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Afcon HoldingsXTAE:AFHL -0.25%48 Gross Margin % is 18.53% as of Mar. 2026, which is 73% above its 10-year median of 10.74. GuruFocus rates XTAE:AFHL with a GF Score™ of 48/100 and a GF Value™ of ₪87.39 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,453 Hardware companies, Afcon Holdings ranks worse than 68.73% 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
Afcon Holdings had a gross margin of 18.53% for the quarter that ended in Mar. 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.
Afcon Holdings Gross Margin % Related Terms
Afcon Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Afcon 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.
XTAE:AFHL vs APH, GLW, TEL: Gross Margin % Comparison
For the Electronic Components subindustry, Afcon 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.
Afcon Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Afcon Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Afcon 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.
Afcon Holdings (XTAE:AFHL) has a Gross Margin % of 18.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Afcon Holdings and its competitors. This is 73% above median its historical median of 10.74. Over the past decade, Afcon Holdings' Gross Margin % has ranged from 6.73 to 16.92. According to the industry distribution chart, Afcon Holdings ranks #1686 out of 2453 companies in the Hardware industry, placing it in the top 68.7%.
Is Afcon Holdings' Gross Margin % too high?
Afcon Holdings' current Gross Margin % of 18.53% is 73% above median its 10-year median of 10.74. Over the past 10 years, this metric has ranged from a low of 6.73 to a high of 16.92. The Hardware industry median Gross Margin % is 24.49. Afcon Holdings' value of 18.53% is 24.3% below this industry median. Based on the distribution chart, Afcon Holdings ranks #1686 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, Afcon Holdings has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Afcon Holdings' Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Afcon Holdings ranks #1686 out of 2453 companies for Gross Margin %. This places Afcon Holdings in the lower half of its industry. The industry median Gross Margin % is 24.49. Afcon Holdings' value of 18.53% is 24.3% below this benchmark. Historically, Afcon Holdings' own Gross Margin % has ranged from 6.73 to 16.92 over the past decade. While the company's 10-year median is 10.74 vs. the industry median of 24.49, Afcon 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.49, based on 2,453 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. Afcon Holdings's current Gross Margin % of 18.53% is 24.3% 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 Afcon Holdings and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Afcon Holdings's current Gross Margin % is 18.53%, which is 73% above median its own 10-year median of 10.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Afcon Holdings stock overvalued right now?
Based on GuruFocus' analysis, Afcon Holdings (XTAE:AFHL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₪87.39, compared to a current price of ₪608.00 — trading 595.7% above its estimated fair value. The current Gross Margin % is 18.53%, which is 73% above median its 10-year median of 10.74 and 24.3% below the Hardware industry median of 24.49. Afcon Holdings' overall GF Score™ is 48/100 with 6 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 Afcon Holdings (XTAE:AFHL), the current Gross Margin % is 18.53% 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 Afcon Holdings (XTAE:AFHL) Overvalued in 2026?
Based on GuruFocus' analysis, Afcon Holdings stock appears to be overvalued.
The current stock price of ₪608.00 is trading 595.7% above its estimated GF Value™ of ₪87.39.
GuruFocus considers Afcon Holdings to be Significantly Overvalued.
Key valuation signals for XTAE:AFHL:
Gross Margin %: 18.53% (73% above median its 10-year median of 10.74)
GF Value™: ₪87.39 vs. price of ₪608.00 (595.7% above fair value)
Industry Position: 24.3% below the Hardware median (#1686 of 2453)
No single metric tells the full story. See the XTAE:AFHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Afcon Holdings Ltd manufactures electronic components. It provide solutions such as construction contracting and finishing works, installation of electro-mechanical systems (electricity, air conditioning, cooling and plumbing), installation of electrical systems for industry, manufacture and installation of electrical infrastructure products for high voltage, medium / high voltage and low voltage for buildings, Gas engineering, and construction and execution of wind farms, photovoltaic fields and infrastructure facilities. It provides solutions to large-scale projects in the fields of infrastructure, electromechanical systems, control and automation and communications.
48GF Score
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