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
Dell Technologies had a gross margin of 17.75% for the quarter that ended in Apr. 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.
Dell Technologies Gross Margin % Related Terms
Dell Technologies Gross Margin % Historical Data
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The historical data trend for Dell Technologies'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.
XSWX:DELL vs SNDK, ANET, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Dell Technologies'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.
Dell Technologies Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Dell Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dell Technologies'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.
Dell Technologies (XSWX:DELL) has a Gross Margin % of 17.75% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dell Technologies and its competitors. This is 22% below median its historical median of 22.74. Over the past decade, Dell Technologies' Gross Margin % has ranged from 19.07 to 27.65. According to the industry distribution chart, Dell Technologies ranks #1542 out of 2450 companies in the Hardware industry, placing it in the top 62.9%.
Is Dell Technologies' Gross Margin % too high?
Dell Technologies' current Gross Margin % of 17.75% is 22% below median its 10-year median of 22.74. Over the past 10 years, this metric has ranged from a low of 19.07 to a high of 27.65. The Hardware industry median Gross Margin % is 24.53. Dell Technologies' value of 17.75% is 27.6% below this industry median. Based on the distribution chart, Dell Technologies ranks #1542 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, Dell Technologies has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Dell Technologies' Gross Margin % compare to SNDK and ANET?
According to the Hardware industry distribution chart, Dell Technologies ranks #1542 out of 2450 companies for Gross Margin %. This places Dell Technologies in the lower half of its industry. The industry median Gross Margin % is 24.53. Dell Technologies' value of 17.75% is 27.6% below this benchmark. Historically, Dell Technologies' own Gross Margin % has ranged from 19.07 to 27.65 over the past decade. While the company's 10-year median is 22.74 vs. the industry median of 24.53, Dell Technologies 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 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. Dell Technologies's current Gross Margin % of 17.75% is 27.6% 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 Dell Technologies and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dell Technologies's current Gross Margin % is 17.75%, which is 22% below median its own 10-year median of 22.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dell Technologies stock overvalued right now?
Dell Technologies (XSWX:DELL) has a current Gross Margin % of 17.75%. The stock's GF Value™ is CHF152.64, compared to a current price of CHF317.54 — trading 108% above its estimated fair value. The current Gross Margin % is 17.75%, which is 22% below median its 10-year median of 22.74 and 27.6% below the Hardware industry median of 24.53. Dell Technologies' overall GF Score™ is 74/100 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 Dell Technologies (XSWX:DELL), the current Gross Margin % is 17.75% as of Apr. 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 Dell Technologies (XSWX:DELL) Overvalued in 2026?
Based on GuruFocus' analysis, Dell Technologies stock appears to be overvalued.
The current stock price of CHF317.54 is trading 108% above its estimated GF Value™ of CHF152.64.
Key valuation signals for XSWX:DELL:
Gross Margin %: 17.75% (22% below median its 10-year median of 22.74)
GF Value™: CHF152.64 vs. price of CHF317.54 (108% above fair value)
Industry Position: 27.6% below the Hardware median (#1542 of 2450)
No single metric tells the full story. See the XSWX:DELL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dell Technologies is a broad information technology vendor, primarily supplying hardware to enterprises. It focuses on premium and commercial personal computers, as well as enterprise on-premises data center hardware. It holds top-three shares in its core markets of personal computers, peripheral displays, mainstream servers, and external storage. Dell has a robust ecosystem of component and assembly partners and also relies heavily on channel partners to fulfill its sales.
74GF Score
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