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WEX (WEX) Gross Margin % : 59.06% (As of Mar. 2024)


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What is WEX Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. WEX's Gross Profit for the three months ended in Mar. 2024 was $386 Mil. WEX's Revenue for the three months ended in Mar. 2024 was $653 Mil. Therefore, WEX's Gross Margin % for the quarter that ended in Mar. 2024 was 59.06%.


The historical rank and industry rank for WEX's Gross Margin % or its related term are showing as below:

WEX' s Gross Margin % Range Over the Past 10 Years
Min: 52.6   Med: 59.61   Max: 63.29
Current: 61.63


During the past 13 years, the highest Gross Margin % of WEX was 63.29%. The lowest was 52.60%. And the median was 59.61%.

WEX's Gross Margin % is ranked better than
69.93% of 2624 companies
in the Software industry
Industry Median: 41.67 vs WEX: 61.63

WEX had a gross margin of 59.06% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for WEX was -0.30% per year.


WEX Gross Margin % Historical Data

The historical data trend for WEX'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.

* Premium members only.

WEX Gross Margin % Chart

WEX Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 61.72 56.84 62.06 60.41 61.80

WEX Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 59.59 62.18 63.91 61.42 59.06

Competitive Comparison of WEX's Gross Margin %

For the Software - Infrastructure subindustry, WEX'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.


WEX's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, WEX's Gross Margin % distribution charts can be found below:

* The bar in red indicates where WEX's Gross Margin % falls into.



WEX Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

WEX's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1574.7 / 2548
=(Revenue - Cost of Goods Sold) / Revenue
=(2548 - 973.3) / 2548
=61.80 %

WEX's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=385.5 / 652.7
=(Revenue - Cost of Goods Sold) / Revenue
=(652.7 - 267.2) / 652.7
=59.06 %

* 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.


WEX  (NYSE:WEX) 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

WEX had a gross margin of 59.06% for the quarter that ended in Mar. 2024 => 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.


WEX Gross Margin % Related Terms

Thank you for viewing the detailed overview of WEX's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


WEX (WEX) Business Description

Traded in Other Exchanges
Address
1 Hancock Street, Portland, ME, USA, 04101
WEX Inc is a provider of corporate payment solutions. The company operates three business segments: Fleet solutions, Travel & Corporate Solutions, and Health & Employee Benefit Solutions. Fleet Solutions, the largest segment by revenue, provides fleet vehicle payment-processing services for commercial and government fleets. Travel and corporate solutions offer business-to-business payment processing and transaction monitoring services. Health and employee benefit solutions generate revenue from healthcare payment products and its consumer-directed software platform. Wex's largest end market is the United States of America.
Executives
Jack Vanwoerkom director
Jennifer Kimball officer: Interim CFO C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Stephen Montgomery Smith director C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Robert Joseph Deshaies officer: President, WEX Health C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Melanie J Tinto officer: Chief Human Resources Officer C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
James R Groch director 50 SOUTH 16TH STREET, SUITE 3000, PHILADELPHIA PA 19102
Carlos Carriedo officer: COO, International C/0 WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Melissa D Goodwin officer: SVP, Finance and CFO C/O WRIGHT EXPRESS CORPORATION, 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Regina O Sommer director 201 JONES RD, WALTHAM MA 02451
David G Cooper officer: Chief Technology Officer C/O WEX INC., 9, SOUTH PORTLAND ME 04106
Hilary A Rapkin officer: SVP, Gen. Counsel & Corp. Sec. C/O WRIGHT EXPRESS CORPORATION, 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Derrick A. Roman director C/O COMMSCOPE HOLDING COMPANY, INC., 1100 COMMSCOPE PLACE, SE, HICKORY NC 28602
Jagtar Narula officer: Chief Financial Officer 333 THREE D SYSTEMS CIRCLE, ROCK HILL SC 29730
Karen B. Stroup officer: Chief Digital Officer 440 S. CHURCH STREET, SUITE 700, CHARLOTTE NC 28202
Bhavana Bartholf director C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106

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