the Capital Markets industry. The industry median Gross Margin % is 49.63. McDowell Holdings' value of 49.10% is 1.1% below this benchmark. While the company's 10-year median is 47.31 vs. the industry median of 49.63, McDowell 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.63, based on 620 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. McDowell Holdings's current Gross Margin % of 49.10% is 1.1% 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 McDowell Holdings and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDowell Holdings's current Gross Margin % is 49.10%, which is near median its own 10-year median of 47.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDowell Holdings stock overvalued right now?
McDowell Holdings (NSE:MCDHOLDING) has a current Gross Margin % of 49.10%. The current Gross Margin % is 49.10%, which is near median its 10-year median of 47.31 and 1.1% below the Capital Markets industry median of 49.63. McDowell Holdings' overall GF Score™ is 4/100 with 8 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 McDowell Holdings (NSE:MCDHOLDING), the current Gross Margin % is 49.10% as of Mar. 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.
McDowell Holdings Ltd is an investment holding company. The company is organized into two operating segments, NBFC (CIC) and Unregistered CIC. The NBFC (CIC) business segment includes long-term investments through which the company earns dividends. Its operations are majorly concentrated in India.
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